[400notout]

Originally Posted by motorworks

The Endy costs nearly 30-35 Lakhs! So why would H5X be priced at par with the Creta at say 12-15 Lakhs and the H7X at 35 Lakhs? Because it has 2 extra seats? How can one justify double the price of H7X vs the H5X? If the H5X is indeed the Creta Rival , then the H7X may be at around 20-25 Lakhs, at best and not more.

At present the prices (ex showroom Navi Mumbai) are as follows;
Creta SX Plus AT - 14.6L
Hexa XT 4x4 - 18L
XUV W11 AWD AT - 19L
Jeep Compass 4x4 - 21.8L
Endeavour 2.2 4x2 AT - 26.3L

Whats to be noted here is that the Creta doesn't not offer 4x4 MT/AT. If the H5X does come with a 4x4 MT/AT, TATA is in no compulsion to price those variants alongside the Creta. It would be tremendous value if they did, I dont think TATA would offer a 4x4 AT close to the price of a Yaris . So they have a top end AT priced against/near the Creta then they have a manual 4x4 variant which they can price above it and a 4x4 AT to top it all. They just have to steer clear of the XUV against which the Hexa is pitted.

If this works, the H7X can be priced against the Jeep compass or above it. We can expect the Trailhawk version to be pricier than the current 4x4. With the same engine, I expect the 7 seater H7X to be priced closer or higher (discovery underpinnings saaar) to the 5 seater Compass, which depends on how the other models across its range are faring. If the Nexon AMT, Tiago/Tigor Sport, H5X and 45X increase volumes significantly, TATA might get some confidence to price their flagship (H7X) with decent if not fat profit margins in mind.

Funny thing is, TATA unveiled the H5X and the 45X hatchback, have given tentative timelines for it. But as per RavenAvi, all test mules spotted yet are of H7X! of which theres no official launch report! Theres a lot of time for TATA to play with the positioning of the H7X if it is a later (read 2020) launch. But if it is simultaneously launched with H5X then the narrative might change.

They cannot discontinue the Hexa so soon thats for sure. They cant kill their current flagship just 3 years into sale. It will get updated and keep fighting the XUV or worst case scenario, the H7X will be launched as the next-gen Hexa.

As of now all of this is speculation. I just have too much free time on my hand

P.S; I had mentioned power figures of 200Bhp in the previous post, couldnt find any report confirming that. Most reports are of a state of tune similar to the Jeep Compass (170 Bhp). The error is regretted.

Originally Posted by kaviprem

I guess, we should stop discussing the pricing and positioning of these vehicles until at least announced for its launch!
The last 1 or 2 pages contain too much of assumptions and of unknown strategy.

Ooops!

[nainan]

Originally Posted by 400notout

At present the prices (ex showroom Navi Mumbai) are as follows;
Creta SX Plus AT - 14.6L
Hexa XT 4x4 - 18L
XUV W11 AWD AT - 19L
Jeep Compass 4x4 - 21.8L
Endeavour 2.2 4x2 AT - 26.3L

If this works, the H7X can be priced against the Jeep compass or above it. We can expect the Trailhawk version to be pricier than the current 4x4. With the same engine, I expect the 7 seater H7X to be priced closer or higher (discovery underpinnings saaar) to the 5 seater Compass, which depends on how the other models across its range are faring. If the Nexon AMT, Tiago/Tigor Sport, H5X and 45X increase volumes significantly, TATA might get some confidence to price their flagship (H7X) with decent if not fat profit margins in mind.

Theres a lot of time for TATA to play with the positioning of the H7X if it is a later (read 2020) launch. But if it is simultaneously launched with H5X then the narrative might change.

They cannot discontinue the Hexa so soon thats for sure. They cant kill their current flagship just 3 years into sale. It will get updated and keep fighting the XUV or worst case scenario, the H7X will be launched as the next-gen Hexa.

Firstly the Endeavour is not selling volumes as its too close to Fortuner territory and the combination of brand/value is not making a dent. Tata with their current brand with the current value proposition I doubt will get any better. The Jeep has and enormous brand recall so can afford a more premium positioning. The Land Rover underpinnings are for the platform while the engine is a Fiat Multijet and the 4WD is Tata's own. Also given its 65% localization and Tata has 100% they can make decent margins at a lesser price point.

Also going by the latest timeline quoted by Tata (Q1 2019 for the H5X and mid year for the 5 seater) I deduce the H7X as we call it is the H5X 7 seater launching before or simultaneously with the 5 seater.

The Hexa and XUVs are crossovers in a class of their own and the H5X seems to be more true SUV so dont think other than a price point there is much overlap. I think the Hexa will continue and it makes sense given what a VFM offering it is.

[kbishwa]

H5X would surely be competing with Compass, Creta, and new Duster and may undercut likes of Tucson. However, never think H7X in the price band of Endeavour or Fortuner..albeit the value proposition would definitely meet them, hence a wise wait in 20 to 25 lakh range.

[nainan]

Originally Posted by kbishwa

H5X would surely be competing with Compass, Creta, and new Duster and may undercut likes of Tucson. However, never think H7X in the price band of Endeavour or Fortuner..albeit the value proposition would definitely meet them, hence a wise wait in 20 to 25 lakh range.

Will that work given Mahindra will bring in the Rexton in the 20 to 25 lakh range given it will be powered by a 2.2 litre 187 bhp engine, is larger and will launch at least 6 months before the H7X with 4WD low range and all creature comforts. IMHO 20-21 lakh on the top end is what will ensure decent numbers.

[shortbread]

Originally Posted by nainan

Will that work given Mahindra will bring in the Rexton in the 20 to 25 lakh range given it will be powered by a 2.2 litre 187 bhp engine, is larger and will launch at least 6 months before the H7X with 4WD low range and all creature comforts. IMHO 20-21 lakh on the top end is what will ensure decent numbers.

I don't think any of the Sangyong assembled products will make a serious dent in the market. They are like chinese cars, looks good on paper, looks nice in pictures, but never cuts it when you see one in real life.

Mahindra will price the Rexton competitively and might garner some attention at first, but the product itself is unlikely to excite customers or the market.

The previous Rexton was a good example, 2 lac + discounts were available on the car and still could not shift it of showroom floors. Mahindra then decided to drop the Sangyong portfolio altogether in the Indian market. I am not sure how renaming the upcoming Rexton as a Mahindra product will help garner sales? Unless they drastically drop prices to generate volumes, which will be doubtful as it's a Korean CKD and the rupee is not the strongest atm.