Separator

How Anand Mahindra Made a Gamble with the SUV Market and Triumphed

Separator

img

When Indian businessman Anand Mahindra turned the wheels toward the Indian SUV category, the market was in for a surprise with his brainchild, Mahindra Scorpio. Considering the unrealized potential of this category, the business leader made technology investments to tailor the car according to the tastes of Indian buyers. The car became a star the moment it hit the Indian roads. It quickly became a pride of the nation as the common man's SUV. Let’s take a ride to know the moves Anand Mahindra made behind the success of Scorpio.

Time and again, Mahindra has always been strong on one goal—to strengthen the local economy and its manufacturing capacities. He worked with local suppliers, which gave way to more local value addition throughout the years.

Made Scorpio’s Launch into a Legendary Entry

Scorpio made one of the most legendary entries in 2002, taking the whole automotive industry by storm. Its production cost about $120 million, or one-fifth of something one of the Big Five would have needed to pay. The mastermind behind it even says that he could have lost his job, considering the risk factor. Instead, Mahindra was showered with praise from the industry for the vehicle’s look, powerful engine, and how it won the likes of Indian buyers. Even the price at which it was sold was also a strategic move by the businessman.

Even though Mahindra has always been known for its reasonable pricing, Scorpio still raised eyebrows with its astounding price rate of Rs.5.5 lakh. This price was comparatively Rs.50,000 less than the popular multi-utility vehicle that was on the market at the time. The base Scorpio model outperformed rival SUVs in terms of strength, technology, and affordability.

A Clever Marketing Push

Mahindra wanted to make SUVs into a common lifestyle product with Scorpio. This meant a strong marketing push to compete with sedans. Catchphrases like ‘walk into not, crawl into’ and ‘Upwardly mobile life of the rich and famous’ were enough to make customers understand how Scorpio differed from sedans, which were a common choice among city dwellers. Over time, Mahindra made Scorpio appear as an enormous personal vehicle, facilitating the luxury of a sedan and the thrill of an SUV through TV ads. As a result, it turned the utility vehicle into a luxury lifestyle and aspirational brand.

Changed the Perception of SUVs

Before Scorpio, people thought of SUVs as rugged cars best suited for rocky roads, only considering their practicality as a redeeming feature. Mahindra waved off those misconceptions by constantly making upgrades and a number of industry firsts, providing excellent refinement to Indian customers at a value-oriented cost.

Spread the Word Worldwide

At first, the model, based on the Scorpio platform, was designed for the global market as a single/double cab Scorpio Pick-Up. In 2003, the work to make market testing and product releases in South Africa, Italy, Uruguay, and Russia, among other places, ensued. It was regarded to take time to show the results due to its limited production capacity (in comparison to major automakers) and the lack of an established brand presence in these nations. But Mahindra went on with an aggressive and persistent approach, which made Scorpio gain worldwide fame over the years in markets including Latin America, Australia, South Africa, and Italy. Then, the leader took it to Spain, Nepal, Sri Lanka, Indonesia, and Taiwan.

In the process, Mahindra realized that it needed to improve in all areas, including technology, safety, and emissions, as it expanded internationally. The updates were initially implemented worldwide and then brought back to India to ensure the same features and quality reached Indian customers. With its ‘Built to Perform’ customer value proposition and aggressive price strategy, Mahindra strongly laid down its foundation as a global provider of dependable, tough, and well-maintained cars with top-notch customer support.

Made Scorpio into a Symbol of Each Person’s Individuality

The leader saw to it that the automobile progressed to a symbol of the driver's individuality and even a way of self-expression than a mere mode of transportation. It’s even believed that Scorpio was the first car to receive customized detailing from the manufacturer. Mahindra gave a plethora of fascinating customization options to customers to fit their style.

Made Scorpio into a TV Star and Made into a Car that Women Can Drive Too

Since SUVs were commonly marketed as cars for 'men,' Mahindra reversed that through his smart marketing technique. He made sure that the marketing and launching campaigns featured women behind its wheels. Bollywood and mainstream media have contributed to the country's cultural fabric by incorporating the Scorpio experience. Cinematic blockbusters such as the Singham trilogy, Dabangg 3, and Simmba see the rugged hero piloting an even more formidable Scorpio.

The Scorpio altered the way people thought about Mahindra and SUVs, making them seem like real automobiles instead of merely people carriers.

 

Since then, Mahindra hasn't looked back. Despite a few speed bumps along the road (such as the abandoned joint ventures with Renault and Ford), the company has evolved into a major force, stifling stiff competition from across the world and winning people over with classic vehicles like the Scorpio, Bolero, and Thar.

Most Celebrated Indian SUV

Scorpio, a brand that navigated the hardest terrains and the farthest beaches, set the standard for fashionable SUVs. However, Scorpio also aroused a sense of national pride. A modest Indian OEM defied convention and cleverly created a top-notch product that could rival enormous international brands both domestically and internationally. Therefore, Scorpio’s fame is not only a victory for the Mahindra group but for the nation's automotive industry as well. The car was garnered with awards, including Best Off-Roader, Best Innovation, Car of the Year, and Best Campaigns from Media Houses. Brand recognition includes TNS's ‘The Voice of the Customer’ Award and the IMRB's ‘Olympic’ category for the second year in a row. Its achievements were further credited by official recognitions such as the CSIR Diamond Jubilee Technology Award 2007, given by the then-prime minister, Manmohan Singh, for the ‘Development and Commercialization of Scorpio.’

One can tell that Mahindra gained the conviction and self-assurance necessary to take even riskier risks, make wise acquisitions, and launch new companies thanks to the Scorpio journey.