Mahindra XUV700 Sales Hit Record High in Premium SUV Segment

The Mahindra xuv700 has been setting new records in sales for the premium sub-4 meter segment in India, rewriting benchmarks for the segment altogether. Its combination of impressive tech and price has proven popular among urban families and corporate buyers, driving the success of the brand’s flagship SUV.

Since then, the vehicle's combination of roominess, high mileage ratings, and strength has allowed it to compete with already established competitors in the segment. The 2024 Mahindra XUV700 takes this success story a step further with significantly improved features and performance dynamics, making it a formidable contender in the premium SUV segment.

Premium SUV Segment Witnesses Paradigm Shift

With the luxury SUV landscape rapidly evolving, performance and comfort becoming the leading reason consumers make a purchase. Now, more than ever, the premium sector has seen a move toward cars that combine prestige with modernity, as safety features and infotainment systems are becoming dealmakers for buyers.

Consumer Preferences Evolution

SUVs have come to dominate the best-selling lists, with around half of all premium and luxury car buyers in Europe looking to purchase an SUV next. This change highlights wider shifts in consumer behaviour, especially amongst younger demographics who require vehicles to suit their lifestyle along with practicality. The growth of the individual segment is primarily due to the rising demand for premium features, advanced safety systems, and luxury amenities.

There has been a notable pivot toward sustainability in the luxury SUV space, too. BEVs and hybrid SUVs accounted for 12% and 18% of total SUV sales in the industry, and with the global automotive industry's shift to all-electric cars, this percentage is most likely going to increase in the future. Its ultra-wide success is plainly visible in North America and seeing and Europe, both where demand remains powerful for premium and high-tech electric SUVs.

Technology is the engine of premium positioning.

A key differentiator in positioning luxury SUVs is now the salience of technology. As a result, manufacturers are adding several features, including driver-assistance systems, connectivity options, and AI-enhanced safety measures. As an example, the Mahindra XUV700 measures up, featuring 83 connected car features, thanks to its Adrenox suite, such as firmware Over-the-Air and advanced prognosis features.

Traditional markers of luxury have changed as the premium segment has evolved, with technology innovation becoming a key differentiator. These are the things that now become part of modern luxury SUVs:

•   Advanced driver-assistance systems (ADAS)
•   High-resolution infotainment systems
•   Biometric monitoring capabilities
•   Over-the-air update functionality
•   AI-powered personal assistance

Meanwhile, the market has seen a surge in demand for customization options, with 84% of potential luxury vehicle buyers in China rating personalization as important or very important. This preference for individualization extends beyond mere aesthetics to include advanced connectivity features and integration with local digital ecosystems.

XUV700 Interior Redefines Luxury Standards

Stepping inside the Mahindra XUV700 reveals a sophisticated dual-tone black-and-beige interior adorned with soft-touch materials and metal inserts. The cabin's wing-inspired dashboard design, combined with premium leatherette seats, establishes a new standard in the segment.

The 2024 model elevates comfort through ventilated front seats and introduces captain seats in both AX7 and AX7L variants. The driver's seat offers 6-way electronic adjustability with memory function, coupled with first-in-segment memory ORVMs linked to custom seat profiles.

Panoramic Sunroof Drives Appeal

The XUV700 comes with the biggest panoramic sunroof in its segment, measuring 1360 mm in length and 870 mm in width. This “Skyroof” feature floods the cabin with natural light, creating a loftier feel that adds to the sense of spaciousness.

The infotainment system integrates over-the-air updates with a dual HD 10.25-inch display configuration as well as a separate digital cluster. As a bonus, the premium audio experience is through a 12-speaker Sony 3D immersive sound system carefully positioned around the cabin.

