[e46]

The thread seems to have picked up like a turbo!

However aggressive the price may look to be, one must consider the following:

1. Prices revealed are for a small proportion of the entire variant lineup (smart marketing tactic). May be of the bottom 15% sans 7 seater, as many have pointed out.

2. Top variant features do not mention about existence of ESP - for a big car starting at 12L and weighing north of ~1700 kgs!

I strongly recommend members to look at this launch, taking these things into mind.

Abhishek //M

[Turbanator]

Originally Posted by K.grg

Mahindra is not a finance / leasing company that aims to run their shop just by acquiring booking amounts. few hundred crores isn't going to sail this company.

Even at the lowest interest rates, Mahindra can pocket at least 5 % in Fixed Deposits, and these people surely know how to get even more.

They can source funds at much cheaper interest rates, that interest gained on these booking amounts will be loose change for them.

Two different things, they can't source lower than PLR but can easily invest at PLR or higher. Either way, they will earn from the deposits. Unlike Thar, I will be surprised if they launch price protection again as the commodity prices are on increase and it may hurt them on a low margin product like this.

This is just the way Mahindra wanted to disrupt the market and show many of their competitors that the 'big daddy of SUVs' can always shut the door on their faces.

Right, so they want to play the volume game and are equipped fully. They don't have to pay royalties to HQ in overseas and can-do savings like no other MNC, not necessarily by compromising Quality always, if I may add.

But if we think that Skoda or Toyota is going to follow them, it's not going to happen so fast at least. Hope, both Mahindra & Tata can improve their quality levels and we can get world class products at competitive prices.

[antriksh]

Originally Posted by K.grg

Bro,

In my honest opinion, Mahindra is not a finance / leasing company that aims to run their shop just by acquiring booking amounts. It never makes business sense and enterprises do not run like that. This is a company sitting on mountain of cash reserves and few hundred crores isn't going to sail this company through. They can source funds at much cheaper interest rates, that interest gained on these booking amounts will be loose change for them.

Also, the companies do not keep the booking amount with themselves, instead they act as collecting agent and transfer it to the dealer selected by you for vehicle delivery. So, may not be M&M but it will definitely help its dealers.

[K.grg]

Originally Posted by Turbanator

Even at the lowest interest rates, Mahindra can pocket at least 5 % in Fixed Deposits, and these people surely know how to get even more.

Sir,

Let's assume Mahindra gets 50000 bookings with a waiting period of 12 months, and rest of the bookings keep getting deliveries. At Rs. 50000 per booking multiplied by 50000 bookings, the total amount collected is 250 Crores. At 5% ROI, which you have mentioned, the interest gained per month is 1 Crore per month. This is peanuts for a company sitting on a pile of more than 30000 crores cash reserve. Though every penny saved will help any company. But to assume that saving interest on booking amount is a source of revenue for a business is really a far stretch

[fundagenie]

Originally Posted by e46

2. Top variant features do not mention about existence of ESP - for a big car starting at 12L and weighing north of ~1700 kgs!

Abhishek //M

XUV5OO top end versions already had ESP from the time it was launched 10 yrs back. So maybe the reason Mahindra dint specifically mention it, since its already part of the earlier package. A good hope is they give ESP as standard across all versions.

FundaG

[Turbanator]

Originally Posted by K.grg

But to assume that saving interest on booking amount is a source of revenue for a business is really a far stretch

Businesses are not run in that way. No one is saying that it's going to be anything substantial but nevertheless, Rs 250 Cr at no Interest doesn't hurt anybody.

I remember old days, maybe valid now as well, Maruti used to pay Interest on the bookings as those used to stretch for Years.

But getting interest will be something not on mind for any prospective customers. Everybody wanted the car yesterday

I was not aware that the booking amount is Rs 50,000, we paid Rs 21,000 on 30th October for Thar which is expected next month. The only solace is the hope that Mahindra dealer maintains last year prices as per commitment.

[car_crazy]

Prices are very competitive, however, from my previous experience, we should ideally wait for the reviews and pros/cons from the experts. I can understand that people are very excited about the launch but one should certainly wait and see how has it improved over its successor in terms of the ride quality of the car, behavior, etc. Just by looking at the features and price tag, one should not spend so much $$$'s.

Also being an XUV500 owner (2013 make), I will wait for Team-bhp official review before making any decision.

[fakenews]

Originally Posted by rpmmachine

Tailgate made of plastic? Really?
No crash tests from the rear are the reason behind this.
Tata Will laugh at this. I have seen recently the video where Maruti banged the standstill tata and there was minimal damage to tata. But Maruti was shattered into pieces.

I have read that someone invited TBHP (Behind the Scenes: How Press & Media Drives Work)for previewing vehicle, but asked not the comment about the build quality.
TBHP refused and that's why no review by TBHP for the next 1 month.

Are the middle row seats even thinner than Current XUV500 ??

Sorry, but this is a rather wrong interpretation for many reasons:

1) Only the cosmetic panels will be made of plastic. The tailgate's frame will still be made out of metal like the rest of the car's exoskeleton. Mahindra replacing some sheet metal with plastic is not a revolutionary feature; many car manufacturers have been doing so for a while

2)Every cars' bumpers are made out of plastic. This is because COSMETIC PANELS ARE NOT INTEGRAL TO THE SAFETY STRUCTURE! The bumper plays no role in a head-on collision, why would the tailgate sheet plastic play a role in a rear-end collision?

3) That viral Hexa-Dzire crash is simply a case of mismatched bumpers. Here is a video linked below as an explanation:

https://www.youtube.com/watch?v=yLW2OVtP6_w

There is no cause to be worried about the build quality yet. What with all of Mahindra's efforts in introducing first-in-segment active safety features, why would they compromise on build quality? It's not like modern Mahindras are unsafe...

