The company has planned a monthly production of 9500 units of Thar 3 door and Thar Roxx. This will help the company attain growth of mid-teens in FY-25.
15 Aug 2024 | 7054 Views | By Prerna Lidhoo and Ketan Thakkar
To make Thar the number one SUV brand, Mahindra & Mahindra is preparing to sell over 1 lakh units annually in the coming year.
The maker of Scorpio N and XUV 700 aims to make the Thar brand a mainstream alternative with the launch of aggressively priced Thar Roxx, ...
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To make Thar the number one SUV brand, Mahindra & Mahindra is preparing to sell over 1 lakh units annually in the coming year.
The maker of Scorpio N and XUV 700 aims to make the Thar brand a mainstream alternative with the launch of aggressively priced Thar Roxx, which will bring in incremental volumes for the company.
Priced at Rs 13 lakh to Rs 20 lakh ex-showroom, Mahindra plans a monthly output of 6,500 units for its lifestyle SUV, which also has off-road capabilities. Along with the Thar 3 door, it is planning to produce 9,500 units per month, according to the company.
Rajesh Jejurikar, ED and CEO, the auto and farm equipment sectors at Mahindra & Mahindra, told the media that the Thar brand aims to be a mainstream model. Building scale through volume is an essential aspect of creating a moat.
“Everything we do focuses on ensuring that we have volume momentum. With that comes a better cost, supplier involvement, and motivated dealers and teams. So, the overall ecosystem gets charged up when you get volume momentum. So, for us, the momentum and the moat get created out of volume,” explained Jejurikar.
Designed at the company’s design studio in Mumbai, Mahindra has invested about Rs 1000 crore in the Thar Roxx. Developed on an all-new Gylde platform, the company offers maximum space with a compact footprint. With the Thar Roxx, boasting many first-in-the-segment features, M&M is attempting to offer the best of both on-road and off-road capabilities.
The Thar Roxx is loaded with features and offers high tech across all variants. While the base variant MX1 comes with Electronic Stability Control (ESC), a 26.03 cm touchscreen, electronic power steering, etc., its subsequent top trims include features like 9-speaker Harman audio, the largest panoramic sunroof, wireless AACP, fully automated temperature control, a tyre pressure monitoring system, level 2 ADAS, and more.
On Thar Roxx's aggressive pricing and value proposition, Veejay Ram Nakra, president of the automotive division at Mahindra & Mahindra, says, “We are democratizing technology and making it accessible and mainstream at affordable prices.”
The company will build a portfolio of models on this platform in the future to appeal to a wider audience.
"You will see more products coming out of the Thar portfolio. When we talk about our ambition to be number 1 in the coming 3-5 years, you will see different versions coming out," said Jejurikar.
M&M is already a revenue leader with a market share of 21%. It is the number two SUV maker in the country behind Maruti Suzuki, which has a share of 19%.
Interestingly, in the Rs 12.5 lakh and above mid-size SUV segment, which accounts for 45% of the overall market, Mahindra & Mahindra is already a leader with a share of 27% with Scorpio and XUV 700.
Thar Roxx will offer another form factor from the company to bring in incremental sales.
The Thar Roxx will have a distinct buyer from the Scorpio N SUV; however, M&M agrees that the 3-door Thar will be somewhat cannibalized.
“We are prepared for some cannibalisation, which is one reason why we have not introduced a 1.5-liter, Thar Roxx. It creates space for a 3-door Thar. We have designed our capacity with some fungibility between the two products,” said Jejurikar.
The 3-door Thar currently sells about 4000 to 4500 units per month. M&M has already reduced the future production plan to 3000 units per month, factoring in some form of cannibalisation, whereas the new 5-door Thar Roxx is scheduled for a monthly production of 6500 units.
While the company has not announced the prices of the 4X4 version, they will be announced before the booking starts, said the top management
About 50% of the Thar 3-door sales come from the 4X4 version; M&M expects the share to be much lower with the Thar Roxx. The company will likely offer only diesel 4X4 for now; eventually, it may consider a petrol 4X4 to expand the range.
“A product comes and creates a new category like the 3-door Thar did. From nowhere, the category is now above about 4000 to 5000 units a month. Similarly, the Thar Roxx will bring incremental sales to the category. Thar Roxx will appeal to multiple sub-segments and create its growth path. A sub-segment is created if you have one or two successful products in that category,” believes Jejurikar.
The Roxx model test rides will start on 14 September, bookings will begin on 3 October, and dispatches for the “Dusshera” festival will begin on 12 October.