With XUV 3XO, M&M Brings The Price War To Maruti's Brezza, Tata Nexon

Mahindra & Mahindra Ltd. has dropped the XUV 3XO in a crowd of sub-compact sports utility vehicles to capture a segment that has so far remained out of its grasp.

“This is one segment where we are not leaders,” Rajesh Jejurikar, chief executive of M&M’s automotive division, told NDTV Auto’s Mugdha Mishra on the sidelines of a launch event in Nashik on Monday. “The XUV 3OO was the No.5 player in the segment last year. Now, we want to be at the top, or near the top, in three years.”

In the fiscal ended March 31, 2024, the sub-compact SUV segment—or sports utility vehicles under 4 metres in length—accounted for nearly 50% of India’s SUV market, according to industry body Society of Indian Automobile Manufacturers.

While M&M is the market leader here in terms of revenue, volumes are skewed in favour of Maruti Suzuki India Ltd., Tata Motors Ltd., and Hyundai Motor India Pvt., which retail multiple SUVs in the sub-four metre space. These include the best-selling Tata Punch and the Hyundai Exter—the so-called mini SUVs based on the Tiago and Grand i10 Nios.

But the XUV 3XO’s natural rivals will be the Maruti Suzuki Brezza and Tata Nexon—as well as Hyundai Venue and Kia Sonet—which retail in the Rs 10-15 lakh price bracket.

What was supposed to be a refresh has turned into an overhaul.

The XUV 3XO gets three engine options: a naturally aspirated petrol, a turbo petrol, and, surprisingly, a turbo diesel mill in a segment where two out of three cars are powered by the pricier fuel.

“Diesel continues to be 65-70% of M&M’s overall sales. There is no dearth of demand,” Jejurikar said.

The XUV 3XO is packed to the gills. The base model, priced at Rs 7.49 lakh (ex-showroom), gets six airbags, four disc brakes and seventeen-inch wheels as standard. That undercuts the Brezza and Nexon on features as well as pricing by about Rs 60,000.

The mid-spec variant, which gets a more comprehensive infotainment system as well as an electric sunroof and M&M’s proprietary advanced driver assistance system, is seen as the best-selling. At Rs 10.69 lakh, it’s almost a lakh cheaper than the rivals. 

Additionally, the XUV 3XO has scored a segment-first by pricing its petrol automatic variant at under Rs 10 lakh (ex-showroom, Delhi).

“Pricing is a key factor for category disruption,” Jejurikar said. “A sub-10 lakh automatic is a potential disruptor. It is targeted at those looking to graduate from a hatchback.”

The XUV 3XO is available in five different trims and eight colourways. Prices start at Rs 7.49 lakh for the base variant and go up to Rs 15.49 lakh for the top-end. Bookings are now open online and at dealerships from May 15. Deliveries will commence from May 26.