Mahindra and Mahindra (M&M) launched the Thar Roxx, an aggressively priced SUV, on Aug. 15, as the company looks to take on rivals like Tata Motors, and Hyundai in the affordable and mid-range SUV segments.

What Happened: M&M aims to capture a larger share of the SUV market, particularly in the over ₹12.50 lakh segment. The new Thar Roxx is priced starting at ₹12.99 lakh, ex-showroom.

Rajesh Jejurikar, M&M Executive Director and CEO, Auto and Farm Sector, stated that the Thar portfolio could become a major volume driver in the next two to five years, according to a report by Moneycontrol.

"Models priced above ₹12.5 lakh comprise around 45% of the SUV market, and we have a market share of 27%. So, we have the opportunity to make Thar the number one brand over the next three to five years in the ₹12.5+ lakh category," said Jejurikar, addressing reporters at the launch.

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The Thar Roxx is expected to appeal to both urban and rural markets. M&M plans to produce up to 4,000 units per month at its Nashik plant.

Why It Matters: The launch of the Thar Roxx comes at a time when Mahindra & Mahindra is seeing significant growth in its SUV segment.

In August 2023, the company sold over 5,951 units of its flagship Thar model, translating to around 191 Thars sold every day. This marked a 56% increase from the same period last year, highlighting the rising demand for Mahindra’s SUVs.

In addition to the Thar Roxx launch, M&M is also looking to expand its manufacturing capabilities. The company is seeking government approval for a joint venture with China's Shaanxi Automobile Group to set up a $3 billion manufacturing unit in Gujarat.

This venture aims to create an export-oriented hub for assembled cars, engines, and car batteries, further solidifying Mahindra’s position in the automotive market.

Moreover, M&M’s shares recently surpassed the ₹3,000 mark for the first time, following an investor day where the company announced plans to launch 23 new models by 2030.

The company also outlined a capex of ₹27,000 crore between FY25 and FY27, indicating robust future growth prospects. Brokerage firms have responded positively, with Nuvama Institutional Equities raising its target price for the M&M stock to ₹3,500.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.