Mahindra XUV 3XO betting big on aggressive pricing. Here’s its secret recipe

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  • Mahindra XUV 3XO is the most affordable compact SUV in the Indian market and the OEM is betting big on technology to achieve that point.
Mahindra XUV 3XO is the most affordable compact SUV in the Indian market and the OEM is betting big on technology to achieve that point.

Mahindra & Mahindra launched its latest compact SUV XUV 3XO on Monday, which essentially came as a major upgrade to the Mahindra XUV300. The SUV features a heavily redesigned approach along with a wide range of fresh features inside the cabin, which altogether enhance its overall appeal as an upmarket compact SUV. The new SUV comes available at an aggressive starting price of 7.49 lakh (ex-showroom). Mahindra attributed this aggressive pricing to the significant investments in automotive technology, claims a report by Mint.

Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Equipment sectors) Mahindra & Mahindra said that the company is the largest buyer of automotive technology in India, which allows the OEM to equip its vehicles with the latest features such as Advanced Driver Assistance Systems (ADAS). He also reportedly said that the OEM has been capitalizing on these investments to achieve a substantial cost advantage over rivals when it comes to aggressively pricing its SUVs.

The Mahindra XUV 3XO comes as the most affordable compact SUV in the Indian market. Despite the affordable pricing, the SUV boasts a wide range of features which all together make the SUV an attractive proposition for budget-conscious Indian buyers who seek as much value as possible at as little as possible cost. The affordable pricing strategy is boosting the auto company’s morale against tough rivals like Tata Nexon, Maruti Suzuki Brezza and Hyundai Venue. In comparison, the widely popular Tata Nexon comes available at a starting price of 8.15 lakh (ex-showroom), while the Maruti Suzuki Brezza’s pricing starts at 8.34 lakh (ex-showroom).

Mahindra XUV 3XO: Technology is the key

Speaking on the latest SUV, the Mahindra official said that the company has done everything possible to win the segment and to create a proposition that creates the right to win. “Comparative right to win doesn’t come only on a price and doesn’t come only on a product and doesn’t come only out of technology or features. It’s a combination of getting it all right. And we think we have”, Jejurikar reportedly told Mint.

The Mahindra official further stated that technologies play a crucial role in making the XUV 3XO an attractive proposition for consumers that comes with an affordable price tag. “There are many technologies in which we are the volume leader. We are the largest buyer of this automotive tech. When you look at our product portfolio, we have more tech on our XUV700 than anyone else, and we sell 75 per cent in the highest version. So we are the biggest buyers of tech in India, not any other SUV maker,” Jejurikar reportedly said, further adding, “How many players till now have brought in these technologies? We were the first ones to bring in ADAS and we buy a large volume of technologies that power connected technologies like our Adrenox. We call it the silver box. So both of our key models have a very high percentage of sales from the high-end variants.”

Mahindra aims pole position in Indian compact SUV market by 2027

With the launch of the XUV 3XO, Mahindra is aiming to grab the pole position in the Indian compact SUV market. If not, then it is trying to be at least among the top two carmakers in the segment by 2027, revealed Jejurikar. Besides the aggressive pricing and host of advanced technology-aided features for the SUV, Mahindra is also emphasising the production volume for XUV 3XO to achieve that target.

Slated to be built on the same production line as the XUV400 EV, the Mahindra XUV 3XO is planned to be produced in 9,000 units per month initially, which can be increased up to 10,500 units per month at a later stage, said Jejurikar. “We are currently the fifth largest player in this SUV sub-segment where annual volumes are close to 600,000 units. We want to become the largest or second largest players in the segment in the next three years,” he said.

Mahindra may bring a smaller SUV

The XUV 3XO is Mahindra’s smallest offering at present. But the auto company is not ruling out a smaller SUV, revealed Jejurikar. However, he also stated that going smaller wouldn’t be true to Mahindra’s DNA. Besides hinting that it may bring an even smaller product in the highly competitive and in-demand SUV segment, the Mahindra official didn’t reveal anything else though.

First Published Date: 30 Apr 2024, 08:06 AM IST

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