Mumbai: Mahindra and Mahindra on Wednesday said its upcoming compact SUV named XUV300 will be launched in February next year. Built on the X-100 platform, which has produced SsangYong Tivoli, XUV300 will be launched in both the petrol and diesel variants. Mahindra’s Korean subsidiary SsangYong has sold over 2.6 lakh Tivoli in over 50 countries since its launch in 2015.

The compact SUV segment currently accounts for about 60% of overall SUV volumes, Mahindra managing director Pawan Goenka said, adding that the carmaker is looking to corner about 15% market share of the segment with the new vehicle.

“We have given some very advanced and unique features in our XUV300. So, within the Compact SUV segment, we are going to position it as the premium product," Goenka told reporters. As of now, the company does not have a very strong product in the compact SUV segment and XUV300 will fill this gap.

Mahindra currently sells three compact SUVs, namely the KUV 100, TUV 300 and Quanto, productions of which it wants to cease, Mint reported on 21 September.

The compact SUV segment, dominated by Maruti Suzuki’s Vitara Brezza, has been growing at a compounded annual growth rate (CAGR) of 44% over the last five years while the current market size its stands at around 35-40,000 vehicles per month.

“It is a fast growing market and we want to capture a sizable markets share out of the segment," said Rajan Wadhera, president (automotive sector) at Mahindra and Mahindra.

The 5-seater XUV300 will be manufactured at Mahindra’s Nashik facility.

Goenka said that the company plans to launch the new vehicle in overseas markets alongwith its rollout in the domestic market. He also said that the company is working on the an electric version, which is expected to hit the market in 2020.

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