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Mahindra predicts there will be an insatiable appetite for an increasing number of ‘value’ players in the Australian market.

Mahindra is making a statement in Australia, with the release of its Scopio and XUV700 marking a new push for the brand into the Australian market.

Both vehicles not only debut new technology and platforms for a brand which was once known only for its agricultural Pik Up ute, but they also have very keen pricing, a long list of equipment and seemingly very solid ownership terms.

The thing is, Mahindra is only the latest of an increasingly long list of low-cost brands in the Australian market, which has also been heavily infiltrated by the likes of MG, LDV and GWM Haval out of China, following in the footsteps of brands like SsangYong out of Korea.

So is there room for another cut-price, value-oriented player in the SUV space? Speaking to CarsGuide at the local launch of the XUV700, Mahindra’s Global President & CEO of Automotive, Veejay Nakra, wasn’t concerned in the slightest.

“There will always be categories of customers which will be looking for value,” he said. “It doesn’t matter whether it’s India or China, so long as we meet the value expectations of those buyers, we will find an audience.”

Nakra said Mahindra’s strategy was to focus on the well-trodden ground of the mid-size SUV, with its XUV700 priced from $36,990 drive-away now becoming the most affordable new seven-seater in Australia and priced below cars like the Mitsubishi Outlander and Nissan X-Trail.

“We see the opportunity in the mid-size petrol SUV [category],” he said. “It’s 40 per cent of the Australian market, and we’re looking at that as an entire opportunity.”

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The Mahindra XUV700 is the most affordable new seven-seater in Australia.

Nakra alluded to the fact that the brand was targeting more than just the LDVs, MGs, and Havals of the world, also setting its sights on customers who might also consider a more mainstream automaker.

Mahindra said it has quadrupled its footprint in Australia since 2020, although it is coming from a very low base, and this is based on internal numbers as the brand does not currently report to VFACTS.

Mahindra is just at the beginning of what it calls an “scale-up phase” locally, with a plan to have new dealers in every metro and state as part of a new global strategy from its Indian HQ to more than double its export footprint in the next few years.

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The Mahindra Scorpio was designed with the global market in mind.

“Unfortunately, up until now, we’ve been restricted to certain states,” said Mahindra’s local Sales Manager, Ankit Taneja. “Once we have a presence in every metro and state – at that time we’ll got to VFACTS and be able to publicly share those numbers with you.”

During this year alone, Mahindra aims to expand its number of ‘touchpoints’ from 50 to 60, opening new dealers in Adelaide, Melbourne, Sydney and Canberra.

The XUV700, Scorpio, and incoming new dual-cab ute were all designed with the global market in mind, rather than the brand’s previous approach to design vehicles primarily for its Indian home market. An upcoming fully electric sub-brand, dubbed ‘BE’ will also debut a family of fully electric vehicles sharing technology with Volkswagen, primarily aimed at a global audience.

Keyword: Are there now too many affordable SUV options? Mahindra not concerned about entering increasingly saturated 'value' segment competing with MG, GWM Haval, LDV and SsangYong

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