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On the heels of the domestic launch of its most premium product yet – the XUV 500 – Mahindra & Mahindra (M&M) said on Thursday that it is “eyeing” an entry into the lucrative export markets such as China and Russia.
This is part of a plan where the country's largest utility vehicle maker aims to launch its new SUV across at least 10 major overseas markets over the next 6-8 months. In all, it is looking to tap around 30 export markets over time.
For global market
“Unlike our other products, this (XUV 500) had been planned for the global market. Things like safety and emission standards, apart from a left-hand drive model, were all taken into account during development.
“The validation has also been done for certain markets ... though there is no specific allotment for exports, around 20 per cent volume exports will make me happy,” said Dr Pawan Goenka, President, Automotive and Farm Equipment Sectors, M&M.
Assembly options
From this Saturday, the first export market would be South Africa, where it already has 25 dealers, followed by Brazil and other South/Central American countries, Australia, Eastern and Central Europe and ultimately Western Europe.
If monthly volumes touch 1,000 units, the company may start assembly in South Africa – where it already operates an assembly plant. The assembly option is also open in Brazil (through a partner) and Korea (at Ssangyong plant).
Global branding
While Mr Anand Mahindra, Vice-Chairman and Managing Director, Mahindra group, said that global branding is “an ongoing project” with the recently acquired Korean carmaker Ssangyong, it will still look to leverage the latter's network in export markets where it does not have local presence.
Made at its Chakan plant, the initial production run for the feature-laden SUV is 1,500 units a month, which will be increased to 2,500 units a month over the next three months.
Production can also be increased according to demand.
“I believe the XUV 500 can also become a mythic, iconic vehicle,” said Mr Mahindra, while comparing the new launch to current flagship Scorpio.
“What we want to deliver is no excuses value.”
Even as more vehicles expected to come from the XUV 500's new platform, including Ssangyong models, M&M is already working on an automatic transmission variant of the premium SUV.
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