Mahindra will hike the price of XUV500 by up to 3 per cent January 2012 onwards. This comes as no surprise because Mahindra had mentioned that the prices were introductory and that they would be later hiked during its launch.
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The price hike may upset potential buyers. However we feel the XUV500 still offers more comfort features than its competition such as the Tata Aria and Skoda Yeti at a relatively lower price.
During the launch of the XUV500, Mahindra surprised everyone by pricing it aggressively in the Rs. 11 lakh – 13 lakh range. Despite the attractive price the XUV is offered with a big list of convenience and comfort features such as an integrated CD system with USB and Bluetooth connectivity, steering mounted audio controls and cruise control.
The top-end variant of the XUV, the W8 AWD which is priced close to Rs. 13 lakh has features such as rain-sensing wipers, light-sensing automatic headlamps, follow-me home headlamps, LED parking lamps and static bending lights. Some of these features are not offered even on premium SUVs such as the Toyota Fortuner and the Ford Endeavour which are priced in the range of Rs. 17 lakh – 20 lakh.
XUV500 bookings reopen in January
Mahindra stopped taking fresh bookings for the XUV in October but will reopen bookings in January 2012. The company already has a huge backlog of 8,000 vehicles due to the unprecedented demand in for the XUV500. Mahindra is making efforts to scale up production thereby reducing the waiting period for prospective XUV500 buyers.
Mahindra delivered 3,355 units of the XUV in the September 2011 – November 2011 period. If Mahindra continues at this rate, they will likely finish off their back log of 8,000 vehicles by March 2012. The production of the XUV500 has already been raised to catch up with demand and hence we expect the waiting period to come down significantly.