Mahindra has revealed that the next gen XUV500 and the Scorpio will coexist with current generation models due to their sustained popularity.
The automaker is now in the process of redefining its future SUV strategy since it has to make up for the market share it lost in the past few years.
In FY12, it had 55 percent market share in the SUV segment, but by FY20, its dominance had vanished and the firm had only 19 percent share.
So, it plans to stick to what it does best – make rugged and proper SUVs and not tall-riding crossovers and still come up with products that will also appeal to urban youth.
Executive Director (Auto & Farm Sectors) at Mahindra, Rajesh Jejurikar has revealed that the firm will not blindly chase market share or into segments where it does not have competitive advantage.
Having created the Scorpio and XUV500 and subsequently their segments, it now wants to retain its innovator mojo. Thus, the next gen Mahindra XUV500 and the Scorpio will be “tough, edgy and unique”, Rajesh Jejurikar stated.
Moreover, due to its joint venture with Ford, the firm has corrected its capital allocation for the automotive business. Between FY22 and FY24, its Capex has been reduced by Rs. 3000/- crores.
This, the firm believes will help consolidate its position. Next gen Mahindra XUV500 and Scorpio are set to be launched next year, provided that plans have not been pushed further due to the COVID-19 crisis.
Next Gen Mahindra XUV500
- Next generation Mahindra XUV 500 will coexist with its predecessor
- The Scorpio too will be sold alongside the current gen model
- Automaker wants to claw back its lost market share
Source – ETAuto.com