The launch of this TUV500 (Heck with Mahindra's product naming) will put Mahindra in a serious problem. There will be three capable full size UVs under one roof to choose from - this, Scorpio and XUV500.
Below are the approx. current prices (in Lacs) -
TUV300 - 7.5 to 9.8
Scorpio - 10.3 to 14.7
XUV500 - 12.4 to 18.6
Ideally it should be priced in Xylo territory, i e. starting from 9 Lac to around 12 Lac for the top end. If that is the case, it would eat into Scorpio and TUV300 as well. Priced slightly above and it would touch mid variants of Scorpio and base variant of XUV500 as well. Price lower than this and it would eat into TUV300 as the mid variant of this and top end of current TUV300 will be priced very close.
This is like having too many products which are fundamentally the same, offer the same use and positives but come at prices which are a stone's throw from one another. It would end up in big product overlap, confusion among buyers and end of the day, one product will have to take the brunt. I guess Scorpio would be the target because this product will offer most good things of the Scorpio at a lower price. Typical WagonR - Ritz - Swift case. Who took the brunt? Ritz.
Hope Mahindra prices it very competitively (meaning end of TUV300
) or under-equips it to differentiate from Scorpio. I see big trouble for Mahindra but let's wait for exactly what they have in store for us!
By the way, why do the test mules have old-gen Scorpio tail lights?
Regards,
Alpha