Mahindra & Mahindra believes the Scorpio will have its own place in the sun even while its position as the flagship vehicle has been taken over by the recently launched XUV500.

“From our point of view, the Scorpio has reached a certain status where it has its share of diehard fans. It was used to build the M&M brand from 2002 and the XUV500 will take the story further,” Dr Pawan Goenka, President (Automotive & Farm Equipment Sectors), told Business Line .

Over the last two years, the company kicked off an initiative to reposition the Scorpio as the ‘adventure' vehicle keeping in mind that the XUV500 would now take over the premium slot. “The styling changes and communication were part of this exercise. The brand separation exercise started two years ago even before anyone knew of the XUV500,” he said.

Price tag

The Xylo and Bolero's price points will continue to be below the Scorpio. The first quarter of 2012-13 will also see the entry of a SsangYong product (a tossup between the Rexton and Korando) expected to be priced over Rs 15 lakh.

As in the case of the Scorpio, M&M will ensure that the product positioning is spot-on vis-à-vis the XUV500. “We are very clear on how these two products will not overlap and eat into each other,” Dr Goenka said.

While the response to the XUV500 has been overwhelming, the company is taking one step at a time. The Rs 11-13 lakh space is a new price play, and customers are going to be more demanding too. Realising this, M&M has focused on grooming/training its sales team for the task ahead.

“The bigger challenge is to ramp up production because it is not nice to keep people waiting. At the same time, we cannot take our eyes off quality and processes,” Dr Goenka said.

Amidst this activity (which includes drawing up plans for overseas markets like South Africa, Chile and Australia), M&M has already begun thinking of the refresh to the XUV500. “We are collecting inputs from customers on what could have been better in the vehicle,” he added.

Future plans

Yet, the fact remains that it will take sometime before M&M readies its next big offering as it would first like to gauge how the market price segment is moving. “For us to justify any new vehicle, the global volumes will have to be 3,000 to 4,000 units per month of which India will have to contribute at least 65 per cent,” Dr Goenka said.

What has been equally rewarding in the XUV500 journey is the positive sentiment being generated all around. “From my point of view, it is just not about the auto business or M&M but a feeling of pride that it is about India. In the bigger scheme of things, a small contribution to building the India brand is very satisfying,” he added.

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