Mahindra recently announced that a new SUV from the brand would come with the ‘XUV700’ moniker. The company also revealed that the XUV700 would replace the XUV500, temporarily discontinuing the SUV. The keyword here is ‘temporary’, which means the brand will be bringing back the XUV500 soon.
Bringing back the XUV500 is very important for the brand. This SUV fills the void between the XUV300 compact SUV and the much advanced and expensive XUV700. Now sources report that the XUV500 will be smaller than before when it returns to the portfolio. The new SUV will not only be smaller but also more affordable. This move will allow Mahindra to compete in the lucrative mid-size SUV segment, which the Hyundai Creta and Kia Seltos currently dominate.
The new Mahindra XUV500 made its debut in 2011 and measured around 4.6-metres in length. The SUV based on the W201 platform comes with seats to accommodate up to 7 passengers. The SUV also features an all-wheel-drivetrain and currently does not slot in the mid-size segment in terms of the price. The segment includes vehicles that are 4.2-4.3-metres in length, and Mahindra is likely to use a new S301 platform to achieve this.
The S301 was under development in the Ford-Mahindra joint venture. The Mahindra S301 was supposed to use Ford’s B772 platform, but the partnership came to an end at the beginning of 2021. This has left the company with no choice but to go back to the drawing board. For this reason, the Mahindra XUV500 is likely to arrive in the market in 2024.
Reports suggested that Mahindra would use the S301 platform for the XUV400. But speculations are that the XUV400 will be smaller but more premium than the XUV500. Because of the dissolution of the Ford-Mahindra JV, Mahindra could use the XUV300’s platform for the upcoming XUV500. This means Mahindra will have to reengineer the Ssangyong Tivoli platform. Still, sources suggest that the brand’s learnings from the development of the XUV700 (W601) will help the company optimise the weight and cost of reengineering the platform.
The Mahindra XUV500 is likely to come with a revised 1.5-litre diesel engine from the XUV300. Mahindra will upgrade this new engine to ensure the motor conforms to the future emission norms (BS6 Phase2). The brand is also likely to introduce the XUV500 with the 1.5-litre turbo-petrol engine that Mahindra unveiled at the 2020 Auto Expo.
The new XUV500 is likely to come with a price tag of INR 10 lakh and go all the up to INR 17 lakh ex-showroom. This price will allow direct competition with the Hyundai Creta in India.
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