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Old 29th January 2013, 16:13   #1
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Default Mahindra undecided about launching the Korando?

The Indian car maker Mahindra and Mahindra has been quite active at the SUV frontier in India as well as all over the world. They acquired SsangYong Motors and brought the SsangYong Rexton to the Indian market which has been received very well by the Indian SUV lovers and Mahindra has had to ramp up the production of the car already. And as if this was not enough, they are planning another SsangYong product in near future as well.

“We are working on the products. We studied market for both Korando and Rexton and decided that Rexton has a place in Indian market at present so that was given the first priority,” Mahindra & Mahindra Chief Executive – Automotive Sector P N Shah stated after he unveiled the Rexton in Kolkata. He also added that the company had not shelved the plans of bringing the Korando to the Indian market and were waiting for the right time to launch the SUV.

Mahindra has already announced plans of investing USD 900 million for investment along with SsangYong which would be done to bring in new models in future. The Korando SUV will be slotted below the Rexton which makes us wonder if it will cannibalize the sales of their XUV 500 or become a dud seller because the VFM that XUV 500 offers. SsangYong is not a known brand in the brand hungry Indian environment, but seeing the warm welcome the brand has received makes us believe that it is the product which matters and not the brand.
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Old 29th January 2013, 16:24   #2
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Default re: Mahindra undecided about launching the Korando?

Quote:
Originally Posted by rohit_dce View Post
Mahindra has already announced plans of investing USD 900 million for investment along with SsangYong which would be done to bring in new models in future. The Korando SUV will be slotted below the Rexton which makes us wonder if it will cannibalize the sales of their XUV 500 or become a dud seller because the VFM that XUV 500 offers. SsangYong is not a known brand in the brand hungry Indian environment, but seeing the warm welcome the brand has received makes us believe that it is the product which matters and not the brand.
Rohit - this is interesting. is there a link which shares this info?

If Korando is brought in, It would definetly cannibalize XUV5OO sales as i dont see a single gadget which the average buyer misses in the XUV. If Korando becomes a scorpio's replacement, there might be takers. Given today's scenario, many companies have products which cannibalize sales (WagonR VS Estilo) but ultimately, The money goes to the same company whichever model is sold.
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Old 30th January 2013, 00:16   #3
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Default re: Mahindra undecided about launching the Korando?

I dont understand why the Korando would cannibalize the XUV's sales. From my understanding even though both are SUVs they are quite distinct in character. There might be a price overlap somewhere, but they appeal to different kinds of customers. The Korando is targeting the CRV buyer, while the XUV is targeting the Innova, Scorpio, Aria buyer.
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Old 30th January 2013, 07:03   #4
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Default re: Mahindra undecided about launching the Korando?

I read somewhere that Korando means Koreans Can do

Quote:
Originally Posted by mohandasnikhil View Post
The Korando is targeting the CRV buyer, while the XUV is targeting the Innova, Scorpio, Aria buyer.
As far as I know, Korando would be placed between XUV5OO and Rexton. There would be some overlap in terms of price.
All these days I thought XUV5OO is based on Korando!!

Pic : Netcarshow
Doesn't it look similar to Renault Koleos?? Or its just me.
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Last edited by HammerHead : 30th January 2013 at 07:04.
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Old 30th January 2013, 07:39   #5
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Default re: Mahindra undecided about launching the Korando?

Quote:
Originally Posted by mohandasnikhil View Post
I dont understand why the Korando would cannibalize the XUV's sales. From my understanding even though both are
SUVs they are quite distinct in character. There might be a price overlap somewhere, but they appeal to different kinds of customers.
The Korando is targeting the CRV buyer, while the XUV is targeting the Innova, Scorpio, Aria buyer.
There is only one reason I can think. The brand effect. M&M have already maintained that they would position SsangYong product above the XUV price line.
With a brand conscious Indian market, people may not want to pay so much without getting a big logo to their homes.

But M&M are known to keep good pricing. Rexton is priced way below Fortuner (at least 4L and hence gives a good reason to be checked. So may be Korando
because true competition comes from the likes of Yeti/X1. And definitely they would be way below that price point. Off course we need to see how the vehicle
drives. Because I read some where that in spite of 170+ horses, the drive is at best average and not very engaging.