FEATURES IN A CONNECTED CAR APPEAL TO BUYERS

The Adrenox suite of the 2024 XUV700 now includes all 83 connected car features, such as 13 new features. These advanced features are divided into:

•  Machine alerts (like Maintenance Alerts), Vehicle Status Monitoring
•  Real-time tracking with Location-Based Services
•  Functions Remotely, including climate control
• Add Third-Party Apps
• Connected Safety and Novelty Features

More specifically, there's the AdrenoX Connect App for remote access to various vehicle features, such as geo-tracking, remote locking and unlocking, and pre-cooling or heating the cabin before a journey. Comprehensively, the system comes with wireless connections for Android Auto and Apple CarPlay, with a focus on easy integration of any smartphone.

Inside, the premium quotient was increased by overdoing chrome in the dark on air vents and the central console. Must-have comfort features include dual-zone climate control, an air purifier, and keyless entry with push-button start. The cabin highlights the model's versatility with both 5-seater and 7-seater configurations.

Fleet Operators Driving Commercial Demand

So much so that the Mahindra XUV700 has received phenomenal commercial demand thanks to innovative delayed leasing and subscription models. In June 2024, stated bookings were up 23% per month, and fresh orders were 8,000 as opposed to a production of 7,000 units per month.

Expanding Corporate Leasing Programs

Mahindra has a leasing ecosystem with a variety of flexible options for corporate customers. Orix is India's largest vehicle leasing player and partners with the company to offer customized solutions via a digital platform for a smooth onboarding process for clients. Later on, the digital-first car leasing marketplace Quiklyz improved accessibility for corporate customers.

The leasing programs offer specific benefits:

•  No money down All Requirements
•  Full maintenance coverage
•  Cast of coverage, including insurance and roadside assistance
• So you can upgrade your post-tenure options flexibly

The vehicle leasing industry is expected to witness a CAGR of 15-20% in the next 5-10 years. Most of this growth is driven by companies that need a truly economical fleet solution that also doesn’t tie them to fleet ownership.

Tourism Sector Adoption Rises

Advantaging factors for the tourism sector -> low price, better average. Its ability to "gobble up dirt roads" gave it an edge in tourism operations as a vehicle that can take tourists through all sorts of terrain types.

As a result, the Mahindra Own Easy program has seen a lot of traction in small and medium enterprises in the tourism sector. This subscription package model enables organizations to:

• Get access to brand-new vehicles without any capital investment
• Facilities Usage Periods based on season-driven needs
• Monthly fees are paid based on the time used
• Zero Road Tax obligations — allowing for operational flexibility

In fact, the digital transformation extends to service cost transparency and automated maintenance reminders. The platform enables customers to manage their vehicle's service requirements through a single interface, streamlining the maintenance process.

Customer Satisfaction Scores Improve

Service quality metrics indicate positive trends in customer satisfaction. Authorized service centres have demonstrated marked improvements in addressing customer concerns and following up diligently on feedback. The implementation of standardized service protocols has resulted in consistent service quality across locations.

Nevertheless, Mahindra acknowledges areas requiring attention and has initiated programs to enhance service standards. The company's focus on service excellence includes regular training programs for technicians and service advisors. These initiatives aim to align service quality with the premium positioning of the XUV700.

The roadside assistance service has received particular praise for its responsiveness and effectiveness. This 24x7 support system, available with coverage starting at ₹3 per day, provides comprehensive emergency assistance. The service network's capability to handle the XUV700's advanced features, including AdrenoX-connected car technology, demonstrates the company's investment in technical expertise.

Service centres now maintain dedicated teams for handling sophisticated features such as ADAS systems and connected car capabilities. This specialization ensures proper maintenance of the vehicle's advanced technology suite, including the AdrenoX system's 83 connected features.

How Does XUV700 Mileage Impact Sales?

According to the company, positive word of mouth for diesel variants drives 74% of overall sales between April and July 2024. Buyers looking for a blend of power and economy have also flocked to the vehicle.

