M&M launches XUV 3XO at aggressive prices, aims to be among top 2 in compact SUVs by 2027

Nashik: Auto major Mahindra & Mahindra (M&M) on Monday launched the facelift version of its XUV 300-- XUV 3XO, with price starting at INR 7.49 lakh and going up to INR 15.49 lakh (all prices, ex-showroom).

According to Rajesh Jejurikar, Executive Director and CEO- Auto and Farm Equipment Sector, M&M, the entire project cost for XUV 3XO stood at INR 650 crore, including capex. With the new launch, Mahindra aims to be among the top two players in the compact SUV segment in the next three years.

“We were waiting to get everything right to the 3XO, which we believe we have done. We are number five in that sub-segment that is the size of 6 lakh and we hope to get to number two or number one position in that,” Jejurikar said.

The segment offers models like Maruti Suzuki Brezza, Hyundai Venue, Tata Nexon, Kia Sonet. In this category, about 60% models sell with gasoline powertrain and 35% diesel.

In terms of domestic volumes, the compact SUV segment was led by the Tata Nexon selling 1.71 lakh units during FY24, followed by Maruti Suzuki Brezza at 1.69 lakh units. However, Mahindra XUV 300 could garner a little over 50,000 units.

In the new XUV 3XO, Mahindra is offering Level 2 ADAS (1R1V) with features ensuring enhanced driving assistance and safety measures. Talking about the aggressive pricing of the new model, the auto major noted that it has been able to provide the latest connected features at cost-effective prices compared to all the SUV makers in the country, as it is “the largest buyer of automotive technology in India" and its product portfolio is "more tech savvy than anyone else”.

“We were the first ones to bring ADAS and we buy a large volume of technologies that power connected technologies like our ‘AdrenoX’. A large quantity of silver box- as we call it- enables our trade-offs. We have substantial volumes from the high-end variants of the XUV 700 and Scorpio which are our highest selling models,” said the company official.

Built at Mahindra's Nashik facility, 3XO will be produced on the same production line as the XUV400 EV. This plant also produces the Thar and the Scorpio Classic. For XUV 3XO, Mahindra is targeting to produce 9,000 units of the model per month, which can be ramped up to 10,500 units a month with a small investment.

Bookings for the new model will open online and at company dealerships from May 15, with deliveries beginning from May 26.

Currently, XUV 3XO becomes the company’s smallest offering. As of now, it does not plan to bring a smaller model than 3XO because the company “does not do anything which does not match its DNA”.

As per a latest report by research firm Jato Dynamics, Mahindra is the largest SUV maker in terms of revenue, leaving behind Maruti Suzuki, Hyundai, Tata Motors.