In automotive industry news, over 50 thousand Mahindra XUV700 worth Rs. 9,500 crores were sold in just 3 hours. While the first 25 thousand units were sold out on Friday in under an hour, the next batch of 25 thousand units got sold under an hour. Reportedly, this is the new benchmark that Mahindra and Mahindra has created in the sales of SUVs in India. The company termed the incident as an, “unprecedented milestone in the Indian automotive industry”.
Details
For any company in the Indian automobile market, making a name proves to be a challenge due to the likes of Maruti Suzuki and Tata already sitting on the top. While International brands such as Ford and Volkswagen have tried to compete with the giants, a new homegrown brand has been making waves.
Mahindra and Mahindra, which was once known for its heavy-duty SUVs like Thar, Bolero and Scorpio have come in the market with a new compact crossover SUV – the XUV700. The XUV700 comes after the massive success of the XUV500 which was brought by Mahindra and Mahindra after 2015.
Recently, the sale of XUV700 broke all the record, and earned the company Rs. 9,500 crores in just 3 hours.
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The Facts of the Matter
3 hours – 50 Thousand SUVs – Rs. 9,500 crores sale. Mahindra & Mahindra is currently surfing on the success wave of the sale of the newest SUV offering. The company announced the sale of its XUV 700 compact SUV and within hours, the sale was done and dusted.
50,000 XUV700 Units Gone With the Wind!
The first batch of the XUV700 consisted of 25,000 units. This batch was on sale on Thursday. In an unprecedented manner, the first batch was sold out in under an hour (57 minutes to be precise). The second batch had the remaining 25,000 units and was sold out in under 2 hours.
“We Respect Responsibility It Puts on Us”: Anand Mahindra on XUV700 Sales
The news was shared by Mahindra & Mahindra chairman Anand Mahindra. Taking to Twitter, Mr. Mahindra wrote, “Bookings opened today for the 2nd round of 25K cars. These were also gobbled up in a flash. Cumulatively, 50K XUV700s spoken for, signifying a value of near 10,000cr. The customer enthusiasm is staggering & as I said yesterday, we respect the responsibility it puts on us.”
Bookings opened today for the 2nd round of 25K cars. These were also gobbled up in a flash. Cumulatively, 50K XUV700s spoken for,signifying a value of near 10,000cr. The customer enthusiasm is staggering & as I said yesterday,we respect the responsibility it puts on us 🙏🏽 https://t.co/4xAYp3QlME
— anand mahindra (@anandmahindra) October 8, 2021
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Overwhelming Response Leads to Website Congestion
Such was the anticipation and enthusiasm for the sale that even the server capacity had to be increased by the folks at M&M. Veejay Nakra, M&M Automotive Division was quoted saying, “While we anticipated the traffic and prepared our system with added server capacity, the overwhelming response could have regrettably led to a slow user experience by some of our customers.”
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What the Numbers Say
The recent sale certainly adds strength to the idea that India is slowly warming up to SUVs as they had to sedans and hatchbacks. For the data junkies, India had already sold 5,23,012 SUVs in the first 5 months of the FY21. The SUV sales now attribute to 36% of the total passenger vehicles sales in India. What’s more interesting is that the booking of over 25,000 units is about 20% of the monthly SUVs sale volume.
What Caused Such A Frenzy Around the XUV700?
The exceptional response could be caused due to multiple factors. The first factor is the credibility that M&M has garnered after the high-performance of their prior SUVs.
But more importantly, the response can also be attributed to the fact that XUV700 was released on an introductory pricing. The first day saw the SUV being sold at Rs. 11.99 lakhs. The second time, the company revised its price to Rs. 12.49 lakhs. From now on, the price of the SUV will be in accordance to the price on the day the SUV is delivered.