Last edited by ampere : 30th January 2013 at 07:40.
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Old 30th January 2013, 11:01   #6
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Default re: Mahindra undecided about launching the Korando?

This one is off topic, but i am curious as to why Mahindra trying to gamble with Ssangyong brand when mahindra is synonymous with rugged SUVs

What advantage does it have to introduce a totally new brand ?
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Old 30th January 2013, 11:13   #7
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Default re: Mahindra undecided about launching the Korando?

I spotted a brand new white colour Mahindra Ssangyong last night in Frazer town Looked pretty cool to me It took me a while to figure out which vehicle it was until I was able to catch up with it and read the "Mahindra Ssangyong" branding.
Any idea how much this one costs?
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Old 30th January 2013, 14:09   #8
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Default re: Mahindra undecided about launching the Korando?

As per carwale website, Mahindra Ssangyong is expected to launch the Korando C at the price between 15-18 Lakhs(Tentative).

Link - http://www.carwale.com/ssangyong-cars/korando/
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Old 30th January 2013, 14:34   #9
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Default re: Mahindra undecided about launching the Korando?

It's a little tricky for Mahindra actually with regard to the branding. Ssangyong does not have any kind of brand re-call in india. People hardly know about this brand and would not want to put their money against an unknown manufacturer. If Mahindra had just branded the cars under their own, then they may not be able to command a premium. So they have done what is best. Co-branded them and put them in in their own showrooms. This way there is no extra cost involved in setting up new dealerships etc. But it will take a while for people to recognize the brand. If the products are really good, then word will spread and sales will rise. Just like how skoda did when it entered the market in 2001-02.
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Old 30th January 2013, 18:01   #10
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Default re: Mahindra undecided about launching the Korando?

There will be some little up-trading and down-trading when the Korando C comes into India.

It is a soft roader and certainly not as large as the XUV or the Rexton.
It is a monocoque and not a ladder on frame construction.
It will actually be a very good product choice/ option for a person who might be considering one or other of the following vehicles;

1. Mitsu Pajero Sport
2. Outlander
3. Yeti
4. CRV
5. Captiva

Why, had they launched it a year or more ago, like they were being rumoured to do, maybe I would not have minded buying one myself! It is a very good, compact SUV which has a good blend of space, drive-ability, park-ability, safety kit and finesse.

The only drawback is the pricing.

Mahindra is forced to look at "Premium" over and above or at least an overlap with the XUV, else their own internal brand segmentation exercise will get into a mess. This is probably why they have delayed this vehicle's launch for so long, preferring instead to come in with the much larger Rexton where they are able to justify its positioning over the XUV on account of size, specifications, goodies and to our untrained Indian minds, "finesse" as well.
However, neither the Rexton nor the Korando C command that kind of price premium in their own home markets and anywhere else where they are sold.

There lies the rub...we are back to square one, where the Indian consumer is forced to pay premia for some offering just because it is "phoren" and a CBU / CKD import!

How Mahindra is going to solve this problem is anyone's guess.
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Old 30th January 2013, 18:14   #11
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Default re: Mahindra undecided about launching the Korando?

Recently when I went to Colombo I travelled extennsively in a SY Krypton. It was as big as the XUV from the outside but only 2 rows of seating. Wonder where this one fits ?
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Old 4th September 2013, 14:44   #12
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Default Re: Mahindra undecided about launching the Korando?

In another thread elsewhere in the forum, it's mentioned that Mahindra will not have any new launches until FY2016. Is this for their own manufactured passenger 4 wheelers or also for the Ssangyong vehicles?

The updated/refreshed 2014 KorandoC looks swell and I'm hoping dearly that they bring this vehicle to India next year (there was some articles in early 2013 mentioning Mahindra plans to get the Korando C to India in 2014).

Have a look at the vehicle. It looks nice and sports fitting engine options as well.
http://www.autoevolution.com/cars/ss...do-c-2013.html
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