Will sales of the Mahindra XUV900 cannibalise XUV700?

I do not believe cannibalization will be a large issue. Buyers for the XUV900 and XUV700 will be different. The one is for the family oriented customer and the other for someone who wants to make a style statement.

Of course it'll cannibalize sales! In other words, Mahindra is competing with itself here. Instead, they should have worked on the XUV700 and not released a new model so soon.

It's all about market segmentation. Indeed, if Mahindra can position the XUV900 as a more premium offering than the XUV700, it can actually help upsell customers who were thinking of buying the top end of the XUV700.

I was planning to buy the XUV700 and the XUV900 has surely made me rethink that. I may wait to see what other features it offers. It's inevitable that some cannibalization occurs.

I think we’re overestimating the overlap here. The XUV900 has polarizing coupe styling. This will then draw its own niche of buyers who would never have considered the XUV700.

Cannibalization isn't always bad. That’s a win for Mahindra if they can keep customers within their brand by giving them more choices. Losing customers to competitors is better than cannibalizing your own sales.

The real question is whether Mahindra can produce enough to satisfy the demand for both? If they can't deliver XUV700s on time, launching XUV900 will probably just anger the customers further.

Let's not forget pricing. If the XUV900 is too much more expensive, it might actually make the XUV700 look an even better value proposition. In the end, it could increase sales of both models.