Team-BHP - Mahindra to up exports; start with XUV500 to Europe
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Having seen steady growth domestically in recent months, Mahindra & Mahindra is now looking to step up its export activities as well.

Mahindra has been steadily chipping away Tata Motors’ lead in terms of sales in the past quarter. Mahindra ultimately caught up, outselling Tata Motors in June 2012. Its success was largely attributed to its flourishing Utility Vehicle portfolio.

XUV500 to Europe

The latest product from this UV portfolio, the XUV500, is all set to be exported to Europe from September 2012. In addition, there are also plans to export this SUV to Central and South America by the end of the fiscal year.

Mahindra to up exports; start with XUV500 to Europe-xuv500.jpg

The XUV500 is already being exported to countries like Australia and South Africa. The model has been successful in India since its launch in September 2011. It has already sold 22,544 units in 2012. High demand had delayed export plans for the SUV, prompting Mahindra to increase its production capacity from 4,000 to 5,000 units per month by October.

Export and expansion

Mahindra is India’s largest SUV maker by sales and currently exports models like the Scorpio and Bolero to countries like South Africa, Egypt & Australia. In its quest for global expansion, Mahindra acquired Korean car maker SsangYong Motors and moved unsuccessfully to acquire bankrupt Swedish car maker Saab in 2011. Russia is set to be its next big export destination where its subsidiary Ssangyong already assembles and sells SUVs.

Related thread:

Mahindra XUV500 review

Jeep Wrangler copycat Mahindra Thar not coming to Australia.

Quote:

Following a protracted legal battle, Indian car-maker Mahindra has confirmed it will not bring the Jeep Wrangler copycat – the Thar – to Australia, despite trying to mount a new case to bring the off-roader here.
However, the high-ranking executive left the door open for a future rugged off-roader from Mahindra, but one which would not infringe on the design copyright of the Jeep Wrangler.

Quote:

In the 1950s, Mahindra produced an adaptation of the US Army Willys Jeep under licence, to sell to the public.

That vehicle evolved over the decades to become the current-generation Thar now on sale in India.

However, the Mahindra Thar landed in a legal minefield because the licence was granted for the original Jeep – not its successors – and for India only, not international markets.
Link

Cross posting from the ScorpioN thread as this is a very relevant topic here and now.

ScorpioN is getting launched in Australia and the Automotive media there seems quite impressed with it. It undercuts the competition such as Pajero Sports and Fortuner by a substantial margin and has created a niche price segment for BOF 4X4 SUVs at the 45,000 AUD mark. Mahindra is offering only the Z8 and Z8L Diesel Auto 6 seater variants there.

Price points:
- 42K AUD for Z8 Diesel Auto (22.8 Lakhs INR)
- 46K AUD for Z8L (25 lakhs INR)

These are highly competitive prices compared to the prices in India - almost equal or even a bit less than the price in India. Whereas other manufacturers such as Toyota overcharge heavily in India for cars like the Fortuner when compared international prices. The Fortuner sells for about 55000 AUD (29.8 lakhs INR) in Australia, whereas the same car in India costs above 42 lacs on a comparable 4X4 AT - a whopping 40% more (all prices ex showroom)

Most of the popular reviewers out there are all praise for the ride quality and off road prowess of the ScorpioN. He describes the ride and handling of the Fortuner as being inferior in comparison - a feather in the cap for Mahindra

The reviewers seem a little concerned that the ScorpioN has only got a 5 star rating on Global NCAP, whereas competitors in Australia have a five star from Asia NCAP. They describe GNCAP as an "emerging markets" rating. What they do seem to want to forget is that, just because a car has a 5 star GNCAP, that does not mean that will not be able to get a 5 star on Asia NCAP or Euro NCAP. Mahindra needs to look at getting its cars safety rated by Euro NCAP in the future if it plans to sell its vehicles in international markets more and more.

Of course, the vehicle is also faulted for not having ADAS features in most Australian reviews, which seem to be par for the segment in Australia. This gives me hope that M&M will bring the in-house ADAS tech from the XUV700 to the ScorpioN soon for all global markets and India too. Another complaint in some the reviews I read is about fuel tank capacity in a country like Australia, where people drive long distances between cities, or to tourist and off-road destinations, the 57L fuel tank is too small for this class. M&M needs to provide a minimum of a 70L fuel tank.

Some of the other reviews I read from Australia do criticize the relatively lower power output especially torque output of the ScorpioN, in comparison to competitors such as the Fortuner. The 400 NM of torque that the ScorpioN provides is a full 100 NM less than what the Fortuner offers. I am still unsure why M&M chose to offer the highest tune of the 2.2 MHawk, with 450 NM of torque, in the XUV700 - which does not have a proper full time 4WD with low range gearbox, nor as many towing applications as the ScorpioN. However, they limited the torque from the same engine and gearbox at 400 NM in the ScorpioN. In my opinion, it should be the other way round - with the four by four ScorpioN outputting the full 450 NM, which would place it not too far behind the Fortuner.

I expect that the vehicle has very good chances of success in market such as Australia, South Africa and Latin America. It will be able to open up and compete in a substantially lower price bracket then the Global pick-up truck based SUVs such as the Fortuner, MUX, Pajero Sport and the Endeavour. What will then happen to delivery lead times in India is anybody's guess as it is likely that the company will prioritize Global growth and expansion over selling a few thousand more of the same SUVs in the Indian market.


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