We welcome all good competition, says Hyundai on Mahindra XUV 3XO's arrival
We welcome all good competition, says Hyundai on Mahindra XUV 3XO’s arrival
Hyundai Motor India, which sells the Venue, welcomed the introduction of the XUV 3XO by rival original equipment manufacturer (OEM) Mahindra & Mahindra, saying that it will do whatever is required to sustain its overall numbers.
The Mahindra XUV 3XO was launched on April 29 in the price range of Rs 7.49 lakh to Rs 15.49 lakh (ex-showroom). Developed at an overall cost of Rs 650 crore, the compact SUV rivals the likes of the Tata Nexon, Maruti Suzuki Brezza, Maruti Suzuki Fronx, Hyundai Venue and Kia Sonet.
For reference, the Nexon is priced between Rs 8.15 lakh and Rs 15.80 lakh (ex-showroom), the Brezza between Rs 8.34 lakh and Rs 14.14 lakh (ex-showroom), the Fronx between Rs 7.51 lakh and Rs 13.03 lakh (ex-showroom), the Venue between Rs 7.94 lakh and Rs 13.44 lakh (ex-showroom) and the Sonet between Rs 7.99 lakh and Rs 15.75 lakh (ex-showroom).
The compact SUV segment is among the most competitive in the industry with these five rival models garnering handsome volumes in FY24. While the Nexon led at 171,697 units, it was followed by the Brezza at 169,897 units, the Fronx at 134,735 units, the Venue at 124,307 units and the Sonet at 81,384 units. In comparison, the XUV300, which was the XUV 3XO’s predecessor, posted volumes of merely 53,982 units during the fiscal.
The Mahindra XUV 3XO shares production line with the Mahindra XUV400 electric SUV at the company’s Nashik plant, where models like the Mahindra Thar and the Mahindra Scorpio Classic are also produced. While the current capacity for the Mahindra XUV 3XO is at 9,000 units a month, it can be scaled to 10,500 units a month with additional investment.
Replying to a question from India Today on the impact of the Mahindra XUV 3XO launch on the Hyundai Venue volumes, Hyundai Motor India COO Tarun Garg said: “New models are being launched every month. Now it is so difficult to say what will be the impact of any model. So many OEMs are launching new products, which means more choice for the customer, more opportunity for the market.”
“We welcome all good competition. When a new model is launched, it is not only a choice for the customer, it is also investment into the advertising, creating new demand, customers go to different manufacturers,” he added.
According to Garg, OEMs have their strategies to deal with additional competition in any segment.
“Whenever a new model is coming into the segment, it impacts. But then you also have to do so many things. This is nothing new. You have to have your own strategy. This is not a surprise. Today everybody knows which manufacturer will launch which model in which month. All of us have our strategies in place,” he said.
The Hyundai Venue posted volumes of 9,122 units in April. However, this was slightly lower than the average monthly wholesales of 10,359 units clocked by the vehicle in FY24.
“The Hyundai Venue is a very strong model, consistently clocking very high numbers. We will do whatever is required to sustain our overall numbers as far as Hyundai is concerned,” Garg said.
The contribution of the SUV segment to the domestic volumes of Hyundai has jumped from 53% in 2022 to 60% in 2023 to 66% in 2024 so far.Â
“This shows that additional capacity is coming into the SUV segment. We are very flexible between the Exter, Venue, Creta and Alcazar. Based on the demand, we can always make adjustments,” he observed.
Watch Live TV in English
Watch Live TV in Hindi