Fuel Efficiency Attracts Family Buyers

One such figure is the mileage of the XUV700, which exceeded some projections, particularly for the diesel models. It has a 60-litre tank, providing a theoretical range of 723 km. And when put to the real-world test, efficiency numbers remain consistent, with drivers reporting:

• Highway fuel economy at a steady 100 km/h
• Mixed driving achieving balanced consumption
• Improvement of city-oriented driving via engine response optimization

Moreover, the car maintains consistent fuel consumption behaviour regardless of driving conditions, making it ideal for commuting in the city or going on a road trip. In fact, the impressive efficiency figures, especially on the diesel variants, have led to an increasing share of the market.

Performance-Economy Balance

Drivetrains of the XUV700 are a testament to sophisticated engineering: diverse outputs are on offer. The 2.2-litre diesel engine is available in two different configurations:

• 155hp version with 360Nm torque
• 185hp version with 420Nm of torque (450Nm in auto)

Typically, the freshness of the engine makes for smooth but well-controlled acceleration that doesn't sacrifice economy. Thanks to the engine's refined advanced direct fuel injection setup, the power delivery does not vary under any driving conditions.

Compared to the competition, the fuel economy figures of the XUV700 are more in line with its premium albeit practical positioning as an SUV. Its advanced multi-chamber suspension system is designed to ensure optimal ride comfort without compromising efficiency on any surface.

The manufacturer has given it several technologies to help maximise fuel economy. Routine maintenance practices such as suitable tyre pressure management and maintenance intervals save efficiency during periods of usage. Cruise control on the highway also does its part for consistent fuel safety.

A 200hp/380Nm 2.0-litre turbocharged petrol engine is the more desirable option for buyers looking for a plush performance. The sub-six-hundred-cc engine options offer a broad swell of low rev torque for assured performance and acceptable fuel consumption.

Safety Features Drive Consumer Confidence

Safety ratings remain at the top of the list of reasons that contribute to the Mahindra XUV700's popularity in the market, with extensive crash test result data edifying its structural solidity. Safety—the vehicle has set new standards in the luxury SUV segment with stellar Global NCAP performance and pioneering driver assistance technologies.

5-Star GNCAP Rating Impact

The XUV700 received a five-star rating (16.03/17) by Euro NCAP for adult occupant safety. Its overall performance was also strong in terms of child occupant protection, receiving a four-star rating with a score of 41.66 out of 49 points.

First, the results of the crash test analysis showed excellent levels of protection across critical areas of the body. Dummy movement showed good protection of the head, neck, chest and knees for the front seat occupants. Instead of compromising on structural integrity, the XUV700's stable body shell and footwell area showed a high level of tolerance towards additional loads during impact tests.

The child occupant protection systems on the vehicle have worked exceptionally well.” Most importantly, the child seats of the 3-year-old and the 1.5-year-old were not exposed to forces during the crash thanks to the ISOFIX anchorages and support legs. Apart from these features, the SUV packs:

• Full suite of seven airbags for complete occupant protection
• Electronic Stability Program (ESP)
• Driver drowsiness detection
• ISOFIX child seat mounts
• Personalized safety alerts

ADAS Technology Leadership

Starting with the XUV700 really set the pace for advanced driver assistance systems among Indian manufacturers. After its introduction, it became the first Indian brand to offer Autonomous Emergency Braking (AEB) as a safety option. ADAS: The Advance Driver Assistance System is an advanced group of functions that utilizes several sensors, radars, and cameras to monitor the environment around the vehicle.

ADAS updated some with several vision algorithms that rely on camera visual data to determine actions. Thanks to this state-of-the-art technology, the system offers:

In this version, we will stick to more advanced safety features such as the Forward Collision Warning (FCW) with Autonomous Emergency Brakes, which recognizes sudden braking of vehicles in front or unexpected pedestrian crossings. Smart Pilot Assist uses radars and cameras to keep a safe distance from vehicles around.

It’s sophisticated enough to recognize traffic signs and monitor the driver. Finally, the cameras and software can see the speed limits and other road signs, and they can automatically change what’s happening to the car as needed. It utilizes a driver monitoring system that closely watches how often the driver adjusts the steering wheel and whether they start to engage in unusual driving patterns associated with fatigue or distraction.

