According to Rajesh Jejurikar, Executive Director and CEO- Auto and Farm Equipment Sector, M&M, the entire project cost for XUV 3XO stood at INR 650 crore, including capex. With the new launch, Mahindra aims to be among the top two players in the compact SUV segment in the next three years.
“We were waiting to get everything right to the 3XO, which we believe we have done. We are number five in that sub-segment that is the size of 6 lakh and we hope to get to number two or number one position in that,” Jejurikar said.
Talking about the aggressive pricing of the new model, Mahindra noted that it has been able to provide the latest connected features at cost-effective prices compared to all the SUV makers in the country, as it is “the largest buyer of automotive technology in India" and its product portfolio is "more tech savvy than anyone else”.
“We were the first ones to bring ADAS and we buy a large volume of technologies that power connected technologies like our ‘AdrenoX’. A large quantity of silver box- as we call it- enables our trade-offs. We have substantial volumes from the high-end variants of the XUV 700 and Scorpio which are our highest selling models,” said the company official.
Built at Mahindra's Nashik facility, 3XO will be produced on the same production line as the XUV400 EV. The automaker is targeting to produce 9,000 units of the model per month, which can go up to 10,500 units a month with a small investment.
Bookings for the new model will open online and at company dealerships from May 15, with deliveries beginning from May 26.
Currently, XUV 3XO becomes the company’s smallest offering. As of now, it does not plan to bring a smaller model than 3XO because the company “does not do anything which does not match its DNA”.
As per a latest report by research firm Jato Dynamics, Mahindra is the largest SUV maker in terms of revenue, leaving behind Maruti Suzuki, Hyundai, Tata Motors.
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