Mahindra to Target Overseas Markets With New SUV
MUMBAI -- Mahindra & Mahindra Ltd. said Friday it will target western Europe, Latin America, Africa, Australia and Southeast Asia with a new sport-utility vehicle that will be introduced by the end of December.
India's biggest SUV maker by sales will initially sell the vehicle, XUV500, in the home market and South Africa before its worldwide introduction, Pawan Goenka, president for automotive and farm equipment business, told a news conference.
Mahindra will utilize the sales network of its unit, South Korea's Ssangyong Motor Corp., to sell the vehicle worldwide, he said, adding the SUV will be produced at a factory at Chakan in western India.
Selling the XUV500 in major overseas markets will be a key test for Mahindra as it will likely face strong competition from auto giants such as Ford Motor Co., General Motors Co. and Nissan Motor Co. At the same time, utilizing Ssangyong's distribution network will help Mahindra to save on costs as well as time needed for establishing an independent network overseas.
Mumbai-based Mahindra, which already sells its SUVs such as the Scorpio and Bolero in several overseas markets, previously announced plans to sell a compact diesel pickup based on the Scorpio platform in the U.S. but that attempt is yet to fructify.
"This is designed as a global SUV and has been designed to meet both the emission and safety requirements of several markets where we have a presence today, and others that we are eyeing," Mr. Goenka said. He said the company plans to sell the XUV500 in more markets after gauging the response in regions such as western Europe and Australia.
The SUV will be offered at a starting price of more than 1.2 million rupees ($26,258), extending to less than 2.0 million rupees, Mr. Goenka said, adding that additional details such as engine specifications will be announced at the time of launch.
In India, the XUV500 is likely to be pitched against SUVs from companies such as Toyota Motor Corp., Mitsubishi Motors Corp., General Motors and Ford. Mr. Goenka said the current market in India for SUVs costing less than 1.2 million rupees is about 300,000 units each year, and about 25,000 units for those costing more than 1.2 million rupees.
As part of the growing synergies between the two companies, Mahindra will soon starting selling Ssangyong SUVs in South Africa, said Mr. Goenka, also the chairman of Ssangyong.
Late last year, Mahindra bought a 70.03% stake in Ssangyong, South Korea's smallest auto maker by sales, for KRW522.5 billion.
Mahindra to Target Overseas Markets With New SUV - WSJ.com