The front and rear bumpers of the XUV700 feature multiple radar sensors, which have medium and long-range detection capabilities. The sensors, along with high-resolution cameras on the front windshield, allow the vehicle to detect lane markings, read signs, and recognize potential hazards.

The alacrity with which these safety features have been implemented has helped build up consumer confidence tremendously. The sensors used to detect objects and the circuit boards that interpret signals are located in front of the car, and their skills work in tandem with passive safety measures to create layers of protection for the occupants. This holistic approach towards safety has established XUV700 as a benchmark in its segment and has struck a chord with safety-conscious buyers looking for advanced protection features in their vehicles.

Financing Partners Report High Demand

Now, ICICI BANK issues the TYPES panel loans for Mahindra XUV700 in 5-10 minutes. This quick approval process indicates strong market confidence in its value proposition.

Competitive EMI Schemes

Banks are also offering some lucrative financing options for the XUV700, starting from a 9.1% p.a. interest rate. With 100% on-road funding support, you can get a loan directly from ICICI Bank without paying very large up-front payments. Or, Bajaj Finserv offers flexible repayment with their New Car Loan.

Competitive EMI Schemes

Major banks offer attractive financing options for the XUV700, with interest rates starting from 9.1% per annum. ICICI Bank provides 100% on-road funding assistance, eliminating the need for substantial upfront payments. Alternatively, Bajaj Finserv extends flexible repayment options through its New Car Loan program.

Current EMI options demonstrate the vehicle's accessibility:

• Monthly payments starting at ₹41,382 for a loan amount of ₹13,05,156 over 36 months at 8.8% interest
• Extended tenure options up to 60 months with EMIs beginning at ₹38,166
• Customizable down payment options ranging from 20-30% of the on-road price

Initially, lenders evaluate customer profiles through CIBIL scores, offering interest rates between 8.75% and 11.50% annually. Primarily, banks finance up to 90% of the XUV700's on-road price, with select customers qualifying for complete funding.

High Resale Value Projections

Resale value trends help maintain strong resale values on the XUV700, helped by steady demand and high sales numbers. The auto segment clocked a stellar 75% growth as total vehicle sales stood at 1,74,098 units in Q2. This impressive performance ultimately means the vehicle does well in the resell space as well.

This makes the XUV700 a strong competitor in the market:

• Sep 2022: Record monthly bookings – 53,000 units
• Steady average monthly booking rate (48 thousand units versus production capacity)
• Order backlog of about 16,000 units

The value proposition of the vehicle has remained (on-the-road acceptance and improvements). Request-for-sale activity has generally remained strong, too; monthly bookings were 23% higher in June 2024, a sign that sales demand is holding steady and supporting resale expectations. Manufacturing ramp-up (64K/month before FY2025) gives them adequate supply assurance in the market without having to sacrifice the resale value.

Potential purchasers enjoy a range of financing innovations, including digital-first application processes and streamlined document requirements. With major banking partners all across India, they can touch everyone with their funding options. With different lending institutions, interest rates continue to be competitive with considerable variation depending on loan tenure and customer profile.

Its strong long-term performance in terms of vehicle sales, reaching a collective 165,877 units (July 2024), cements its place as an indispensable addition to any collection. This sales increase - a 22% growth YoY - indicates a stable long-term retention of value. The maker's plans to ramp up production capacity to 72,000 units per month by 2026-end suggest confidence in lasting demand.

Global Recognition Boosts Brand Value

All of this has led to the Mahindra XUV700 achieving a brand value above that of any other vehicle. The SUV has earned global accolades for its outstanding performance in safety and quality tests, raising benchmarks in the premium SUV segment.

International Awards

Global NCAP honoured the Mahindra XUV700 with their coveted 'Safer Choice' Award, the second Mahindra product to clinch this honour. This accolade is primarily only for automakers that are working toward the topmost safety levels for cars in the Indian market. Its performance in safety assessments was rated as five stars for adult occupant protection and four stars for child occupant protection.

