Mahindra XUV500 is the new sales leader among all cars above Rs. 10 lakh

Mahindra XUV500 has just set itself another first. In the first month of sales, the XUV500 has sold the most number of vehicles among all cars priced above Rs. 10 lakh in India. What makes this feat even more commendable is that these sales came out of just five cities in which the XUV500 has been launched – Delhi, Mumbai, Pune, Bangalore and Chennai.

In October, sales of the Mahindra XUV500 stood at 1,213 units. Bookings for the vehicle were closed within 10 days of its launch after they crossed 8,000 units. Mahindra has the capacity to produce only 2,000 XUVs a month and is in the process of ramping up this production figure.

To put the XUV500’s sales performance in perspective, the second highest-selling vehicle priced above Rs. 10 lakhs in October was the Toyota Fortuner at 763 units. The top-selling sedan in that price bracket was the Chevrolet Cruze, which sold 732 units last month, just a few cars ahead of the Toyota Altis that sold a little over 700 units. Also read: Mahindra XUV500 road test

Who lost out to the XUV500?

Mahindra XUV500 is the new sales leader among all cars above Rs. 10 lakh

So who lost market share to the XUV500? One vehicle that does seem to have felt the heat from the XUV500 is the Toyota Innova. The Innova’s sales fell 28% to 3,411 vehicles in October. The propositions of the XUV500 and the Toyota Innova are similar – both are 7-seaters, spacious and comfortable. Where the XUV scores is on its features, performance and value for money compared to the Innova. It’s quite possible that some potential buyers of the Innova were swayed by the XUV’s attractive pricing and switched loyalties. Also see: Mahindra XUV500 vs Toyota Innova

But other carmakers seem to have held their average sales numbers for October, showing that there’s actually plenty of untapped potential in the above Rs. 10 lakh segment in India. It was expected that the XUV500 may cannibalize some sales of the Mahindra Scorpio, given its proximity in pricing to its sibling, but that isn’t that apparent. The Scorpio sold 4,173 vehicles in October, just about 300 vehicles lower than its September sales. Sales of over 4,000 vehicles a month are still healthy numbers for the Scorpio.

The Tata Aria, which is another vehicle that stands to lose ground to the XUV500, lost about 21% in October, dropping to 438 vehicles from 560 the previous month. Tata needs to do some drastic rethinking on the Aria’s pricing because of the tough competition the XUV500 is likely to give it.

XUV500 sales outlook

Bookings for the XUV500 remain closed at the moment, and are likely to open in a few weeks after Mahindra sorts out its production capacities and speeds up deliveries of the XUV to customers. It has already started advancing deliveries by nearly 3 weeks in some cases, as its production gets on track. The largest number of bookings for the XUV has been for the white-colored variant and hence Mahindra has been advising buyers to switch color preferences if they don’t want to wait too long for the vehicle.

It has also deferred deliveries of the all-wheel drive W8 variant of the XUV500 and is advising buyers to pick the front-wheel drive version if they want early delivery. Those who have booked all-wheel drive variants will need to wait till after January for delivery.

Given the pending demand for the XUV, we think sales figures for November and December should technically be close to Mahindra’s production capacity for the XUV500 – which is around 2,000 units. Once it opens bookings and makes the vehicle available for booking in other cities across India, expect another spurt in sales of the XUV.

Top 5 sales (vehicles above Rs. 10 lakh)

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(Source: Team-BHP, Industry data)