Flagship Model of Mahindra
The Mahindra XUV700, priced between Rs 13.99 lakh and Rs 25.14 lakh (ex-showroom), has solidified its status as the flagship SUV for Mahindra & Mahindra. In October, it recorded its highest-ever monthly sales, with 10,435 units sold—a notable milestone, as this is the first time the model has crossed the 10,000-unit mark in a month.
Significant Sales Milestone
Achieving over 10,000 sales per month is a remarkable feat for an SUV in this price segment, especially considering that more affordable vehicles typically dominate volume sales in the Indian automotive market. The XUV700’s success can be attributed to strategic pricing and marketing efforts by Mahindra.
Key Strategies for Increased Sales
Two pivotal steps helped boost the XUV700’s sales in October. First, the introduction of the mid-spec AX5 Select variant at a competitive starting price of Rs 16.89 lakh in May expanded its appeal. Second, a price reduction of over Rs 2 lakh for the higher-end AX7 and AX7 L variants in July made these options more attractive to consumers.
Gradual Increase in Monthly Sales
Since its launch, the XUV700 has shown a consistent upward trend in monthly sales figures:
- May: 5,008 units
- June: 5,928 units
- July: 7,769 units
- August: 9,007 units
- September: 9,646 units
- October: 10,435 units
This steady increase indicates a growing demand for the model, particularly in the competitive SUV market.
Executive Insights on Sales Strategy
During a post-Q2 earnings call on November 7, Mahindra’s Executive Director and CEO for Auto and Farm Sector, Rajesh Jejurikar, elaborated on the company’s approach. He highlighted that the decision to adjust pricing was influenced by reductions in commodity costs and changes in the pricing of components, particularly chips.
Jejurikar emphasized the importance of making the brand more accessible, stating, “The AX5 Select allowed us to tap into a new price point, while the adjustments to the AX7 and AX7 L variants aimed to boost their sales mix.”
Impact of Pricing Adjustments
The changes resulted in a shift in the sales mix for the AX7 and AX7 L variants, which previously constituted about 75% of sales but dropped to 50%. Following the price adjustments, this mix increased back to around 70-75%. Jejurikar noted that overall sales volume surged from an average of about 6,000 to 8,500 units, particularly during the festival season.
Conclusion: A Bright Future for XUV700
The XUV700’s strategic pricing and effective marketing have not only increased its sales volume but have also restored demand for its top variants. As the waiting list for these models indicates, the SUV continues to capture consumer interest in a highly competitive market.
