 "Mahindra's KUV100 a litmus test for rivals")
Market leaders Maruti Suzuki and Hyundai Motor India are closely watching the demand for the mini-SUV, to decide whether they should enter the low-cost SUV segment. The KUV100, which has actor Varun Dhawan as brand ambassador, is in its early days of the launch. It started bookings in December 2015, while deliveries began last month.
“We do not have any immediate plans to get into that (super compact SUV) space. We have just unveiled our own SUV. We are watching the developments as of now,” said C V Raman, head of vehicle development at Maruti Suzuki.
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KUV100, priced at Rs 4.5-lakh, is to M&M is what Nano was to Tata Motors with both being targeted at mass market buyers in their respective segments. Although the mini-SUV’s dimensions are small, M&M has added all the bells and whistles it can offer for that price. Mood lighting on door handles, different modes of driving, daytime running lamps, infotainment system, under-floor storage, and puddle lamps are some of the features offered on KUV100. Such features are not seen on hatchbacks available in that price range.
“The market will look at how consumers respond to that vehicle and only then take a decision. Today, consumer aspirations are changing very fast and buyers are looking for more and more expensive vehicles,” said a senior executive with Hyundai.
An example of consumers’ growing appetite for premium cars is the demand pattern for two of Hyundai's cars. Its premium hatchback i20 sells nearly twice compared to its cheapest offering Eon, though the former’s price is almost double compared with the entry-level hatchback.
In the absence of any close competition, the KUV100 is targeting buyers of hatchbacks who do not have a cheaper SUV option. The Ford EcoSport, for example, is priced at Rs 7 lakh.
Although it’s a six-seater, the KUV100 is smaller than premium hatchback Swift of Maruti Suzuki. While the length of Swift is 3,850 mm, the KUV100 is only 3,675 mm long. Other hatchbacks in the same segment include Hyundai Grand i10, Ford Figo, Chevrolet Beat and Honda Brio.
Earlier, fearing erosion of market share, many manufacturers had either announced plans or were secretly developing products to compete against the Tata Nano, whose base variant was set to be priced at Rs 1 lakh. However, those plans were later quashed as Nano failed to churn out the expected numbers.
M&M’s earlier product TUV300, launched a few months ago, has been well received in the market forcing the company to raise production. M&M has plonked two new engines, in diesel and petrol, in the KUV100. This is the first time M&M has used a petrol engine in an SUV for the Indian market. Both Hyundai and Maruti announced their entry into the compact SUV space recently with the Korean manufacturer already witnessing sustained demand for its Creta SUV.
Maruti Suzuki announced a major change in strategy last week with the debut in the SUV space. The company showcased the sub-4-metre Vitara Brezza compact SUV, which will compete against the Ford EcoSport, Mahindra TUV300, Hyundai Creta and the Renault Duster.