New generation Mahindra Bolero to be based on the new U171 platform
Mahindra is gearing up to introduce the new generation model of its long running Bolero. The company’s commitment to bolstering its internal combustion engine (ICE) portfolio is evident in the development of a new architecture, the U171 platform, expected to underpin a range of SUVs and pickup trucks. This move aims to cater to the diverse needs of its customer base and maintain a strong presence in both urban and rural markets.
The upcoming Bolero is set to ride on the U171 platform, representing a substantial investment exceeding Rs. 2000 crores over the next decade. This platform is not only expected to breathe new life into the Bolero franchise but also serve as the foundation for a variety of vehicles, including SUVs and pickup trucks.
The potential volume, with at least three SUVs projected to be introduced on this platform, could reach 1.5 lakh units annually. As the pickup range transitions to the U171 platform, this volume may even double.
The Bolero has been a consistent performer, especially in the Central and North regions of India. Despite the launch of newer models like the Thar, XUV700 and Scorpio, the Bolero has maintained a loyal customer base and continues to contribute significantly to the company’s sales. The upcoming Bolero aims to elevate its position in smaller towns and cities, leveraging its established brand equity and catering to the demands of customers in these markets.
The Bolero family currently accounts for 20 percent of Mahindra’s total sales, with an impressive average of 8000 to 9000 units sold per month. The profitability of the Bolero franchise is expected to be higher than its volumes, showcasing the enduring appeal and financial significance of this model. Additionally, the pickup trucks on the Bolero platform have been instrumental in securing Mahindra’s dominant share, exceeding 60 percent in the pickup truck segment.
Rajesh Jejurikar, the Executive Director and CEO of Mahindra & Mahindra, emphasised the company’s commitment to the ICE segment during a recent analyst briefing. Despite the growing focus on electric vehicles, Jejurikar assured stakeholders that Mahindra recognises the importance of fortifying its position in the internal combustion engine space. He highlighted that even if electric vehicles constitute 30 percent of the market in the next three to five years, the significant 70 percent still belongs to ICE vehicles.
Apart from the next-gen Bolero, Mahindra has a slew of other models in the pipeline, including the XUV300 facelift set to debut in the first quarter of 2024 and a 5-door Thar expected in the second half of the same year. The company’s substantial backlog of 2,86,000 bookings underscores the continued demand for ICE models, led by popular choices such as the XUV700, Scorpio N, Scorpio Classic and Thar.