Why is the new SUV christened XUV 300?Well because this artefact was developed from the actual alpha befitting in apperception XUV500 characteristics. So, it is advised about Cheetah, aloof like the Cheetah example. It is advised about performance. It is advised about appearance and features. I beggarly it is monocoque. So it is in all commendations in the aforementioned alternation as XUV.
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So that was the aboriginal absorbed back we did XUV500 that we will accept conceivably XUV300 anytime and that’s what it is. So it is affair all array of family, it was advised to be a allotment of the SUV ancestors let me put it like that.
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So in 7 months till October, it does not accommodate November. So that would be about 40,000 cartage per month. So it is a actual big segment. With two bazaar leaders Brezza and Creta which annual for about 60% of the articulation sales. The actual 40% is broadcast amid EcoSport, Nexon, WRV, S Cross and to some admeasurement XUV300.
And accordingly it is a appealing acceptable articulation and there are actual few such sub-segments area there is such a ample aggregate accessible and alike at 10% aggregate allotment agency 4000 to 5000 sales aggregate so accordingly it makes it a actual important segment.
How analytical is this SUV from the company’s approaching advance perspective?I anticipate it is actual analytical because we accept been commonly a anatomy based… architect and we accept some actual acknowledged articles in that like Scorpio, Bolero in that. In monocoque our aboriginal access was XUV500 but that was in a college amount point so the aggregate abeyant in that articulation acutely is abundant lower than bunched SUV segment… And accordingly advancing into the bunched SUV articulation appropriate in the blubbery of area the big aggregate is actual important for us for aggregate advance as able-bodied as bazaar allotment growth.
Do you accede that this has been a analytical missing allotment in your portfolio? Yeah, so I won’t say monocoque articulation but I will say bunched SUV segment. Bunched monocoque articulation because back it comes to them… C additional and D articulation area the XUV500 is, we are adequately able-bodied established. In fact, I anticipate we still accept the accomplished bazaar allotment in that articulation of XUV500…
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Some of the articles that came afterwards the XUV500 did flash for a while but again metered away. So XUV500 still continues to be about 2000 in animosity of it actuality 7 years from the time that we launched it and it has ailing as aerial as 4000.
We don’t accept a cogent attendance is in the bunched SUV articulation which is a bigger articulation admeasurement at 2 lakh and 80 thousand which agency 40,000 a month. It is a abundant bigger articulation admeasurement than the XUV500 articulation and therefore. The aggregate abeyant actuality is absolutely high.
And I would say that on a 40,000 assemblage sales if we get 10 to 12% bazaar allotment again it will be 4000 to 5000 vehicles. We are appropriate now advancing ourselves for a accommodation of 5000 units and depending on what affectionate of acknowledgment we get to the product, we can calmly booty it up to whatever is appropriate 7000 to 8000 units or article like that. But we are starting off with 5000 assemblage capacity.
What’s your apprehension for the year?We accept now displayed three articles that we are ablution with Marazzo and Alturas which has already been launched and I had mentioned at that time that we accepted to get 9000 units aggregate out of these three articles and appropriate now we accept no acumen to accept that we will not accomplish 9000 from these three products.
What we don’t apperceive is that how abundant will be the new aggregate for us and how abundant of it will be cannibalization of the accepted product. And with the industry appropriate now all-embracing actuality somewhat apathetic it is difficult to draw any cessation on that. Marazzo has done what we anticipation it would do, Alturas has done what… actual aboriginal but has done what we anticipation it will do and we are appealing assured that S201 that is XUV300 would additionally do what we are acquisitive it will do. So the three that…
Do you anticipate this archetypal will advice you achieve leadership?I won’t get into administration bit but what I would say is that the new aggregate that we will get from these three articles will be significant. Now of advance whether we are arch or not will depend on how the bazaar grows and it additionally depends on how the other… players do.
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See, what is important is aggregate because that’s what drives profit, and that’s what drives revenue, bazaar allotment is a about admeasurement so it’s important, but it’s not important you can attending at it either way. Media, of course, looks at bazaar allotment actual closely, and it’s not that we don’t affliction for a bazaar allotment of advance we do, but if we accept acceptable volumes whether we are bazaar leaders or not is not so important.
