Mahindra and Mahindra has recently announced on 8th of June, when they launched their popular Mahindra XUV500 for bookings across all India Mahindra dealership that they will further increase their production capacity to 5000 from existing 4000 units per month. When launched initially in select cities of India in Sep 2011, XUV500 had an initial production capacity of 2000 units per month as per the pre-launch sales estimates. Mahindra seems to have taken the right step to increase the capacity to 5000 units a month by August 2012 as the bookings seem to be higher than ever before. In just two days of all Indian launch of Mahindra XUV500 in India, it has attracted over 7200 bookings which is phenomenal response for a vehicle priced ahead of Rs. 10 Lakhs.
With the value for money factor if Mahindra XUV500 being much higher in the segment and even a segment higher, it is attracting many buyers from the large MPV segment, SUV segment and premium sedan segment who are opting for an XUV500 for its lower running cost diesel engine which delivers close to 15 KMPL per litre of diesel which makes the running cost of XUV500 close to Rs. 3 per Km which is much cheaper than a sub-5 Lakh rupee petrol car which runs 15 KM per litre on petrol and costs close to Rs. 5 per Km in running cost!
Another reason for the overwhelming response is the list of features which the XUV500 offers like an all wheel drive system, powerful yet fuel efficient 2.2 litre diesel engine, superior space and comfort compared to premium sedans in the price segment, masculine looks, safety features, interiors and exteriors aesthetics, ride and handling quality etc. which make it a highly desirable SUV. There is no wonder that XUV500 has bagged many awards since its launch and is soon to be launched in many other countries like Australia, Chile and Italy.
Mahindra and Mahindra is also working on developing a petrol engine and an automatic transmission model of the XUV500 to meet the needs of many western markets where petrol is preferred fuel unlike India. We will keep an eye on the developments of the XUV500 and keep you posted on the same, stay tuned.