Mahindra plans smaller variant of the XUV500

June 10, 2013: Mahindra & Mahindra (M&M) is planning to launch the smaller version of its XUV500 by the end of the current financial year, says a report by the Press Trust of India.The aim is to push up sales, the report said quoting the company’s chief executive (Automotive Division)Pravin Shah.

The current version of the XUV500, launched in 2011, has clocked sales of about 3,000 units a month. Available in three variants, the XUV500 had its share of problems when a few months ago, the company recalled some cars made in 2011 and 2012 to replace parts such as the front power window units (including window motors) and the left wiper blade cover.

M&M has already indicated that will work to modify some SUVs in the light of the government’s decision to hike excise duties on SUVs from 27 percent to 30 percent. Except for the Quanto launched in September last year, all other M&M SUVs come under the government’s new parameters for SUVs which include a length of over four metres and ground clearance higher than 170mm.

Meanwhile, SIAM has forecast that sales of SUVs, which were the engine of growth for the auto sector last year, will grow by between 11-15 percent in this fiscal.

Last week, M&M rolled out the Verito Vibe, a compact hatchback based on the Verito platform. Pricing for the Vibe, which is powered by the 1.5-litre Renault K9K diesel engine, starts atRs5.63 lakh (ex-showroom Mumbai).