Mahindra and Mahindra is the largest sports utility vehicle (SUV) maker in India in terms of revenue, aided by its XUV 700 and Scorpio N. But one segment, where it has lagged is the compact SUV space long dominated by the likes of Tata Nexon, Maruti Suzuki Brezza and Hyundai Venue.
The homegrown company is aiming to change that with the XUV 3XO compact SUV that it unveiled at its Nashik plant in Maharashtra on Monday.
SUV demand in the country has soared in the last few years. In the 2023-24 financial year, a record over 42 lakh passenger vehicles were sold, according to the Society of Indian Auto Manufacturers (SIAM) and almost half of them were SUVs.
Mahindra has seen strong traction for its full-size SUVs like Scorpio and XUV700, it now hopes to gain similar momentum in the compact space with the XUV 3XO.
"The total size of the SUV market in India last year was about 25 lakh. About half of that, which is 12 lakh was in the sub-four meter segment. About half of that, which is six lakh is the relevant target segment, the monocoque compact SUV segment. In this segment, we are actually the number fifth player. In the next three years, we would target to be number one or two in this segment, which is the sub-compact monocoque segment," said Rajesh Jejurikar, ED and CEO, auto and farm sectors, M&M.
The 3XO replaces the XUV 300, which had been launched several years ago. The 3XO gets several design changes on the exterior and up-to-date technology on the inside like level 2 of ADAS (advanced driver assisted system), 26.03 cm infotainment screen, Harman Kardon premium audio among many other things.
Prices for the XUV 3XO start at Rs 7.49 lakh ex-showroom for the base model, going up to Rs 15.49 lakh for the top-end model.
Bookings for the XUV 3XO will open on May 15 and deliveries are scheduled from May 26.It will be available in both petrol and diesel engine options mated to a manual or automatic transmission.
The company has a capacity to produce 9,000 3XO units per month in Nashik, which could be increased to 10,500 units, with some additional investment, said Jejurikar.
While many car makers also make micro SUVs like the Hyundai Exter and Tata Punch, Jejurikar added that Mahindra has no plans to make small SUVs. So the XUV 3XO is likely to be the smallest SUV in its portfolio for now.