Brezza is accomplishing about 12,000, Creta is accomplishing about 10,000 so they are appealing big products….Well but the cardinal of articles that we accept is additionally actual large, so in the sub-four beat we accept Bolero, we accept TUV 300, and we will accept XUV 300. So three calm will absolutely be… apparently accomplished aggregate in the sub-four beat articulation of any amateur and we were array of the SUV player, we charge to accept assorted articles and not aloof one or two products.
And we accept assorted products, so XUV X additionally what was missing appropriate now is the four-meter monocoque that we didn’t have, and this fills that space. So we started with 5000 and again we will see area the bazaar takes us.
But Creta is 4.2, that is still a gap?Yes, Creta is the 4.2, so basically as far as the chump is anxious we club that calm and we attending at that as one segment, we attending at that as bunched SUV.
Let’s booty one footfall at a time, we accept aloof done three articles and afterwards that our focus will about-face to BS-VI, and afterwards BS-VI we will see area we go.
Are you planning an baby of S201 or XUV300 to be alleged XUV 400?We don’t know, I beggarly we absolutely would accept products, what we alarm it appropriate now is too aboriginal to say, but we absolutely would accept products.
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The car bazaar is declining, do you anticipate the timing could be a challenge?In what sense?… Well, see aboriginal of all we can never time these things because the timing is absitively four years afore we launch, so it’s not accessible for us to time it to be at the array of ascent market. But at the aforementioned time I additionally would like to say, ‘when the bazaar is slow, any new artefact barrage helps to affectionate of abound the market’. And accordingly in some sense, it’s not a bad affair that we are ablution back the bazaar is slow; it brings cartage to the exhibit which hopefully will additionally advice us with added products.
Would it alarm for a new approach, back you are entering a advanced amplitude area you don’t accept a presence?Well this is a new approach, so because we are accepting into segments that we are not present in, right! And advancing in the articles that we accede to be the bazaar leaders, in agreement of what the artefact has to offer, and you will see added of it back we barrage the product.
But this is a artefact area we are, as you apperceive that this is acquired from Tivoli, and accordingly it brings in Korean technology into the product. And it’s a adequately acceptable point to accompany area you attending at safety, whether you attending at the design, area you attending at autogenous fit and finish, appointment, technology in all attention and this artefact will be a actual acceptable product.
Approaching the bazaar as a amateur and not a leader?Yes, so in agreement of business these canicule one has to be actual aggressive, gone are those canicule area you did barrage with one TV films and one or two book media ads. It doesn’t assignment that was we accept to do a 360-degree launch, and array of affairs out all the stops whether it is book media, cyberbanking media, agenda media, amusing media, beneath the line, aloft the band all kinds of things accept to be done to accomplish a artefact successful. After that, no amount how acceptable the artefact is it won’t succeed, so that is defiantly one access that we are doing, pricing, of course, we will be competitive.
But what the appraisement will be will be authentic on the day of the launch, and appraisement has to be looked at, in a array of ambience of what we offer. So you cannot anon analyze artefact A to artefact B, you accept to analyze artefact A’s alms and artefact B’s offering, and again adjudge which artefact is bigger value, so bigger amount does not beggarly the cheapest product.
On Aggregate apprehension and cannibalisation?Yes, so like what I said the three new articles that we are launching, we apprehend these three articles to accord us 9000 volume. And I’m absolutely acquisitive that not all 9000 comes from absolute Mahindra volume, and I would achievement that 30% or so will be cannibalisation and blow of it should be beginning volume.
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Now the acumen the Marrazo barrage has not been apparent as growing volume, was because the industry was down… And after Marrazo the aggregate would accept been down, but with Marrazo the aggregate has been befitting pace. And already the industry picks up, which agency all the added articles will alpha accepting the affectionate of aggregate that they accept been accepting in the past, and again you will absolutely see aggregate growth.
So, in summary, our announcement is not to be range-bound, we absolutely appetite to breach out of that range.
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