PrancingHorse

Low spec W4 variant of the XUV500 launched

Recommended Posts

post-7692-0-49255400-1368526135.jpg

Mahindra & Mahindra (M&M) will be launching a low spec W4 variant of the XUV500 within the next few months. We all know that the XUV has been crippled with niggling issues and sales have dropped in recent times. Plus the Renaut Duster has made life difficult for the XUV and the soon to launch Ford Ecosport could dent the XUV further.

I think this could be a good move since a low spec model with have less electronic gadgetry and a price similar to the Duster could to well to help the XUV climb up the sales charts again

What do you think?

Source: Team BHP

Share this post


Link to post
Share on other sites

It seems to be desperate measure to check sliding XUV sales due to Duster and upcoming Ford ES.

However, M&M and even Tata should understand that a product won't continue to sell in market just because it's VFM.

They need to focus on producing niggle free vehicles and sales shall follow automatically.

Share this post


Link to post
Share on other sites

I always wanted MM to do so, now it was forced by sales impact. Agreed with PH, low gadgetry would mean lesser niggles & in-turn happier consumers.

With this MM will also have to work on pricing front, they had raised the prices of XUV as demand rose, now that demand has flattened, a fresh pricing strategy should be employed. Ideal situation would be to plonk the lowest variant bang in the Duster, Eco-Sport territory.

Share this post


Link to post
Share on other sites

What they need is a new vehicle , New Scorpio , such price cut products will not get them anywhere ,these are just time buying tactics until a new product is launched from them so that people do not completely forget their product.

Price cut is the first sign of a failed product and who wants to buy a failed product.

They need to be back to the drawing board.

Share this post


Link to post
Share on other sites

The success of this low end version will solely depend on how M&M strategize their pricing which will play a very crucial role in the selling number. And the launch of the Ford ES will also create a big impact on both the XUV & the Duster before which M&M have to get things sorted out! All we can do is wait and watch as to how M&M take their next big step on the low-spec XUV500! Cheers.

Share this post


Link to post
Share on other sites

The car is a beautiful piece if art (in my opinion) and that makes it very desirable. While the low spec version would increase sales, the car would start to get common and those investing in the high spec versions would loose out on the exclusivity of the SUV. Develop new products with a similar design philosophy and competitive pricing and Mahindra would be the "SUPREME" ..

Share this post


Link to post
Share on other sites

I agree to some extent that a stripped down variant of XUV5oo will be denting its own image, but i do not see taxi segment would jump in for this car.

Further, M&M's strategy for tackling Duster seems to be right for me, as people dont get goodies in Duster as much as in XUV but still people are loving it. April month sales figures show only Duster was able to score growth. So from a market strategy point of view, any company like M&M would like to bring its product (which is in straight competition with Duster) to compete 1-on-1 with rival.

Share this post


Link to post
Share on other sites

Pravin Shah says that customer feedbacks are being included in the stripped down version of XUV which has lost major ground to newer entrants.

Also six different power trains (petrol and diesel) are being developed along with SsangYong for heart transplant surgeries in future models.

Share this post


Link to post
Share on other sites

So, we got the upcoming Scorpio's diesel engine's outline.

The upcoming XUV E4 & All new Scorpio to bear 2L Diesel engine.

The Bi-turbo'd Quanto's engine can be tuned for Lower variants of Scorpio.

But this leaves 2.2 only for XUV top variants, will M&M do that?

Share this post


Link to post
Share on other sites

Here's something I was reading...

Mahindra plans to launch at least 3 new SUVs by 2015-16 including a compact SUV and a refreshed Scorpio

Domestic SUV heavyweight Mahindra & Mahindra is gearing up to fight it out against multi-national challengers who look to take on its dominance in the Indian market. The Indian auto major is set to unleash an SUV blitzkrieg and plans to drive in at least three all-new off-roaders by 2015-16, apart from bringing in major refreshments on existing products, including old warhorse Scorpio.

The push from India's biggest SUV/UV maker comes at a time when it stares at one of its biggest challenges in the market in view of the growing competition from new products like Renault Duster, Maruti Suzuki Ertiga and Ford Eco Sport, and this is expected to only get stiffer as Toyota, Hyundai, Volkswagen, Nissan and Maruti launch new products.

Pawan Goenka, president of M&M's automotive division, told TOI here that the company is working on a slew of new vehicles, some with Korean subsidiary Ssangyong, as it wants to modernize and broaden offerings in the market. The new line-up will stem from two fresh platforms that the group is developing (one each by M&M and Ssangyong).

The company's idea is to roll out more of crossovers, which are broadly vehicles built on a car platform but carrying the design and features of an SUV. Crossovers drive and handle similar to a car and unlike the body-on-frame structure of traditional SUVs, they have a unibody construction.

Interestingly, the company is working on the new vehicles as part of its push to produce more "compact vehicles", which will be products under four meters in length and having engine capacity under 1500cc in diesel and under 1200cc in petrol. This would ensure that the company manages to get lower excise duty on these vehicles, which will help keep their prices competitive.

"We will have more smaller vehicles, more compact vehicles," Goenka said, adding that the focus would be on the company's traditional stronghold of SUVs and UVs. Sources, however, said the new platforms will also be used for bringing out compact cars where the company now only has a lone product in the Vibe, a vehicle carved out of its failed JV with French carmaker Renault. Goenka refused to confirm the speculation on small cars, but did not deny it also.

With increasing focus of global and domestic automakers on the fast-growing Indian SUV market, including compact off-roaders, Mahindra is fully aware of the need to refurbish its portfolio with newer contemporary products. As part of this initiative, the company is also looking at setting up a new engineering and design centre in Europe, which will help it develop more stylish and modern products that carry a global appeal.

