Mahindra climbing towards rank 2 driven by the success of Scorpio N

It has a strong pipeline for 2024 and expanded the production capacity at the Pune (XUV700, Bolero, Scorpio N) and Nashik (3XO, Scorpio & Thar) plants, with ongoing expansion to reach 6 lakh units per annum.

BHPian pqr recently shared this with other enthusiasts.

The fight for the #2 position has intensified in 2024, with Mahindra coming into the race driven by the super success of Scorpio N in 2023.

#2 Hyundai

No further new product iteration (new product or new generation of existing product or facelift of existing generation) is expected, except for the Alcazar facelift, which will mostly be in line with the Creta facelift. However, the Alcazar facelift isn’t going to be big on volume due to its small 1.5L petrol and diesel engines and poor space in the second and third rows compared to bigger competitors like the Mahindra XUV 700 and Tata Safari.

#3 Tata

Has lined up a new product in the form of the Curvv (~4.3m monocoque crossover segment) with multiple drivetrain options and a BEV version of the Harrier somewhere around the festive season. This could plausibly add 3,000-4,000 units per month towards the tail end of the year.

However, another challenge Tata is facing right now is lower than expected sales of Harrier and Safari facelift, which are back to square one. Because in the same segment, the Mahindra XUV 700 still has a better value proposition due to multiple refined and powerful drivetrain options, better in-cabin space, an equivalent list of bells and whistles at a very competitive price point, and not to forget, considerably better reliability.

#4 Mahindra

Now has a strong pipeline for 2024 and expanded production capacity at the Pune (XUV 700, Bolero, Scorpio N) and Nashik (3XO, Scorpio & Thar) plants, with ongoing expansion to reach 6 lakh units per annum. Facelift of rebranded XUV 3XO (earlier 300) is planned with 9,000 units per month for the remainder of 2024 and will be later joined by the very promising Thar 5-door version slated to be launched on 15th August 2024. Further XUV 700’s EV version could join the BEV race by the festive season.

Moreover, Mahindra earns higher revenue per car sale than the top three players due to its UV product range, which is positioned in a higher price band.

On a side note

  • Indian market is in a highly consolidated state, as the top 6 players still command a 93% market share.
  • Skoda, Citroen, and Jeep sales are in free fall.

Here's what GTO had to say about the matter:

Beautiful analysis, thanks for sharing!

  • What's most & more important is Mahindra's average selling price per car. It only has SUVs, Crossovers & UVs on sale and hence, Mahindra's average ticket price is higher than compatriots. Mahindra tried their hand at hatchbacks & sedans, then realised their core competence is UVs, so ditched the cheaper cars altogether.
  • Equally, because Mahindra doesn't sell too many sub-4 meter cars, I don't think they will overtake Hyundai or Tata. At least not consistently.
  • This growth in 2024 is also from the release of pent-up demand. Example, there were long waiting periods for the XUV700, but the backlog has been cleared.
  • Next hit is the 4-door Thar. Although I do think it's going to take some Scorpio-N customers away. XUV700 is getting long in the tooth and desperately needs a facelift.

Mahindra is doing a fantastic job with SUVs & Crossovers. From the 3XO to the Thar, and the Scorpio-N to the XUV700, they all really impress. IMHO, Mahindra should take another shot at the MPV segment. The Marazzo was a fantastic van which failed due to poor product management, rather than the car itself.

Here's what BHPian Cliff9091 had to say about the matter:

The 5-Door Thar launch will be interesting to see how Mahindra prices it with its product portfolio in mind. The Scorpio-N upon launch I thought would cannibalize the sales of the XUV700 but it did not dent the sales of the 700. I don't think so the same can be said for the 5-door Thar, it surely will eat into 4x4 Scorpio-N sales. Eagerly waiting to see how M&M's pricing, marketing and product positioning play out with the Thar 5 door.

Great analysis as usual pqr!

Here's what BHPian Carma2017 had to say about the matter:

I do not think that TATA will be in the situation as predicted. TATA has an enviable line up of announced and unannounced vehicles that they have or may not have disclosed in totality including new CNG variants etc. On the contrary, I think TATA will now push harder towards beyond #2 as their EV variants start gaining more traction, due to the government's lack of action in hybrids and improved charging networks.

Also, I do not believe that Mahindra 5-Door Thar will draw significant volumes. It just doesn't have the swag of a 3-Door version. At best it can cannibalise the Scorpio-N.

If it does happen the way BHPian pqr has predicted, then it will be a shocker.

Here's what BHPian FiatDiesel had to say about the matter:

Between Tata and Mahindra, I will put my money on the latter any day as it does have better quality products with multiple & fantastic drivetrains. In our forum, we have not heard negative feedback and with the latest launch of 3XO, it has registered in the minds of buyers as a serious option to be considered.

I was literally tempted to buy 3XO despite no immediate need, finally, the head ruled over the heart. My heartstrings don’t get pulled in a similar way for any of the Tata launches. Somehow I feel TaMo has lost out on the engineering front with a lack of engines and quality while the evaluation of products in Mahindra stable reflects their commitment to Indian consumer needs and enthusiasts. XUV700, Scorpio N, 3XO, Bolero including NEO and mighty Thar with the gem of mHawk diesel and most powerful petrol without any horror stories make me proud.

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