Small is beautiful, seems to be the new mantra for India's largest utility vehicle manufacturer Mahindra & Mahindra. M&M is all set to launch a mini version of its popular car -- Xylo. The trial production has already begun. The car will be launched in the next two months and is likely to be rolled out of company's new plant at Chakan.
A diesel mini-Xylo is expected to be priced around Rs 5 lakh, making it an attractive option for customers buying premium hatchbacks like Maruti Suzuki Swift, Hyundai's i20 or mid-segment sedans like Tata Motors Indigo. Experts also believe that a more fuel efficient diesel sports utility vehicle (SUV) will be much in demand at a time when petrol price hikes are burning a hole in a car owner's pocket. When contacted, M&M declined to comment. M&M's stock on the Bombay Stock Exchange was down 0.10 per cent at Rs 672.45 from previous close.
Speaking on the potential of such a mini-SUV, Automotive Dealers Association of Maharashtra chairman Sandeep Kumar Bafna said, "It's the package which will be of the essence – for example if a company can come out with a mini SUV wherein the price is Rs 5 lakh to Rs 7 lakh and it is a diesel product with excellent gearbox, engine and performance. For customers, a mini SUV is something that a person can use as an office going car as well as a weekend car."
Currently most 5-seater SUVs like Suzuki's Vitara are priced above Rs 18 lakhs, which many cannot afford. Even Xylo priced around Rs 8 lakhs is out of reach for many customers. A mini-Xylo could become a volume driver for M&M especially when the Xylo faces stiff competition from the popular Toyota Innova in that segment.
Commenting on the sales outlook for this year, M&M's automotive division CEO Rajesh Jejurikar said, "We have a strong portfolio of brands and we have a lot of products in the pipeline to be launched over the next 12 to 18 months. We are sure we will have a good year."
It also makes strategic sense for M&M to launch a mini-SUV as it wants to leverage its strengths in the utility vehicle market. The company is also expected to launch a global-SUV priced above Xylo later this year. In the second quarter of next year, the company will bring cars like Korando and Rexton to India from Korea's Ssangyong Motor after completing market feasibility studies. M&M completed the acquisition of Ssangyong in March this year and will work closely with Ssangyong for new product development and penetrating international markets.
A diesel mini-Xylo is expected to be priced around Rs 5 lakh, making it an attractive option for customers buying premium hatchbacks like Maruti Suzuki Swift, Hyundai's i20 or mid-segment sedans like Tata Motors Indigo. Experts also believe that a more fuel efficient diesel sports utility vehicle (SUV) will be much in demand at a time when petrol price hikes are burning a hole in a car owner's pocket. When contacted, M&M declined to comment. M&M's stock on the Bombay Stock Exchange was down 0.10 per cent at Rs 672.45 from previous close.
Speaking on the potential of such a mini-SUV, Automotive Dealers Association of Maharashtra chairman Sandeep Kumar Bafna said, "It's the package which will be of the essence – for example if a company can come out with a mini SUV wherein the price is Rs 5 lakh to Rs 7 lakh and it is a diesel product with excellent gearbox, engine and performance. For customers, a mini SUV is something that a person can use as an office going car as well as a weekend car."
Currently most 5-seater SUVs like Suzuki's Vitara are priced above Rs 18 lakhs, which many cannot afford. Even Xylo priced around Rs 8 lakhs is out of reach for many customers. A mini-Xylo could become a volume driver for M&M especially when the Xylo faces stiff competition from the popular Toyota Innova in that segment.
Commenting on the sales outlook for this year, M&M's automotive division CEO Rajesh Jejurikar said, "We have a strong portfolio of brands and we have a lot of products in the pipeline to be launched over the next 12 to 18 months. We are sure we will have a good year."
It also makes strategic sense for M&M to launch a mini-SUV as it wants to leverage its strengths in the utility vehicle market. The company is also expected to launch a global-SUV priced above Xylo later this year. In the second quarter of next year, the company will bring cars like Korando and Rexton to India from Korea's Ssangyong Motor after completing market feasibility studies. M&M completed the acquisition of Ssangyong in March this year and will work closely with Ssangyong for new product development and penetrating international markets.
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