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Scorpio Buyers Cancel Bookings, Choose XUV 500
The XUV 500 is now priced at RS.10.89 lakhs (ex showroom Delhi) for the entry level W6 model and the cost can go up to Rs.13.70 lakhs for the top end W8. The on road price of the the top end Scorpio with four wheel drive is a little less than Rs.11 lakhs. And the on the other price of the XUV 500 W6 can go up to Rs.13 lakhs. A difference of Rs.2 lakhs for a more spacious and more luxurious vehicle has meant several people who had previously booked the Scorpio have now canceled their bookings.
Recent reports on the bookings of the XUV 500 say Mahindra has already received more than 6,000 bookings. According to a buyer who visited a Mahindra showroom a couple of days after the launch of the XUV 500, the scene was quite evident. Almost every XUV 500 that was allotted to the showroom had been sold but there were several unsold Scorpios that were to be delivered to buyers.
There were more than 40 cancellations of the Scorpio in one showroom alone. All the buyers had opted for the XUV 500 W6. The showroom's manager was very concerned about this new trend. He said the Scorpio would suffer a huge drop in sales if the price difference between it and the XUV 500 is not increased. A sales executive at the showroom also said the same and added his incentives for the month vanished completely after the cancellation of Scorpio's bookings. Executives do not get incentives for new models such as the XUV 500.
Mahindra and Mahindra had hinted about a price increase for the XUV 500 on the same day it had announced the price of the new car. We expect at least a marginal increase in price of the XUV 500 within the next three months. Mahindra would prefer to have better sales of the Scorpio rather than risking an internal cannibalization by the new SUV. We wonder if the Xylo, a lifestyle SUV that has created a niche for itself might also be in danger from its stable mate. Speculations aside we need to wait and watch.
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