Mahindra new NU_IQ platformOver the last four years, Mahindra & Mahindra has made August 15 a commemorative occasion to make big ticket announcements on new products and strategic initiatives.
These events have taken place in the UK and South Africa while India has played host in recent times. This time around in Mumbai, the company made known its intent to develop an all-new platform which would spawn four SUVs with different powertrain options including electric, petrol and diesel.
More importantly, M&M said this was part of a larger global roadmap where countries like South Africa, Australia and the UK would be targeted for its new SUV range. Vision 2027 to that extent is a big step forward for the company where a slew of new SUVs will lead the way.
This year’s Freedom initiative also saw M&M unveil its Batman edition of the BE 6 electric SUV priced at nearly ₹28 lakh . The numbers will be limited to 300 units and clearly the idea is to present the masked hero from DC Comics to India’s affluent younger generation which is perhaps more familiar with the movie series that continues to hit global screens.
What we are hearing right now is a very large proportion of people who never considered MahindraRajesh Jejurikar
BE 6 as the Indian Batmobile
For those familiar with Batman, his comic debut goes back to 1939, three years after The Phantom (who was way more popular as a comic hero in India but did not make much of an impact in the US unlike Batman or Superman). There have been a whole lot of Batman movies which have made their way to India and his Batmobile now has an Indian sibling in the form of the BE 6. Clearly, the signal from M&M is that it is pushing the envelope harder in styling and design combined with modern, funky features that will appeal to India’s growing pool of young automobile enthusiasts. Electric is a vital component of the world’s tilt towards cleaner fuel alternatives and carmakers, especially those from China, have realised that they can really go the extra mile with radical concepts in design and the latest in electronics.
The underlying message is this: electric does not have to be boring by way of merely offering a sole objective of protecting the environment. Today’s SUV and motorcycle buyers value their independence and privacy, more so after COVID when they prefer to be in silos.
It explains why premium bikes are sought after with exclusive riding clubs where people come together. Likewise, for the more affluent with higher disposable incomes, their cars and SUVs need to offer the feeling of a home away from home.
Also Read: Mahindra unveils Global Vision 2027, showcases four ‘NU’ SUV concepts
Right price points
This is pretty much on the lines of smartphones which have now become essential companions for everyone. The key, however, for companies like M&M is to ensure that all this is offered at an affordable, or more specifically a value-for-money, price point.
This is particularly true for EVs where the mass segment of buyers will typically be comfortable with offering priced at ₹15-18 lakh. As much as Indian customers like the latest features in their EVs, there is only so much that they will be ready to cough up. To that extent, the MG Windsor has hit the sweet spot which is borne out by its market share of over 30 per cent in the EV space and its rapid growth since its debut in September last year.
M&M’s BE 6 and XEV 9e have doubtless made a mark with combined sales at over 3,000 units each month and in the third place after Tata Motors and MG Motor India. However, offering more price options under ₹20 lakh can draw more buyers and this is where the new platform, NU_IQ, unveiled on August 15, will play a role.
The fact that petrol and diesel will also be offered in the four concept SUVs that were unveiled also indicates that it makes more sense to be pragmatic and not focus on electric alone. Across the world, countries are going a lot slower on their EV plans since they have realised that it makes little sense to put all their eggs in one basket.
Also Read: Mahindra eyes 350-acre land acquisition in Igatpuri for expansion
China challenge
There are enormous challenges in planning economies of scale and European and Japanese carmakers know only too well that competing with the Chinese is a completely different kettle of fish. It also explains why both the US and EU have placed firewalls in the form of tariffs on EV imports from China simply because their own brands could be wiped out in the process.
This is evident from the rapidly diminishing market share of top brands like Volkswagen in China where they once reigned supreme but now face pressure from EV players like Geely, SAIC and many other local brands. Beyond traditional automakers, the likes of Xiaomi and Huwaei, which are in the electronics space, have also thrown their hats into the EV ring and have a huge list of bookings already in place for their SUVs.
As for M&M, it has been on a high for sometime now thanks largely to the stupendous market response to the Thar and its sibling the Thar Roxx. It then had potential customers floored with the BE 6 and XEV 9e which literally redefined the design game coupled with top-class performance.
The market was gobsmacked simply because M&M had taken the EV package many notches higher with a host of radical features. The duo has now been notching average monthly numbers of 3,000 units combined with the XEV 9e taking up a larger chunk of sales.
We were selling this as a lifestyle SUV statement, what we may call ‘objects of desire’, based on three primary bases of differentiation.Rajesh Jejurikar
Multiplier effect
In one of its more recent Q&A sessions with analysts, the leadership team had said that the dynamics of launching two products at the same time was actually leading to a positive multiplier effect since the two segments are so different. “What we are hearing right now is a very large proportion of people who never considered Mahindra,” Rajesh Jejurikar, ED & CEO, Auto and Farm Sectors, had said.
There were people in the ₹25 lakh-30 lakh car bracket looking at luxury brands or owning a luxury brand. As a result, it was a very different profile of customer than what the company had handled in the past. By the end of the day, M&M was confident that its electric SUV strategy, based on “three primary bases of differentiation” would pay off in the market.
“We had also spoken about the fact that we wanted to launch these as highly aspirational ‘wow’ offerings. We first had to get the customer emotionally connected to “Yeah, I need to own this” or “I really want to own this”, and then start dealing with some of the barriers which come in the way,” continued Jejurikar.
The company had made it clear that it was not planning to retail the new offerings on conventional parameters of economy or fuel saving and so on. “We were selling this as a lifestyle SUV statement, what we may call ‘objects of desire’, based on three primary bases of differentiation. One is the design, the second is the HMI or the intuitive human machine interface and third is the high-tech features,” he said.
Also Read: Mahindra plans world tour on multi-energy, modular SUV platform
Broader horizons
Now, with the new NU_IQ platform, M&M has clearly set its sights on broader horizons. As part of its Global Vision 2027, the company believes there is more headroom to grow with its new basket of authentic core SUVs .
“We will stay true to this space with best in class features and go global,” said the leadership team. The goal is to offer world-beating products with the best ground clearance, super relaxing legroom, huge luggage space and vehicles designed for global safety standards.
M&M has been on a roll lately after losing its way for some years. The recently announced global plans will need to factor in the reality of Chinese rivals who are already going out for the kill while exploring new geographies across Europe, Latin America and ASEAN. M&M has a presence in South Africa and Australia which means it will have its work cut out taking on the Chinese in the coming years.
