re: Mahindra XUV700, now launched at 11.99 lakhs A lot of thoughts coming up in mind with these latest developments at Mahindra HQ.
1. I can see another reason why Ford-Mahindra JV didn't work. W601 was supposed to be the first product under this JV with Mahindra's version replacing XUV500 and Ford's version being a little more premium offering. Now when we first started seeing the test mules of Mahindra's W601 I was also one of those who speculated merely by dimensions that this will climb the price ladder and go above 20L price bracket. Interesting to note here is no-one really saw Ford's W601 ever in flesh. For Mahindra the scenario is different as they have lot of options for up to 20L price bracket but they don't have presence above it. Alturas was a failure and they desperately needed its replacement. W601/XUV500 badge is the only option in Mahindra stable that can potentially take on competitors in 20-30L price bracket, crucial differentiator being AWD and all the features. Now once Mahindra started overgrowing W601 to be something that sits just below Alturas it would leave Ford in a precarious situation, Ford has it's successful Endeavour and offering a more premium version of W601 will make it dead on arrival for Ford as it will sit really close to Endeavour base model. I am also assuming that Ford when they pulled out of JV also could have pulled out of W601 development costs which would increase the development cost for Mahindra as it is now their standalone product which will be a further pointer for Mahindra to increase W601 prices.
2. By temporarily discontinuing XUV500 Mahindra has probably given the biggest lifeline to Ford India. Reason being that with Mahindra essentially vacating the 15-20L crossover price bracket the options for buyers looking for a crossover with 7 seater capacity are now limited to Safari (lower trims), Hector Plus and Alcazar each one of them having their own distinct USPs. Ford's upcoming Territory can now sit smack in this segment and enjoy a good share of market piece right from 15-22L market (if they had AWD they could have aimed for up to 25L as well).
3. Scorpio is a bulletproof nameplate in Mahindra's arsenal and they can be assured of it's success pretty much any where they price it as apart from the brand image there really is no other Body on Frame 3-Row SUV now left in the market below 28L price bracket. Scorpio is a success story for Mahindra whenever it is launched.
4. XUV500 replacement - Now XUV500 is not a nameplate that Mahindra can simply retire, It has really good brand recall. The only 2 options Mahindra has is either launch 5 seater version of W601 (will be expensive) or stretch the Tivoli platform to accommodate 3 rows (will be more VFM and can take Alcazar head-on). XUV400 nameplate doesn't seem like a possibility now. This announcement of temporarily discontinuing XUV500 makes all the sense as Mahindra looks to be not yet in fixed mindset on which approach to take for XUV500 replacement.
5. Marazzo - Marazzo was one product in Mahindra stable that was supposed to please everyone and even though it is a good product it ended up being a comparative dud and for all the efforts and money that spent in developing something unique I think the plug on Marazzo will be pulled sooner or later to accommodate upcoming models.
6. Upcoming models of Mahindra - We know that TUV300 twins and Thar 5-door are in development, now where they should be positioned remains a puzzle. Thar 3-door is a standout in Mahindra portfolio, now TUV twins and Thar 5-seater will need to be placed between Bolero and Scorpio, I still doubt Mahindra can pull the plug on their biggest cash cow current Bolero, TUV twins are too green to take on the full expectations of Bolero nameplate. Thar 5-door on the other hand is an interesting case as if there is a 5 door 3 row Thar in the market who will buy the old Scorpio ?
7. Which models will suffer the most at the hands of XUV700 ? I think Tucson will face the most heat with its refresh imminent and XUV700 reaching its price bracket.
8. Who can take advantage of the market ? I think if Renault comes to its senses there is a huge market opportunity bang in front of them. They need to bring the new international Duster with AWD and the Bigster concept to our shores as soon as they can. |