Its journey has been a glorious one,ne with the XUV700 winning over 40 prestigious awards. These accolades include:

• Indian Car of the Year (ICOTY) 2022
• Car of the Year — Value for Money
• Executive SUV of the Year
• BBC TopGear India Car of the Year 2022

Global NCAP Secretary General Alejandro Furas noted that Mahindra was the first Indian-made and owned brand to offer AEB as an improver of vehicle safety as an option. No wonder that development puts the XUV700 region on par with global safety standards.

Export Market Performance

The XUV700's global expansion follows a strategic three-phase plan, with the first phase targeting major Right-Hand Drive (RHD) markets. South Africa emerges as the largest export destination, where the vehicle has established a strong presence. Markedly, Mahindra's export operations have shown robust growth, with a 57% increase in international shipments.

The manufacturer's export strategy encompasses the following:

• Primary focus on RHD markets, including Nepal, Bhutan, and Sri Lanka
• Strategic expansion into Australia and New Zealand
• Future plans for European market entry with EV variants

The vehicle's international success is reflected in its consistent performance across diverse markets. Auto enthusiasts and critics in Australia and South Africa have praised the XUV700 for offering features and performance comparable to more expensive competitors. Simultaneously, the manufacturer has strengthened its global presence through enhanced production capabilities and strategic market positioning.

Quality Benchmarks Met

The XUV700 is on par with the most stringent international standards in terms of quality. To qualify for the Global NCAP 'Safer Choice' Award, the vehicle had to meet the following criteria:

Certified 5-star for Adult Occupant Protection under the  most recent Global NCAP New Market Test protocol

Achieved a 4-star rating for Child Occupant Protection

Proven performance in meeting Electronic Stability Control (ESC) requirements

Engineered to meet UN regulations for Pedestrian Protection

The crash-worthy structure of the vehicle includes advanced safety features that noticeably beat standard specifications. These include:

1. Seven airbags, including curtail airbag for third-row occupants
2. Knee airbags (driver) and large area side impact protection
3. Advanced Driver Assistance Systems (ADAS)
4. Frontal and side impact sensors to ensure proper airbag deployment

Mahindra’s focus on safety features has been duly recognized by David Ward, Presiden, Towards Zero Foundation, who also acknowledged the five-star score of the XUV700 as nothing less than an achievement. The quality metrics of this vehicle are not limited to the prodigious safety features but include manufacturing prowess and technological advancement as well.

But what makes the XUV700 special is its all-rounder quality, where it has been placed up there when it comes to global quality & safety. Global NCAP conducted over 50 safety assessments between the years 2014ando 2022, and the XUV700 emerged as one of the best performers. This knowledge has translated into bolstered consumer confidence in overseas markets.

The manufacturer's commitment to quality is reflected in its investments in research and development. With world-class design, engineering and testing facilities, Mahindra's made an SUV for home and world audiences. This has enabled the car to also cater to worldwide standards of quality, making it competitive with established international brands, generally with better features at competitive price levels.

Conclusion

Mahindra XUV700 has also managed to reach this level of success by being exceptional in every field. The sensation behind its sales figures reinforces this supremacy, and equipped with five-star GNCAP ratings, it exudes trust in its structure.

And a robust commercial demand, particularly from fleet operators, highlights the vehicle's practical appeal. ADAS technology and competitive fuel economy factor into the XUV700's positioning as a reference point in the premium SUV segment.

Consumer sentiment is fostered by Mahindra's broader service network, convenient financing options, and international reputation. Without a doubt, the combination of luxury, technology, and value delivered by the XUV700 has set new benchmarks for the automotive industry, a point proven by the order backlog and consistent demand for the vehicle in the market."

So, the XUV700's staying power comes from key aspects such as versatile connected car features, intelligent interior features, and advanced robust safety systems. With that said, this flagship SUV keeps reshaping expectations in the premium segment with constant refinements and innovations.