November 6, 2013: In a market where SUVs are doing better than passenger cars, Mahindra & Mahindra has introduced a new, base variant of the XUV500, the W4, at Rs 10.83 lakh (ex-showroom, Mumbai). The launch is aimed at pushing sales of the SUV that have averaged about 2,400 units a month since its launch in 2011.

The entry-level model is powered by the 2.2-litre mHawk diesel engine that puts out 140bhp and comes mated to a six-speed manual gearbox. Standard kit on the W4 variant includes projector headlamps with LEDs, dual airbags, ABS with EBD, disc brakes all round, tilt-adjustable power steering, electric wing mirrors, and remote central locking, a six-way adjustable driver’s seat and foldable second and third row seats.

Dr Pawan Goenka, executive director and president, automotive and farm equipment sectors, Mahindra & Mahindra, said, "The XUV500 has resonated very well with our customers since its launch and has since become a trendsetter within the Indian automotive industry. With over 74,000 vehicles on the road within two years of launch, the XUV500 is one of our most successful launches.”

The XUV500 takes on the Renault Duster that has seen sales in the region of 4,500 units a month. This year’s Union Budget had upped excise taxes by three percent on SUVs that met a certain criteria including a ground clearance of 170mm. M&M models have been impacted by this. Also, with diesel prices inching up every month, the differential between petrol and diesel has fallen which has impacted maintenance calculations by buyers.