India’s top utility vehicle maker, Mahindra & Mahindra, has announced the name for their world SUV as XUV 500. It will be launched in the domestic market and South Africa by December end. The company, which sells MUVs such as Bolero, Xylo and Scorpio, will position the new vehicle above Scorpio, aiming to create a new SUV segment with the vehicle.
“We plan to sell the XUV 500 in India and South Africa before its introduction in other global markets. I am confident that the XUV 500 will follow the footsteps of its illustrious predecessors to evolve into an iconic brand,” M&M President for Automotive and Farm Equipment Business Pawan Goenka said.
Mahindra is looking to position the XUV 500 between the Scorpio and the premium SUV range like the Toyota Fortuner, Chevrolet Captiva, Mitubishi Outlander, Honda CR-V and more. With no manufacturer present in that segment Mahindra XUV 500 will be the first in this segment.
The market for SUVs below Scorpio is around 3 lakh units annually, wherein there are offerings like Bolero, Xylo, Safari and Innova. The market size for SUVs which are above Rs 20 lakh is just about 25,000 units.
“We wish to create an entirely new category to bridge this huge gap,” said Vivek Nayer, senior vice-president – marketing, automotive sector at M&M.
M&M intends to position the product in the premium segment and has set up a separate assembly line at its Chakan plant near Pune. The company, however, did not divulge the investment on product development and the capacity it has created for the product.
