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Old 23rd April 2010, 11:31   #1
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Default Mahindra slashes prices of the LOGAN by upto 80K

More info on the Logan price cut from the Official press release:

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Logan prices rationalised, to become more competitive

  • Prices reduced in the range of Rs 27,000 to Rs 80,000 for BS III variant
  • Reduction in the range of Rs 24,000 to Rs 65,000 for BS IV variant
  • New prices with effect Monday, 26th April, 2010
  • Prices rationalised making Logan a better value proposition

Mumbai April 22, 2010: In keeping with its objective of providing a better value proposition to its customers, Mahindra Renault Private Limited (MRPL) today announced the rationalisation of the prices of its brand Logan. The prices have been reduced to the extent of Rs 27,000 to Rs 80,000/- for its BS III variant and to the tune of Rs 24,000 to Rs 65,000 for the BS IV version (both variants ex showroom Delhi).

The Logan which has been acknowledged for its superior performance in its category is available at newer prices with effect from Monday, the 26th of April, 2010 keeping in mind the company’s strategy of providing a better value proposition to its customers.

Announcing the new prices, Mr Rajesh Jejurikar, Chief Executive, Automotive Division, Mahindra & Mahindra said, “The rationalisation of the prices of the Logan have been made so as to provide a better value proposition for our customers. All the significant features of the Logan are now available at a much more affordable price. We would now like the pricing to make us more aggressive in the market. Mahindra remains committed to our customers and to the success of the Logan”.

Post the new agreement between Mahindra and Renault, it would help in providing an opportunity to chart out a new strategy to help drive the Logan brand. Mahindra will be responsible for the manufacturing, sales and service of the Logan in India which also implies relevant changes from the engineering point of view, in keeping with customer requirements
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Old 23rd April 2010, 13:34   #2
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With such a substantial reduction in prices for the Logan sedan, one can imagine the competitive price of a Logan notchback, if M&M decide to develop one.

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Originally Posted by Technocrat View Post
I think they want to be present everywhere in the Automotive market. Their recent Purchase of Kinetic & now the Logan gives an Indication that they want to be an All rounder Automobile company with products ranging from Tractors, UVs, Sedans to two wheelers.
+1 to that. M&M certainly has an eye on the future. UVs are its bread and butter right now, but they realize that 10-15 years down the line, their vehicles will have to be lighter, much more fuel efficient and will have to rely less on combustion.

By then cars will be taxed and insured according to their emissions levels, fuel efficiency/engine capacity. This is the already the case in developed markets and will be the same in India in years to come. In this scenario, it becomes imperative for M&M to invest in smaller, lighter and cleaner vehicles.
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Old 23rd April 2010, 15:10   #3
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After the recent price cut, the BS-III petrol Logan will be available at Rs 4.86 lakh and the diesel variant at Rs 5.65 lakh (ex-showroom Delhi). The BS-IV version of the petrol Logan will now come at Rs 4.89 lakh and the diesel variant at Rs 5.80 lakh (ex-showroom Delhi).

Source :M&M cuts Logan prices - BloombergUTV.com
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Old 23rd April 2010, 15:13   #4
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They've said that Rationalization is how they were able to achieve this price reduction.
Not going to ask why & how it happened, especially by this percentage.


But if they had done it earlier, they would have kept the not only the brand name, but also the partnership.
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Old 23rd April 2010, 15:20   #5
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Quote:
Originally Posted by rishab.k View Post
After the recent price cut, the BS-III petrol Logan will be available at Rs 4.86 lakh and the diesel variant at Rs 5.65 lakh (ex-showroom Delhi). The BS-IV version of the petrol Logan will now come at Rs 4.89 lakh and the diesel variant at Rs 5.80 lakh (ex-showroom Delhi).
Atlast sense prevailed in Logan pricing. An ex-showroom price comparision chart between Dezire Vs Manza Vs Logan will be interesting. Anyone?
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Old 23rd April 2010, 15:32   #6
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Good move from M&M. hope it yields in number.

