- 30 Apr 2024
- ICICI Securities
Launches compact SUV i.e. XUV 3XO offering great value proposition
M&M - 2515 Change: 212.30 (9.22 %)News: M&M has launched the much awaited and teased compact SUV i.e. XUV 3XO at an event held yesterday. Developed with an investment outlay of ₹ 650 crore, XUV 3XO is equipped with Bold, athletic silhouette that commands attention, best-in-class forward visibility of 23.7°, R17 Alloy Wheels, 35 standard safety features including 6 airbags, ESC with Hill Hold Control (HHC) & All 4 Disc Brakes. It has 6-speed AISIN 3rd Gen Automatic Transmission, powered by 1.2 L TDGi and 1.5 L Diesel engines. It also has Twin HD Screens – one 26.03 cm infotainment and the other 26.03 cm full digital cluster, Harman Kardon Premium Audio, 360-degree surround view system with blind view monitor. It is being offered in the price range of ₹ 7.5 -15 lakh/unit (ex-showroom Delhi) with addressable market size pegged at ~6 lakh units.
Views: XUV 3XO boosts of best-in-class features at every attractive price point offering great value proposition for customers. Company has packaged a lot of high-end tech features offered in its best-selling product i.e. XUV 700 into this model i.e. XUV 3XO, hence we are of the view that it could be an immediate hit with customers who desired XUV 700 but were deterrent of it due to its sheer size. XUV 3XO offers largely same features (Sunroof, ADAS-Level2, Big infotainment screen, safety and performance) at a shorter space/dimensions. With healthy pending order book and augmented production capacity (50,000 units per month now from 40,000 units earlier) we expect M&M to outperform the domestic PV space over FY24-25E and is our top bet in OEM domain. We have a positive view on the stock.
Impact: Positive