[manpreetsj]

My assessment on pricing is as follows:

A) Aim of becoming market leader - M&M has pulled a Jio in PV segment and is targeting leadership. SUV segment is the only segment seeing north of 30% growth rate y-o-y in India. M&M was at once a leader in this segment after launch of XUV500 in 2011. They wish to repeat that dominance. Hence, launch new car with what Indians want (Big car + bling/gadgets) at highly disruptive price point. This leads to taking share of pie from Sub-compact, C-SUV and Mid-SUV segments (10-25 Lakhs range).

B) You may now ask how will they make money at such price point:

1) Platform used / low R&D cost - M&M is in market to sell loss making Ssangyong Motors. On books I would assume M&M must have already written off this investment. Positive of buying this Co. is that M&M got a good platform which it modified slightly to come up with New XUV500 (Launched as XUV700 :P). This must have helped them save on R&D costs. Hence, leading to lower cost allocation / recovery per car sold.

2) The lower variants pricing announced is just to capture limelight. Higher variants even if priced in line with Hector/Harrier/Safari, with all tech and space it offers, will be VFM.

[Moto_Bear]

https://www.rushlane.com/mahindra-xu...-12409980.html

This just in, prices of variants from 12 lakhs to 22 Lakhs. 30 variants on offer as per Rushlane. Although as per them the list is speculative.

Edit: The lack of Manual transmission in AX7 variant is something I dislike given my love for Manuals. Hope they provide manual in AX7.

[Rajeevraj]

Originally Posted by extreme_torque

Interesting. I wonder what role did they play and how those technologies differ from the existing one's via other OEM's aka Radar for adaptive cruise and camera for lane mapping.

ADAS technology and implementation is a very specialized segment. Very few OEM's do it on their own. Like with other aspects of a vehicle design where they work with their partners and tier 1 suppliers, for ADAS related tech also most OEM's work with a partner for a grounds up design specific to the vehicle under consideration. As per the Mobileye website, 25+ OEMs worldwide rely on Mobileye technology for ADAS implementations.

Here is a blog from the Mobileye Website with more details of the Mahindra engagement along with a video

https://www.youtube.com/watch?v=xL7i2MQHORY&t=80s

[enginesoul]

Its good idea for VW not to release their Taigun to save from embarrassment.

Skoda had priced their 1.5 TSI MT with 150HPs around 20.07 L(OTR Bangalore) where as XUV700 with 2.0 Turbo petrol with 200 HPs is priced around 17.5 L(OTR Bangalore).

Kushaq/Seltos/Creta n Taigun which actually work hard to look like SUVs, XUV700 comes out as SUV without even trying and dimensions speak for themselves.

Even if you consider 2.0L 155PS diesel engines in MX, the pricing of base model is far more aggressive than any mid 1.5 diesel trims in Seltos/Creta.

I suspect only those people who are loyal to their brand(as I am to VW) find it hard not to consider XUV700 when they are making purchase decision from now on.

Why crack it, when you can break it !? Unbelievable pricing ..kudos to Mahindra

[RachhaMan10]

I reached out to PPS Bangalore dealership for booking, they mentioned unofficial dealer bookings have started and its 21000/- and about 15 people have booked it already in that particular dealership.

[fakenews]

Originally Posted by Torquedo

This actually is a BIG dampner, don't know what level of cost cutting has been done by Mahindra to arrive at this price point. Remember having read somewhere that the fenders on the XUV5OO were also made of plastic.

I'm actually now intrigued and concerned by the fact why TBHP was not shared the vehicle, no comments were allowed on the build quality and there are no close up pics till date. It seems the dash and other parts might have been compromised on quality.

Heck, the diet specialist Maruti has never used plastic panels on the exteriors, why the hell Mahindra had to do it. I seriously cast my doubts on the build quality here, especially on the lower variants.

Originally Posted by rpmmachine

I was talking about this.
All Plastic Tailgate is hard to digest. Few questions in my mind.
1) How will it Perform in case of a rear collision. (Plastic vs Metal)
2) How will it hold in such hot sunlight and hot weather in North India.
3) How will it perform in the Long run? How well it will hold the tailgate from hinges. Suspect soon it will start making sound, Specially in Mahindra where we all know about its build quality.

How much more weight has been added by metal sheet? 5-10kg? Why did Mahindra choose this instead of the same as been provided in Current XUV500.
I was shocked to see this.
Kindly observe the picture closely and share your views.

Both of you, please watch this Carwow review of the Yaris and skip to 9:40

https://www.youtube.com/watch?v=FhdWqdFzvGM

Clearly, the Yaris uses cheap and thin sheet metal on the doors. Equivalent to plastic. That must mean it would fare terribly in a side-impact crash, right?

Wrong. In fact, the Yaris is the safest small car in the UK:

https://www.youtube.com/watch?v=qGlp0hxYVZs

This shows that sheet metal/plastic has little to do with the car's overall safety. Leave that to the car's chassis and overall structure. The Kia Seltos uses high-quality sheet metal, but fares poorly in the crash test because of the weaker steel used in the crumple zone/pillars. Also do note how the plastic bumper on the crashed Yaris did not crack

[giri1.8]

Originally Posted by rpmmachine

Tailgate made of plastic? Really?
Tata Will laugh at this.

Once the XUV7OO's NCAP rating comes out, it will be Mahindra who will have the last laugh. Tata doesn't seem to have any intention to send their flagship Harrier/Safari for crash testing.