Mahindra says no to all-new cars until FY2016

JayPrashanth · 26th August 2013, 09:58

Link to News Section

Indian car and utility vehicle maker Mahindra & Mahindra plans to go slow on new product launches for the next couple of years. While the Reva E2O and the Verito Vibe hatchbacks were launched earlier this year, Mahindra doesn't have plans of launching any new product over the next year or so. According to a report on BusinessStandard, the automaker plans to launch refreshed versions and facelifted models of its existing products until 2015, after which all-new products will be launched.

Mahindra says no to all-new cars until FY2016-2014-mahindra-verito-electric-sedan.jpg

Moving to the new variants that Mahindra could launch in the next year or so, the likes of the Scorpio and the Bolero could be refreshed while the Verito could get an electric variant. The electric variant of the Verito will be launched only if the Indian government reinstates the now-withdrawn direct cash subsidy for electric cars. The withdrawal of this subsidy has meant that the Reva E2O electric car has been a poor seller. Until the subsidy situation changes, the launch of the Verito Electric seems unlikely.

These announcement from Mahindra come at a time when the Indian car industry is going through a protracted slowdown, with car sales shrinking amid gloomy economic conditions. However, the automaker will continue to invest on new product development, with a 10,000 crore rupee war chest earmarked for setting up a new factory at Chennai, and coming up with new cars. Mahindra isn't the only automaker in India to go slow on new product launches.

Tata Motors is another Indian automaker, who has planned to keep the numbers ticking with refreshes of existing products and new variants, until the first crop of all new cars begin arriving in 2015 and beyond. Similarly, Volkswagen and Toyota are two other car makers who have announced that all-new products for the Indian car market will be launched only after 2015. By the looks of it, 2015 seems to be the crucial year, after which many car makers operating in India, plan to launch a major new product blitz.

gaurav_3000ad · 27th August 2013, 11:40

Mahindra seems to be waging a war on three fronts :-
1) The slowdown in the indian domestic car market
2) No mass volume pusher in the A, B or C segment - the verito and its hatchback sibling are proving to be a tuffer ask than selling a sailor a pitcher of sea water
3) Dwindling interest in their flagship the XUV500 as evinced by the monthly sales analysis

A new product always draws crowds to dealerships which in turn helps the entire portfolio to some extent.

The bolero does seem to have its work cut out. The improved XUV 500 too should be a much needed shot in the arm. Lets see if their strategy is good enough to tide them over to 2016.

Rehaan · 27th August 2013, 14:34

Recently I was chatting with a gentleman who was telling me about Magna.

Magna is the most diversified manufacturer for automobile systems, ranging from in-car electronics to powertrain systems, seating and even developing chassis. They supply directly to auto OEMs.

They have a plant in Pune where they are setting up chassis welding for the new Mahindras. They are aiming to push out the first chassis by November 2013. He said it would probably be the Bolero. There will be 8 chassis variations (this might also include small variations for crash test countries). The manufacturing would make use of fully robotized welding that he said would put the Mahindra chassis a step ahead of anything else here, as well as a huge jump over the current chassis construction. The plant has a capacity of 200,000 units.

cya
R

k_ajay · 27th August 2013, 18:45

Need of the hour from Mahindra. They better concentrate on fixing the issues on their 4 wheeler(s) and imporing part(s) quality, instead of focusing on new products, leading to more customer dissatisfaction.

Stratos · 27th August 2013, 19:18

The S101 small car should be coming out by mid or end 2015, which in a way could be advantageous for Mahindra as they can study the small car market till then, as the S101 would be their very first small car offering (I am not counting the Vibe). The requirements of the small car market change periodically with features from higher class cars slowly making their way into little hatchbacks, and the S101 would be their next all new ground-up designed and developed vehicle to enter the market.

This 'slightly late-launch' strategy helped Mahindra during the XUV development too, since they could observe how the Aria performs, which was launched almost an year before and then beat it on price and features. Remember, the XUV was also Mahindra's first step into the mid-premium SUV segment.

Plus, it is about time the XUV5OO gets a facelift, now that Mahindra is slowly trying to eradicate the niggles associated with it, as it will be 2 years old in October 2013

Quote:

Originally Posted by Rehaan

They are aiming to push out the first chassis by November 2013. He said it would probably be the Bolero.

As far as I know, the new Bolero will continue to have a ladder-by-frame chassis, since the market it is intended for requires a robust yet cheap construction.

SPIKE ARRESTOR · 27th August 2013, 23:10

Quote:

Originally Posted by Rehaan

The manufacturing would make use of fully robotized welding that he said would put the Mahindra chassis a step ahead of anything else here, as well as a huge jump over the current chassis construction.

