Mahindra and Mahindra is planning to introduce a small Mini Xylo model in the Indian market. The company has been planning to bring a smaller SUV model in the country that can compete with Premier Rio placed in price segment of around Rs. 5 lakh. The base model of Mini Xylo is expected to be less than Rs. 5 lakh.
The new model is expected around 2011, revealed company sources requesting anonymity while official spokesperson declined to comment on the same. The expected length of the model is less than four meters which will attract 10 percent duty similar to compact hatchback models in the country. Currently the duty structure on cars with more than four meter length is 22 percent.
The 5-lakh price band currently accounts for country’s 60 percent of sales figure and an SUV in the range of Rs. 4.5-5 lakh will directly compete in the small car segment having best sellers like Ford Figo, Maruti Swift, Hyundai i10, Chevrolet Beat and Tata Indica. Interestingly, initially Mahindra had positioned its Xylo sedan as a replacement to compact sedans but in practice failed to do so.
