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In quest for local assembly, KUV may change the game, says Mahindra

The KUV100

The KUV100

The KUV100

The KUV100

The KUV100

6th June 2016

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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The facts have not changed, says Mahindra & Mahindra auto and farm sector group president Dr Pawan Goenka, Mahindra still wants to assemble vehicles in South Africa.

However, as he has noted since 2010, Mahindra South Africa (MSA) must reach sales of 6 000 units a year to do so.

MSA sold around 4 000 units in the South African market last year.

Goenka is positive, however, that MSA can reach the required 6 000-unit level by 2018 or 2019, through the introduction of a number of new models, such as the KUV100.

The KUV100 compact crossover launches the Indian manufacturer, traditionally strong in the bakkie and sports-utility vehicle (SUV) markets, into a new segment in South Africa and India – the highly competitive entry-level passenger car segment.

“We hope to make a firm decision on local assembly by the end of the year,” says Goenka.

“If we decide to start the process, it will take around 18 to 24 months to get going.”

Assembly at 6 000 units a year means Mahindra will not qualify for volume incentives under the Automotive Production and Development Programme (APDP), which last year set a limit of 10 000 units year.

This limit, however, is not currently a consideration, and will not influence Mahindra & Mahindra’s decision, says Goenka.

He believes the KUV100 will be able to make inroads into the South African market as it has done in India, where there is a waiting list of around 20 000 units, with monthly sales at around 5 000 units.

“The differentiator is that it is a crossover SUV and not a hatchback as sold by our competitors. We want people to see it as an SUV. It is also very spacious and fuel efficient.

“We believe this will become our best-selling vehicle in South Africa.”

MSA hopes to sell around 100 KUV100s a month.

In the longer term, Mahindra aims for sales of 10 000 to 12 000 units a year in South Africa.

“We want to aggressively grow our market share in the passenger car market, so that it matches our market share in the bakkie and SUV segments,” notes Goenka.

It would help if the South African new-vehicle market expanded, he adds.

The domestic market is expected to end the year around 10% down on last year.

Should Mahindra reach sales of more than 10 000 units a year in South Africa, the company may look at establishing South Africa as a “local export hub”, says Goenka. However, he warns, “this is blue-sky thinking. We have no time frame for these developments”.

Following the June introduction of the KUV100 in South Africa, MSA will launch a revamped Scorpio SUV and Mahindra Thar, as well as an automatic XUV500.

The KUV100
“There is no doubt that the demand for SUVs is on the rise, both from a lifestyle appeal and a practicality perspective,” says MSA CEO Sanjoy Gupta.

“However, SUVs are typically too expensive to purchase and to operate for budget-conscious buyers. The KUV100 seeks to offer access to the benefits of SUV ownership, but linked to the affordability and lower running costs of a small hatchback. The result is a vehicle with broad appeal offering a strong value proposition.”

The KUV100 offers ground clearance of 170 mm. It is 3 675 mm long, 1 715 mm wide and 1 635 m tall. The wheelbase is 2 385 mm.

The KUV100 is offered with the choice of a petrol and turbodiesel engine.

Petrol models are equipped with Mahindra’s new mFalcon G80 three-cylinder engine. The 1 198 cc unit offers 61 kW of maximum power at 5 500 rpm, with a torque peak of 115 Nm, achieved between 3 500 and 3 600 rpm.

The KUV100 can also be ordered with the new mFalcon D75 inte-cooled turbodiesel engine. The three-cylinder mill produces a maximum power output of 57 kW at 3 750 rpm, with torque at 190 Nm, available between 1 750 and 2 250 rpm.

Both front-wheel drive vehicles offer a five-speed manual gearbox.

The flagship turbodiesel model claims fuel consumption of 4.4 litres/100 km.  A power/eco mode function, as well stop-start technology, assist in achieving these figures.

Fuel consumption for the petrol-powered KUV100 is claimed as 5.9 litres/100 km.

Specification levels vary depending on the model, but key features include a folding rear bench seat to boost luggage space from 243 to 473 litres.

An underfloor storage area in the rear of the cabin provides additional stowage.

The KUV100 also features tilt-adjustable steering, arm rest-mounted cup holders in the front and rear, as well as one-litre bottle holders in the door pockets, and 12 V accessory sockets for front and rear occupants.

Power windows, central locking and an immobiliser system are standard across the range.

All KUV100 models are equipped with anti-lock brakes with electronic brake force distribution and corner braking control as standard, as well as dual front airbags, a collapsible steering column, and child safety locks on the rear doors.

Pricing starts at R149 995.

The price includes a three-year/100 000 km warranty, and a three-year/50 000 km service plan on the K6+ and K8 derivatives.

 

Edited by Creamer Media Reporter

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