Mahindra Aims New XUV500 at Premium-SUV Market

Mahindra & Mahindra unveils its XUV500 in a bid to expand its commanding 60.5% share of India’s SUV market.

The auto maker invested Rs6.5 billion ($111 million) in developing what it calls a new category in the premium-SUV segment, both in terms of features and price.

“All research and development activities for the XUV were aligned with global standards of quality, technology, testing norms, regulations and emissions from the very start,” says Rajan Wadhera, chief executive-technology.

The front-wheel-drive vehicle’s 2.2L transverse-mounted, turbocharged diesel engine delivers 140 hp and 243 lb.-ft. (330Nm) of torque. Mated to a 6-speed transmission, fuel efficiency is 35.5 mpg (6.6 L /100 km).

Prices for the 4x2 and 4x4 variants range from Rs1.08 million to Rs1.29 million ($24,000-$28,600).

Mahindra says the XUV’s nearest price competitor in the premium SUV segment is the Ford Fortuner at Rs1.7 million ($34,600).

The XUV meets European environmental and crash-test standards, and features include ABS, hill ascent and descent control, GPS and driver information, touch-screen multimedia and full iPod connectivity.

It is also one of the lightest SUVs in its class.

"Mahindra’s team deployed alternative thinking to deliver high level of technology and performance at an unbeatable price," says Anand Mahindra, vice chairman and managing director. “It’s a bold step towards a global recognition for the XUV brand.”

The XUV500 soon will launch in South America, Australia and South Asia Association for Regional Cooperation countries.

Pawan Goenka, president of both Mahindra and the Society of Indian Automobile Manufacturers, estimates exports will comprise 20% of sales.

Mahindra also says it will invest Rs18 billion ($400 million) over the next seven years to establish a testing facility Cheyyar in Tamil Nadu state.

But Goenka says the auto maker for now is focusing on adding to its Chakan manufacturing complex.