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Old 5th April 2021, 12:57   #1
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Default Mahindra will not enter sedan & mini SUV segments

Mahindra's recently appointed MD & CEO, Anish Shah has stated that the company will be sticking to larger SUVs and will not enter the sedan, hatchback and small SUV space.

Mahindra will not enter sedan & mini SUV segments-2019mahindraxuv30003.jpg

Mahindra is also planning to add an all-new brand of premium electric SUVs under its Italian subsidiary Pininfarina. The Pura Vision SUV is said to create a new segment called sustainable luxury vehicle (S-LUV) and is due in 2022. The new range of EVs could cost around Rs. 40 lakh.

Mr. Anish Shah took over the top job at Mahindra on April 2, 2021. He replaces Mr. Pawan Goenka, who has retired after more than 27 years with the Mahindra Group.

The carmaker will be launching the second generation XUV500 and the new Scorpio later this year. The former is expected to go on sale around Q3 2021.

Source: ET Auto

Link to Team-BHP News

Last edited by TusharK : 5th April 2021 at 12:59.
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Old 5th April 2021, 13:04   #2
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Default Re: Mahindra will not enter sedan & mini SUV segments

So does this mean end of the KUV, TUV, and XUV 3OO and the likes ? If they say larger SUV's only, then only Scorpio, XUV5OO, and may be Bolero,
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Old 5th April 2021, 13:05   #3
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Default Re: Mahindra will not enter sedan & mini SUV segments

Does this mean XUV300 will not get major updates and will be slowly killed off. Or XUV300 is considered large SUV.

XuV300 has not been doing great since the last few months despite it being a good product.

Or possibly they will launch XUV40O to compete in the creta space
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Old 5th April 2021, 13:06   #4
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Default Re: Mahindra will not enter sedan & mini SUV segments

May be it's a little late now but I don't understand why not? There is still a huge market for the B1 and B2 segment hatches in the country and there are no signs of the segment dying anytime soon. These decisions in my opinion affected and are affecting their market share and aspirations to achieve 2nd position by volume.

Look at Tata Motors - Tiago + Tigor + Altroz makes up a good volume (14,000 to 17000).
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Old 5th April 2021, 13:07   #5
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Default Re: Mahindra will not enter sedan & mini SUV segments

Won't enter the small SUV space? Wasn't Mahindra the one who started the micro-SUV segment?


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Old 5th April 2021, 13:14   #6
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Default Re: Mahindra will not enter sedan & mini SUV segments

Quote:
Originally Posted by condor View Post
So does this mean end of the KUV, TUV, and XUV 3OO and the likes ?
I think he means it's the end of the road for the KUV100 and Verito EV. 'Will not enter' should be read as 'will exit' because Mahindra has two failed products in both segments already.

Mini SUV segment will comprise of TATA HBX and Hyundai AH1.
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Old 5th April 2021, 13:14   #7
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Default Re: Mahindra will not enter sedan & mini SUV segments

Quote:
Originally Posted by TusharK View Post
MD & CEO, Anish Shah

He replaces Mr. Pawan Goenka, who has retired after more than 27 years with the Mahindra Group.
This is what happens when you:

"Replace Car Guys With Bean Counters" (I took this statement from the book "American Icon: Alan Mullaly and a fight to save Ford Motor Company")

So, effectively. Mahindra will be completely exiting the mini SUV and sedan segments. 'Will not enter' is the wrong terminology here, 'exiting' is the right word.

That said, missing the pot of gold to venture into a territory where the volumes are low and margins are high. They may do well with Pininfarina if they launch it as a separate branch, but only Scorpio and XUV will be able to keep Mahindra well afloat in long term? With the competition getting aggressive and denser, it's a bigger risk.

In fact, I would now like to see the pricing of the new XUV and Scorpio. I won't be surprised if Mahindra does away from their formula of attractive pricing now, fat profits shall come from day one after all, isn't it?

PS: I still doubt that they will exit the compact SUV segment too. Probably it's the end of the road for anything below XUV3OO.

Last edited by VKumar : 5th April 2021 at 13:22.
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Old 5th April 2021, 13:16   #8
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Default Re: Mahindra will not enter sedan & mini SUV segments

Good move to conserve resources and deploy them where chances of success are reasonable. With so many decisions in the past going wrong and added pressure due to CoVId, to me this decision makes sense. Can always be reviewed later at a more optimistic time in the future.
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Old 5th April 2021, 13:19   #9
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Default Re: Mahindra will not enter sedan & mini SUV segments

As a customer I never wanted to go with Mahindra either towards Verito or the infamous KUV100 in the past. Better for them to stay with tractors, vans, thars and the kind of it. This is a meaningful confirmation from Mahindra management.
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Old 5th April 2021, 13:37   #10
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Default Re: Mahindra will not enter sedan & mini SUV segments

Quote:
Originally Posted by aniyo View Post
Does this mean XUV300 will not get major updates and will be slowly killed off. Or XUV300 is considered large SUV.
XUV300 will probably stay on.

Quoting from the article:
Quote:
Shah said that the company’s product “strike zone” would start from around Bolero, XUV300, Scorpio, Thar, and moving up to XUV500, and thereafter may stretch up to the new brand under Pininfarina.

Last edited by Nexusios1521 : 5th April 2021 at 13:44.
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Old 5th April 2021, 13:48   #11
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Default Re: Mahindra will not enter sedan & mini SUV segments

Here's an interview with Veejay Nakara. He too clearly states 'No Sedans' & hints towards staying with the successful products like Scorpio, XUV5OO(release between Q2 & Q3),Thar, Bolero etc.



Source : Powerdrift

Last edited by SoumenD : 5th April 2021 at 13:54.
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Old 5th April 2021, 13:49   #12
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Default Re: Mahindra will not enter sedan & mini SUV segments

That's what happens when you bring in a guy who looks at the business from the money side up.
Probably, this is what Anand Mahindra wants him to do - play where you can win.

From the news article:-
Quote:
Shah said that the company’s product “strike zone” would start from around Bolero, XUV300, Scorpio, Thar, and moving up to XUV500, and thereafter may stretch up to the new brand under Pininfarina.
So, they definitely want to stay invested and consolidate their strengths in their successful products till date.
New brand under Pininfarina - well, that's going to be a hit or miss kind of strategy. PF is a global brand known for its strong design capability, but they need an equally strong global manufacturer to pull the entire thing off. Can Mahindra do that actually?

In the meanwhile, the KUV product manager will be putting up his/her resume on job portals.
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Old 5th April 2021, 14:31   #13
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Default Re: Mahindra will not enter sedan & mini SUV segments

What about delivering their existing Thar orders on time. If they were so serious about SUV's , why not increase production of Thar and reduce the waiting time. Mahindra should learn a bit from Tata on product differentiation strategy

Last edited by rahulskumar : 5th April 2021 at 14:40.
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Old 5th April 2021, 15:35   #14
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Default Re: Mahindra will not enter sedan & mini SUV segments

If I read the statement right, it means Mahindra will be sticking to their strengths (macho/rugged SUVs) and avoid competing with the likes of Maruti and Hyundai.
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Old 5th April 2021, 15:39   #15
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Default Re: Mahindra will not enter sedan & mini SUV segments

Quote:
Originally Posted by SmartCat View Post
If I read the statement right, it means Mahindra will be sticking to their strengths (macho/rugged SUVs) and avoid competing with the likes of Maruti and Hyundai.
Agree! And it makes absolute sense too! Portfolio consolidation and playing to one's strengths is the mantra these days, given the current market situation and sentiments. Sounds like the right move to me.

Last edited by cool_dube : 5th April 2021 at 16:09.
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