Mahindra had responded very swiftly to the ban on 2000cc + diesel engines in NCR by launching the XUV5OO and the Scorpio with the sub 2.0 litre engines.
"The Mahindra XUV500 and Scorpio contribute to nearly 40% of the company’s monthly domestic sales at around 20,000 units, of which around 4% comes from the National Capital Region" (Source: Rushlane.com)
The 2.0 litre engine (branded as W1.99 in the XUV) is a 1997 cc engine compared to the 2179 cc engine. An exact difference of
182 cc. I'll leave the discussion on how that made a difference to pollution levels to the thread dedicated to this subject!
The engine must have been in development for quite a few years and I'm quite sure is not a reaction to this ban. The development, strategy of use, testing, etc would have been in progress for at least more than a year. The strategy of use (as per GTOs post elsewhere on the forum) was that the engine was being developed to launch it in International markets where additional taxes apply to 2000+ cc engines.
This ban surely came to Mahindra's advantage and provided them a windfall gain. Toyota claims its losses were Rs. 1700+ crores, not to mention the job losses and unpredictability it creates in the investment market.
The masterstroke: - The engine specs of both the Scorpio and the XUV remain unchanged and consequently no noticeable difference in how the SUVs perform.
- The new automatic Aisin gearbox was mated to the W 1.99 XUV5OO shortly after the launch.
- The NCR buyers will not feel shortchanged due to the same features and specs being offered
- 1% cess avoidance for NCR making the products even more price competitive.
- The engine is supposedly being developed for international markets so might be here to stay
The complaints/worries:- XUV not launched with the AWD option
- XUV W10 manual misses out on the Brake Energy Regeneration system.
- Scorpio not launched in the AT version (can someone confirm this?) - not sure if the 2.2 AT is being offered after the ban has been lifted
- If the 2.0 litre engine is discontinued (against what the rumour suggests) then the resale value might get affected . Spare part availability and servicing will also be an issue outside NCR
Different people have different opinions on the last point since the differences in 2 engines are not clearly known. My guess is it could only be a difference in bore/stroke while all other components and design would largely remain the same. Would be keen to hear insights if anyone has them.
Scorpio 1.99: The new engine generates the same 280nm @ 1800-2800rpm : exactly the same as the 2.2 litre engine.
XUV W1.99: The new 1997 cc engine generates 320nm @ 1600-2800 rpm of torque against the 330 nm in the same rpm range that the 2179cc engine generates. An ignorable reduction of 10nm.
If dealers in Delhi are to be believed Mahindra has already confirmed that they will continue the W1.99 engine in NCR despite the ban being lifted.
There are advantages to this, including the fact that the XUV and Scorpio will have a 1% price advantage (once you include insurance and registration value) compared to the competitors which are mostly 2 litre+. The obvious disadvantage being Mahindra will have exactly same products with 2 engines - not sure if (or how) it affects economies of scale.
Disclosure:
In the interest of full disclosure (!) I must admit to buying the Automatic W.199 XUV
after the ban was lifted for a few reasons including the fact that Mahindra was offering very compelling discounts in NCR and that I desperately wanted an Automatic transmission. I also had to replace my Mahindra Scorpio 2.6 which was nearing 9 years. An XUV AT was a natural and worthy upgrade considering I've been very satisfied with the Scorpio. Will start a thread shortly to track ownership.
My vote is that the W1.99 is here to stay. Time will tell if going for the W1.99 was the right decision.
The new upgrade Automatic W 1.99 XUV W8 :
P.S : Time to change my signature to "Feeling down, buckle up" ?