India’s largest sport-utility vehicle maker Mahindra & Mahindra Ltd. is taking on the small-car market with a compact SUV it says offers the best of both worlds.
Launched on Friday, January 15,2016, the KUV100 is powered by the smallest engine in Mahindra’s portfolio. It is the first time the automaker has offered a gasoline-powered SUV.
Dealership prices start at 442,000 rupees for the 1.2-liter gasoline version, the top-end model costs around 591,000 rupees.
The 1.2-liter diesel engine model is pricier, starting at 522,000 rupees.
The KUV100 includes dual airbags, antilock brakes with electronic brake distribution, steering-mounted audio and phone controls, and remote keyless entry.
“I think we are creating a new class of car—a vehicle that combines the appeal of an SUV with the compactness of a hatchback,” Anand Mahindra, chairman and managing director, of Mahindra & Mahindra, said in a recorded speech that was telecast at the launch.
Mahindra executives said they would target first-time, young customers who want to buy inexpensive, fuel-efficient hatchbacks.
They are also aiming to capitalize on the booming demand for SUVs in India, particularly compact versions and crossovers.
The company says the diesel model of the KUV100 can run up to 16 miles a liter, while the gasoline model has a mileage of 11 miles a liter.
Small cars such as Maruti’s Swift, Hyundai’s Grand i10 and Honda Motor Co.’s Jazz comprised 85.5% of the nearly 1.52 million cars sold in India in the first nine months of this fiscal year that ends March 31, according to the Society of Indian Automobile Manufacturers.
Industry experts say however that attracting potential small-car buyers could present an unprecedented challenge for Mahindra because there are so many of them available on the Indian market.
“Mahindra is the challenger in this segment and it isn’t going to be easy as small-car buyers have a lot of trust in Maruti and Hyundai,” said Anil Sharma, an analyst at IHS Automotive in India.
Mahindra launches KUV100 in India, Prices starts at Rs 4.42 Lakh
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