Am I made to understand, that mere change of welding technology is pioneering the efforts to improve crash behavior of newer chassis assemblies?

Spike

gopu.g · 27th August 2013, 23:44

Now that's M&M waking up to quality. With all those niggles they are facing in their machines, I believe it's high time for them for process improvements and refine the vehicles they have in the market now. Good going M&M.

teamveevee · 27th August 2013, 23:49

Quote:

Originally Posted by JayPrashanth

However, the automaker will continue to invest on new product development

Also keep in mind that M&M has to fight the war on all fronts, Mahindra Navistar with a loss of ~900 crores is being merged with M&M. Mahindra ICVs need to be upgraded to match the new offerings from TM and BB. M&M has to spend the money wisely. What about the Scooters/Bikes division. In crunch situations, too much diversification can hurt the company as a whole.

Rehaan · 27th August 2013, 23:56

Quote:

Originally Posted by SPIKE ARRESTOR

Am I made to understand, that mere change of welding technology is pioneering the efforts to improve crash behavior of newer chassis assemblies?

Not sure where you got the part about specifically improving crash behaviour... though i'd be keen to hear your take on that.

From what he said, there would be an improvement in rigidity and chassis strength, along with a massive improvement in tolerances (over the currently produced chassis).

cya
R

SPIKE ARRESTOR · 28th August 2013, 00:15

Quote:

Originally Posted by Rehaan

Not sure where you got the part about specifically improving crash behaviour... though i'd be keen to hear your take on that.

Oops, sorry, that was from a cross posting in another thread where crash behavior was being discussed. I mixed it up a bit.

Spike

ampere · 28th August 2013, 08:07

So no 5-seater SUVs from their stable that would make its way to the market.
Hope they are not too late by then.

JayPrashanth · 28th August 2013, 11:49

Quote:

Originally Posted by teamveevee

Also keep in mind that M&M has to fight the war on all fronts, Mahindra Navistar with a loss of ~900 crores is being merged with M&M. Mahindra ICVs need to be upgraded to match the new offerings from TM and BB. M&M has to spend the money wisely. What about the Scooters/Bikes division. In crunch situations, too much diversification can hurt the company as a whole.

Mahindra Two Wheelers is really struggling. And if a two wheeler maker gets "excited" about 30,000 bookings in India, you know what the situation is like for M2W.

Quote:

Originally Posted by Rehaan

Not sure where you got the part about specifically improving crash behaviour... though i'd be keen to hear your take on that.

From what he said, there would be an improvement in rigidity and chassis strength, along with a massive improvement in tolerances (over the currently produced chassis).

cya
R

The next-gen U301 Bolero could feature a hydroformed body-on-ladder chassis. The big change is the hydroforming bit I guess.

Cheers,

Jay

Philistine · 29th August 2013, 01:33

Quote:

Originally Posted by Rehaan

Recently I was chatting with a gentleman who was telling me about Magna.

Magna is the most diversified manufacturer for automobile systems, ranging from in-car electronics to powertrain systems, seating and even developing chassis. They supply directly to auto OEMs.

Oh! This makes me take a step back and probably wait to see what Mahindra does with the Bolero. I was considering getting myself the Bolero this week or the next!

condor · 29th August 2013, 08:00

But then, Mahindra's last all new passenger vehicle was the XUV. The Vibe is just a chop-job of the Verito

SDP · 29th August 2013, 08:30

Tatas are already suffering because of their strategy (or is it incompetence?) of no-new-launches-for-multiple-years. Its ill-conceived, if the news is actually true for Mahindras.

XUV was launched in Oct'2011. If next "all-new" car is in FY16, its just too late. Chop-jobs and minor facelifts might not be able to sustain their market share that long.

26th August 2013, 09:58	#1
JayPrashanth Senior - BHPian Join Date: Oct 2008 Location: Bangalore/Goa Posts: 1,302 Thanked: 2,074 Times	Mahindra says no to all-new cars until FY2016 Link to News Section Indian car and utility vehicle maker Mahindra & Mahindra plans to go slow on new product launches for the next couple of years. While the Reva E2O and the Verito Vibe hatchbacks were launched earlier this year, Mahindra doesn't have plans of launching any new product over the next year or so. According to a report on BusinessStandard, the automaker plans to launch refreshed versions and facelifted models of its existing products until 2015, after which all-new products will be launched. Moving to the new variants that Mahindra could launch in the next year or so, the likes of the Scorpio and the Bolero could be refreshed while the Verito could get an electric variant. The electric variant of the Verito will be launched only if the Indian government reinstates the now-withdrawn direct cash subsidy for electric cars. The withdrawal of this subsidy has meant that the Reva E2O electric car has been a poor seller. Until the subsidy situation changes, the launch of the Verito Electric seems unlikely. These announcement from Mahindra come at a time when the Indian car industry is going through a protracted slowdown, with car sales shrinking amid gloomy economic conditions. However, the automaker will continue to invest on new product development, with a 10,000 crore rupee war chest earmarked for setting up a new factory at Chennai, and coming up with new cars. Mahindra isn't the only automaker in India to go slow on new product launches. Tata Motors is another Indian automaker, who has planned to keep the numbers ticking with refreshes of existing products and new variants, until the first crop of all new cars begin arriving in 2015 and beyond. Similarly, Volkswagen and Toyota are two other car makers who have announced that all-new products for the Indian car market will be launched only after 2015. By the looks of it, 2015 seems to be the crucial year, after which many car makers operating in India, plan to launch a major new product blitz. Last edited by JayPrashanth : 26th August 2013 at 10:03. Reason: News Link Added
	(6) Thanks

