The next generation Mahindra Scorpio and XUV500 are expected to move a few notches up the market compared to their predecessors
The steady rise of compact crossovers over the recent years and entry of new brands like Kia and MG in this sector has been pressurizing Mahindra’s once dominant market share in India’s SUV market. Currently, the Indian automaker finds its SUV market share to be the lowest in a decade and is preparing a product onslaught to power itself out of this situation.
Old and new models to co-exist?
Mahindra’s future strategy is to stick with its core competence of making rugged SUVs with all-terrain capabilities even though the compact soft crossovers are becoming more and more popular. In other words, the company wants to position itself as the go-to brand for true-blue SUVs in the country.
Economic Times reports that the next generation Mahindra Scorpio and XUV500 which are in the advanced stages of development are going to co-exist with their respective predecessors in all likelihood, because the current models are still reasonably popular and have some life left in them. This also means that the new gen versions would be significantly more premium to sufficiently differentiate themselves.
Speaking to Economic Times, Rajesh Jejurikar, Executive Director, Mahindra & Mahindra auto and farm equipment sector, stated that the company will not go after market share and into the segments where the brand doesn’t have a competitive edge (like sub-4 meter SUV segment). He added that Mahindra wants to have a distinct and sharp positioning.
Mahindra is looking to develop into a specialized and differentiated brand which prioritizes profitability than outright market share. The keywords modern, urban and youthful are going to be the important aspects of brand transformation. The new Scorpio and XUV500 are expected to market the beginning of this transformation.
What to expect from 2021 Scorpio and XUV500?
If the new Thar is anything to go by, the next generation Mahindra Scorpio and XUV500 can be expected to offer significantly better equipment levels. Both the vehicles are expected to be introduced in the first half of next year. The company is also planning to manufacture around 3,000 units of the new Thar every month which is more than double the volume of the previous gen model.
Moving further, Mahindra is working with Ford on a new B-segment crossover to take on the likes of Kia Seltos and Hyundai Creta. However, the product in question is not expected to be ready before 2023.