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New avatar of Xylo will eat into Innova car sales
Toyota's worries might increase as Mahindra has launched its Xylo car in a new avatar with added features and better mileage than its Innova car. Priced at three lakhs less than Innova, the new Xylo..

MAHINDRA XYLO is now available in its new avatar at a starting price of 7.37 lakh rupees with a better mileage, torque, high power and boasts of industry’s first voice command system besides 50 new styling changes. The car will give a tough competition to Toyota’s Innova car, which is costlier by three lakhs and offers lesser mileage and power.

The makeover car that will soon enter the international markets was launched in Mumbai yesterday amid much fanfare. According to The Times of India, the car claims to give 14 kilometres a litre as mileage with a high power of 120 Bhp while Toyota’s famed Innova car offers only 105 Bhp. Xylo's new model is cheaper by Rs 15000. The old model, XUV500, has sold nearly 34,000 units since its launch last year in September, according to Pravin Shah, M&M chief executive for automotive division.

Though the time frame has not been set yet for entering foreign markets but the company doesn’t fear that the new model will eat into the old model. According to the paper, Xylo has become one of the most successful stories of marketing success as it sold around 1 lakh units, since its launch in January 2009.

Earlier this website had reported that the New Innova car launched at the Delhi Auto Expo recorded sales of 6,794 units and the company had termed it as the robust growth and a good start of the year. “We are happy with the response to the Etios series, the New Innova and the New Fortuner. The increase in the plant capacity has helped us cater to the large demand for our vehicles facilitating higher sales last month. We expect to see a further growth in Fortuner sales with an increase in its production from this month onwards,” Sandeep Singh, Deputy Managing Director- Marketing was quoted in a company press release.

But the launch of cheaper SUV that offers better mileage would definitely affect the sales of Innova because mileage has become a major determinant when choosing cars, given the increase in fuel prices. As experts say, people will chose a car with lesser features if the same car has good mileage and at the same time has affordable features.

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of merinews.com. In case you have a opposing view, please click here to share the same in the comments section.
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