Time to wait for the May month sales chart.
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Old 23rd April 2010, 16:18   #7
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Quote:
Originally Posted by mjothi View Post
Time to wait for the May month sales chart.
Nothing will happen till they:
  1. Advertise
  2. Advertise hard
  3. Give maintenance packs like GM
  4. follow 1&2 again. I haven't seen any Logan ads post July 2007. Out of sight = Out of Mind. Meru's have spoilt the image to a greater extent.
  5. Give goodies like club memberships etc etc to lure customers.
  6. Organize roadshows
  7. SX4s, Sparks etc etc are given as prizes, why not Logan.
  8. Build the brand.
  9. It is now Value for money sedan not a wide body sedan.
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Old 23rd April 2010, 19:59   #8
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Quote:
Originally Posted by amtak View Post
Nothing will happen till they:
  1. Advertise
  2. Advertise hard
  3. Give maintenance packs like GM
  4. follow 1&2 again. I haven't seen any Logan ads post July 2007. Out of sight = Out of Mind. Meru's have spoilt the image to a greater extent.
  5. Give goodies like club memberships etc etc to lure customers.
  6. Organize roadshows
  7. SX4s, Sparks etc etc are given as prizes, why not Logan.
  8. Build the brand.
  9. It is now Value for money sedan not a wide body sedan.
I think they are looking at repositioning, redesigning and relaunching the Logan, hence the lack of advertising expenditure. Maybe they want the brand to be 'out of sight, hence out of the consumer mind' for a while, and then start off with a clean slate and a snazzed up new campaign.

Perhaps, they don't want people going ' Woh taxi kee ad aa rahee hai!' every time they see the commercial. I work in advertising, so I should know.
Looking forward to the new Mahindra Logan.
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Old 23rd April 2010, 22:15   #9
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With the current looks I don't think Logan's sales figures will be anything better then what current is. Why not M&M building their own sedan/hatch, may be based on Logan's platform.
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Old 24th April 2010, 08:55   #10
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Very tough job for M&M.

IIRC the only faintly similar incident to this is the Dawoo Matiz to Chevy Spark.

A good car let down by a bad company. GM took it up, re-branded the car, spruced it up, brought the interest back in the car but then blundered with the pricing. Anyways, with a correction later it has crossed tht 1L mark in sales.
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Old 24th April 2010, 19:38   #11
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Quote:
Originally Posted by HammerHead View Post
With the current looks I don't think Logan's sales figures will be anything better then what current is. Why not M&M building their own sedan/hatch, may be based on Logan's platform.
Mahindras don't have the expertise in building passenger cars. When I say expertise, it doesn't only mean technical skills, they very well might have them in abundance. What they don't have is how to play the number game. They were a dominant player in the MUV market till the Tatas brought out their Safaris and later the Sumos. So Mahindras answered by launching the Armadas, Boleros and then the Scorpio. So far the competition in this field has been limited to just a handful of players and vehicles. And this has so far been a sort of niche segment.

In the sedan market, there is immense competition within the sedan segment and also from the hatchbacks and premium sedans. Even the Eeco from Maruti will be competing for a utilitarian 5-seater vehicle (just a cut above the Omni). So you need a very very strong brand presence, smart pricing and aggressive marketing. None of which Mahindras have as far as the sedan market is concerned.

Logan, based on its features and performance, has been a good sedan. Where it has lost the battle to others is on the VFM (or in other words the pricing) front. When Mahindras can take this sedan and use it to increase their market share, why spend crores on researching and developing a design from scratch? Even Tatas, who have had a good hold over the hatchback market, had to spend a few years to get the Nano into production, without any guarantees of its being successful. Why should M&M take that risk when they have a better option?
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Old 25th April 2010, 17:39   #12
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i dont know about you guys, but i am a pessimist as afar as the logans chances are concerned.

Its 'price' proposition is surelly offset by the launches of several hatches in the 4000 mm category. And price apart, the dated looks, utilatarian image and poor trim had initially been the sore factors about the logan - none of those issues have been addressed. The fact that it is now the favorite pick of several taxi operators, does it no good in the mind of a private buyer.

In summary, i find very slim a proposition or a market for this car. The Siena relaunch was never a success either. so why should this one be?
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Old 25th April 2010, 19:51   #13
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If anything, for me it demonstrates Mahindra's intentions for the Logan. Its hardly been 10 days since they took over MRPL, and they have fired the first salvo. I guess they already had their plans chalked out for the Logan before they signed that deal.

However, price cuts are not something new with the Logan. And those cuts have not
done much to salvage sales.

So a refreshed and a renamed version must be round the corner.
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Old 25th April 2010, 19:55   #14
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i think Logan will be a good alternative of indica as a Taxi!
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Old 26th April 2010, 15:50   #15
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Quote:
Originally Posted by honeybee View Post
When Mahindras can take this sedan and use it to increase their market share, why spend crores on researching and developing a design from scratch? Even Tatas, who have had a good hold over the hatchback market, had to spend a few years to get the Nano into production, without any guarantees of its being successful. Why should M&M take that risk when they have a better option?
You really think M&M can make Logan rock the sales charts just by reducing the price? I personally don't think so. There were already price cuts/discounts running on Logan which did not help it to sell well.

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i think Logan will be a good alternative of indica as a Taxi!
I think Maruti Eeco will be a better alternative to Indica as a taxi.
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