27th August 2013, 11:40	#2
gaurav_3000ad BHPian Join Date: Aug 2007 Location: Delhi's belly Posts: 93 Thanked: 392 Times	Re: Mahindra says no to all-new cars until FY2016 Mahindra seems to be waging a war on three fronts :- 1) The slowdown in the indian domestic car market 2) No mass volume pusher in the A, B or C segment - the verito and its hatchback sibling are proving to be a tuffer ask than selling a sailor a pitcher of sea water 3) Dwindling interest in their flagship the XUV500 as evinced by the monthly sales analysis A new product always draws crowds to dealerships which in turn helps the entire portfolio to some extent. The bolero does seem to have its work cut out. The improved XUV 500 too should be a much needed shot in the arm. Lets see if their strategy is good enough to tide them over to 2016.
	(1) Thanks

27th August 2013, 14:34	#3
Rehaan Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 24,039 Thanked: 34,069 Times	Re: Mahindra says no to all-new cars until FY2016 Recently I was chatting with a gentleman who was telling me about Magna. Magna is the most diversified manufacturer for automobile systems, ranging from in-car electronics to powertrain systems, seating and even developing chassis. They supply directly to auto OEMs. They have a plant in Pune where they are setting up chassis welding for the new Mahindras. They are aiming to push out the first chassis by November 2013. He said it would probably be the Bolero. There will be 8 chassis variations (this might also include small variations for crash test countries). The manufacturing would make use of fully robotized welding that he said would put the Mahindra chassis a step ahead of anything else here, as well as a huge jump over the current chassis construction. The plant has a capacity of 200,000 units. cya R Last edited by Rehaan : 28th August 2013 at 00:01.
	(3) Thanks

27th August 2013, 18:45	#4
k_ajay Senior - BHPian Join Date: May 2005 Location: Bangalore Posts: 1,379 Thanked: 1,138 Times View My Garage	Re: Mahindra says no to all-new cars until FY2016 Need of the hour from Mahindra. They better concentrate on fixing the issues on their 4 wheeler(s) and imporing part(s) quality, instead of focusing on new products, leading to more customer dissatisfaction.
	() Thanks

27th August 2013, 23:44	#7
gopu.g BHPian Join Date: Aug 2013 Location: Kochi. Posts: 28 Thanked: 4 Times	Now that's M&M waking up to quality. With all those niggles they are facing in their machines, I believe it's high time for them for process improvements and refine the vehicles they have in the market now. Good going M&M.
	() Thanks

28th August 2013, 08:07	#11
ampere Team-BHP Support Join Date: Sep 2009 Location: Bangalore Posts: 17,930 Thanked: 12,901 Times View My Garage	Re: Mahindra says no to all-new cars until FY2016 So no 5-seater SUVs from their stable that would make its way to the market. Hope they are not too late by then.
	() Thanks

29th August 2013, 08:00	#14
condor Distinguished - BHPian Join Date: Jun 2006 Location: Speed-brkr City Posts: 15,864 Thanked: 16,008 Times View My Garage	Re: Mahindra says no to all-new cars until FY2016 But then, Mahindra's last all new passenger vehicle was the XUV. The Vibe is just a chop-job of the Verito
	(1) Thanks

29th August 2013, 08:30	#15
SDP Team-BHP Support Join Date: Jan 2010 Location: Mumbai Posts: 4,737 Thanked: 11,279 Times	Re: Mahindra says no to all-new cars until FY2016 Tatas are already suffering because of their strategy (or is it incompetence?) of no-new-launches-for-multiple-years. Its ill-conceived, if the news is actually true for Mahindras. XUV was launched in Oct'2011. If next "all-new" car is in FY16, its just too late. Chop-jobs and minor facelifts might not be able to sustain their market share that long.
	(1) Thanks