Goenka said one of the new platforms will be a joint initiative between M&M and Ssangyong, and this will lead to new products for both the companies. This new platform should start churning out vehicles towards 2015-16 fiscal, which will include a compact SUV that will be placed under the Scorpio and thus priced comfortably under the Rs 10-lakh mark.

The other product that the Indian company will get is from a new platform which SsangYong is developing - a new SUV, currently codenamed X100. This should also be out in the next two years. Apart from this, Mahindra also has plans to bring out a new compact sub-four meter SUV to stand along the Quanto, which was carved out of the Xylo MPV and has increasingly been facing a tough time in the market.

Refreshments to the Scorpio are on the anvil, and the company feels that the product has relevance in the market considering that it was the highest-selling SUV recently.

Overall, the line-up in the SUV segment is about to get fatter as new products are planned by Maruti Suzuki, Hyundai, Toyota, Volkswagen, Nissan and Renault in the coming years.

Source: Zigwheels

Share this post


Link to post
Share on other sites

No new offering from Mahindra till 2015 , so all these testing will go on till 2015

I think it's a good move by Mahindra.

They had pushed too hard in past to offer new products too soon thereby losing focus on quality control.

They would have learned a lesson or two seeing the reason for drop in demand of their products (particularly XUV).

Hope this move will produce better quality products from them in future.

Share this post


Link to post
Share on other sites

Well I think the above M&M strategy to not to introduce any new car till 2015 is a douple edged sword. Though this will help them to fix quality issues with XUV and design new engines but on the other hand it will leave the space open for other manufacturers in the market to crack the share of the Indian SUV maker.

Ironically, M&M might try to strenght up Sanyong brand in this time frame.

Share this post


Link to post
Share on other sites

Even if they are not bringing any NEW models, I am sure they will consider launching the base variant W4. As far as time is concerned, they had taken enough time on the XUV since start of the project. Probably the fastest to markets were Quanto and Vibe. Surely they need a break of couple of years before launching new vehicles, as first they have to make the existing investments count for before looking at new investments.

The high cost structure of Automobile business in India is really taking a toll on the manufacturers (especially the Indian). As the product life cycle has reduced drastically. Bolero and Scorpio are luckily there for M&M's advantage, where i believe they would have recovered investments long ago and reaping profits from it. They did not invest much in Quanto and Vibe, while the Xylo platform has Genio pickup also apart from Xylo and Quanto. The real test is for XUV. They will surely be looking at more nos on XUV platform, as it may not last that long in the life cycle as the Bolero, Scorpio.

They cant probably go UP on the value chain, then the only option is to go a step down on the value chain and offer a base variant on XUV..

Share this post


Link to post
Share on other sites

I think the XUV 5oo is needing a welcome facelift to entice buyer because the extrovert styling is not to everyone's taste and a subtle change in the agressive styling to make it bolder can see a bit more sales. Also it will be a good time to introduce the W4 then and an AWD W6.

Share this post


Link to post
Share on other sites

Looks like the W4 is ready for launch . Here is a scan of the feature list from the brochure which mentions a W4 variant

post-7692-0-62187900-1380861887_thumb.jp

In a nutshell here are the features omitted from this variant:

  • 6-inch touchscreen infotainment display
  • DVD player
  • Tyre pressure sensor
  • Parking assistant
  • Rain sensing wipers and light sensing headlamps.
  • Telescopic steering
  • Fully-automatic temperature control
  • Power-folding side mirrors
  • Premium fabric upholstery.
  • Cruise control,
  • Multi-function steering wheel,
  • Illuminated key ring
  • Camping lamp
  • Puddle lamps
  • Door ajar lamps.

It will be interesting to see what the pricing will be like

Pic source: Indianautosblog

Share this post


Link to post
Share on other sites

That looks quite a stripped version, more like XUV500's version of the Xylo D-series. :( :( :(

I am sure people who bought the XUV due to its premium look and brand value wont like this move by Mahindra.

Share this post


Link to post
Share on other sites

That is really striped down !!!

Anyways not a bad move. They will price it competitively now. This will help to keep a low starting price to get the customer in the showroom, then he might just end up spending that extra bit and go for W6, for those who are mainly lured by the exterior looks of the XUV will go for W4.

We have seen in Indian market that going up the value chain has not always yielded desired results for cars. At the same time there are very few cars which have actually benefited from going down the value chain. The only success story i could remember is Versa/Eeco. But that was a different case as Versa was failure and Eeco reversed it. Here XUV has seen the highs but now on a stagnant phase. From here on decline is possible with new product launches. While M&M must be aiming at high growth with the new variant, but it might just delay the decline.

Share this post


Link to post
Share on other sites

What is the price difference between the W4 and W6? Looking at the amount of features stripped out I expect the W4 to be atleast 1.5 lakhs cheaper than W6. Also is there going to be a AWD in W4?

Share this post


Link to post
Share on other sites

Yes it should be approx 1.5 lac below W6. There is difference of about 1.5 Lacs between W6 and W8 as well and the 4WD is 1 lac plus on W8.

Most probably they will offer 2WD only on W4, because the cost of 4x4 would be approximately 1 lac above the 4x2. .

Share this post


Link to post
Share on other sites

Is this variant aimed towards the taxi segment ? Exclusion of features like Entertainment system, DVD, Parking sensors, lights, etc... are understandable but removing Telescopic steering, etc. doesn't go down well with me. Hope ABS is still there.

Share this post


Link to post
Share on other sites

I'd say a good move by Mahindra.

Entry level variants does attract buyers from nearby segments also. Even one of my friend was keenly waiting for its base variant, after i told him that its coming. He just wants a XUV500, nothing special features just he wished ABS & Airbags.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now