With Roxx priced from Rs12.99 lakh Rs20.49 lakh (ex-showroom) and pitted against the Hyundai Creta, Suzuki Grand Vitara, Kia Seltos, Mahindra is eyeing a leadership position in the midsize-SUV segment (priced over Rs12.5 lakh) over the next three to five years.
While the Scorpio-N and Scorpio Classic, which are averaging 12000 to 14000 units a month, will continue to be significant for the company, “the Thar has the potential to be a mega brand,” Jejurikar told ET.
To be sure, the brand is important for M&M for more reasons. After a series of misses in the competitive SUV market, M&M introduced the Thar in 2020 in a completely new avatar. In a market where every other vehicle had an SUV tag, the re-introduction of the brand marked a change of tack in the company’s strategy—of sticking to its core competence of making rugged, true-blue, all-terrain SUVs. It helped the company redefine its brand DNA as it sought to make a strong comeback. The strategy paid off. It’s now the market leader in terms of revenue and second largest in volume terms.
Mahindra has invested Rs1000 crore in the development, tooling, and capacity creation of the Roxx. Between the three-door Thar and the Roxx (five-door), its Nashik plant has a fungible (mutually interchangeable) capacity of 9500 units per month. With its latest offering, the company is eyeing a pole position in the midsize SUV market over the next three to five years.
Hyundai Creta, which sells an average 14000-15000 units a month, leads the segment. At the end of 2023-24, a total of 678,000 units of mid-size SUVs were sold. Mahindra that sells the Scorpio in the largest subsegment of the SUV market has a 27% share. While the company expects the Roxx to nibble into the three-door Thar to some extent, the sales of Scorpio, which has a differentiated positioning with regards to its commanding “road presence” and “buyer profile,” is unlikely to be cannibalised.