Will Mahindra XUV 700's Influencer Campaign Pay Off in Nepal?

Agni Group, the authorized dealer of Mahindra in Nepal, has recently launched a series of ads to promote the newly launched XUV 700. The SUV that has found huge success in India is getting promoted in Nepal via a campaign featuring prominent influencers. Mahindra's series of digital ads on social media platforms showcase influencers like Swastima Khadka, Paras Khadka, and Vidushi Rana, among others, affirming their love for the vehicle. However, we at BrandGuff, have one particular concern about the campaign - Do the influencers align with the brand and do they cater to the consumer segment that Mahindra XUV is looking to target?

From a technical standpoint, the video series has done a flawless job when it comes to conveying the value of XUV 700. Marked by excellent cinematography and top-notch narration, the video ads also capture the essence of storytelling by imparting how the SUV makes a difference in the lives of the featured influencers and celebs. Put differently, the campaign signals that XUV 700 embodies a change that spices up the lives of its customers. That being said, the campaign, however, fails to appeal to the target consumers of XUV 700 when it comes to the choice of influencers.

The primary factor to be understood is that SUVs are a luxury want in Nepal. There is a stark contrast in the consumer behavior of the Nepalese when compared to other countries. Massive import taxes increase the price of automobiles by almost threefold in Nepal. Simply put, a vast majority cannot afford to buy such expensive cars. Here, the problem in the choice of influencers persists because the potential customers of XUV 700 do not resonate with them. Although they boast a massive number of social media followers as well as fan followers, very few would arguably make their purchase decisions based on their endorsement.

Not to forget, XUV 700 is a high-end vehicle with its price ranging from Rs 74 lakhs to Rs 1.10 crore, depending on the chosen specifications. Vehicles ranging in such prices are generally purchased by top-level corporate managers and top-performing businessmen. Here, Vidushi Rana is the only personality who comes from a corporate background and connects with the target customers of XUV 700. BrandGuff feels that other featured influencers in the campaign do not resonate with that particular segment of luxury vehicle buyers in Nepal.

As per rumours, XUV 700 is yet to make any sales in the Nepalese market. Considering the crisis state of Nepal where banks do not sanction vehicle loans readily, Mahindra's inability to sell its latest SUV is understandable. But as brand & marketing enthusiasts, we believe that the digital video campaign has also not been up to par because of the choice of influencers. Would it not make more sense if the SUV was endorsed by influencers who themselves could be potential buyers of such luxury cars and able to influence the purchase decisions of potential customers?