[Lalvaz]

I think that this has actually been a very smart move by Suzuki. First they overpriced the S Cross, and now by offering to correct prices, they've kind of created the impression that its very good value for money at current price levels. So, no one even questions whether the current price is VFM or not, its just assumed that since its a huge cut from the original levels its VFM.

This price cut had to happen since the S Cross was not selling in the desired quantity and they had to make the new Nexa platform a success. Having only 2 products is already a limitation, and if one of them is a dud, then there's no way the Nexa experiment would have been viable. Suzuki had to ensure that they make the Nexa dealers happy and hence the price cut.

So, Suzuki ended up making the customers happy with the price cut and drove more business to the Nexa dealers. Killing two birds with one stone.

[arun_josie]

Good to hear about the price-cut and at the same time feeling bad for the people who respected the launch price and bought one. But again, its business and some times we maybe at the receiving end of a deal.

To revive their initial blunder, what Maruti has done here is, first they priced Baleno with a very good price which made people to throng the NEXA showrooms and make it a hit. Now through this price-cut for S-Cross, I am sure there will be people moving from Baleno to S-Cross. And also, for sure the dealers will focus more on S-Cross now. Overall, a good strategy after the earlier disaster in the pricing.

Also, those 2L-3L discounts(instead of the price-cut) wouldn't have worked on the longer run because it will confuse people about the product because of non-standard pricing and it is left to the buyer to negotiate hard for the discounts.

Now, it is up to the market to forgive Maruti or to punish them further. Historically, price-cuts haven't worked. Examples are new Ford Fiesta and first-gen Honda Jazz.

They should use this opportunity to change those boring alloys. And not sure if they cutting down on any major features along with this price-cut.

[carwatcher]

I think it is a justifiable move from Maruti as:

1) They have absolutely NO presence in UV segment while the competitors are running away with that.

2) If their first and only offering fails, it will create a negative mindset and would bring down the morale of not only the MSIL but of the NEXA dealers too.

3) Now with all their calculations proved wrong and while the competition is launching pseudo SUVs, Mini SUVs, Compact SUVs and Micro SUVs, it will take a long time for Maruti to develop and launch new products. So just by making their products more VFM they have addressed the problem to large extent as 200 Variant will compete with Mini and Compact SUVs and 320 one will take care of others. While doing this they have already bought precious time to develop and launch other UVs if they wish to.

As I mentioned many times that just like Wagon R vis-a-vis Santro, S-Cross will definitely prove to be a "Lambi Race ka Ghoda".

The 1.6 L DDiS engine surely has the capacity to become another National Engine after the 1.3 L one as market have matured.

Also the 1.6 L DDiS makes look S-Cross a more "Perfect and Complete Car" as we have a Car with Japanese reliability, VFM price, European build, European Driving Dynamics, Space, Mileage, Powerful Diesel Engine at VFM price, it couldn't be more perfect IMHO. If Maruti further surprises us by launching a proper A/T (not AMT) variant, it will throw the competition out of the window.

I am again re-iterating that this car will sell in huge numbers now and will do a "Swift" to the NEXA.

[kvsingh13]

This is really a tempting price to offer! I feel this is the point of rise for S-Cross. People in India love high ground clearance cars! Very smart and timely decision by MSIL. Awaiting to see some good modified examples of this car on the road now, especially the 1.6L engine. For the people who are not impressed with Baleno, S cross is surely going to be a consideration now.

[SoumenD]

Much needed price-cut alright. But what about the folks who already plonked in their money for the S-Cross 1.6/1.3 at initial pricing? Had this been after a year or so, would have been understandable but such a huge cut within such short time definitely demands something like what they (Suzuki) did for the 'Inazuma'.

As soon as the price cut of ~1L was done, the amount was promptly refunded to the existing customers. That would further strengthen the trust in Suzuki that INDIA as a market has & automatically translate into further sales of the product .

[McLaren Roxx]

With this price correction, Maruti has made a nice comfy space to launch the fully loaded +allgrip +esp +6 airbags +sunroof 1.6 Scross at the old 1.6 launch price. Would completely justify the 2 lakh premium.
[Too much wishful thinking?]

As for the question about the market forgiving or punishing Maruti, I honestly believe that people will soon forgive and forget.
Scross will sell in good numbers, I would say 5:1 for 1.3 : 1.6? Primarily because the Indian market has matured a lot since the times of Jazz, Kizashi or even the Fiesta - which were very competent cars launched ahead of their times, at a price which the Indian consumer was not 'ready' for, yet.

Launch the Kizashi today @ 15 lakhs showroom with the 1.6 from the Scross and see people lapping it up!

Coming back to Scross, let's hope with this price revision, Maruti does not resort to cutting corners by way of cost cutting, silently deleting features off the list.

[Viju]

Originally Posted by McLaren Roxx

With this price correction, Maruti has made a nice comfy space to launch the fully loaded +allgrip +esp +6 airbags +sunroof 1.6 Scross at the old 1.6 launch price. Would completely justify the 2 lakh premium.

Although you are right, knowing MSIL, I don't think they will do that. May be they will use that space for a more premium product in the future.

Originally Posted by McLaren Roxx

Launch the Kizashi today @ 15 lakhs showroom with the 1.6 from the Scross and see people lapping it up!

I was a fan of the Kizashi when it was launched. Unfortunately, MSIL was not at all serious about selling it in decent numbers. Even if there is space for the Kizashi today, fact is, it has been discontinued globally, including JDM. It was probably the biggest failure for Suzuki in recent times. Ironic, considering Kizashi meant 'the sign of good things to come' / 'omen'.

Originally Posted by McLaren Roxx

Coming back to Scross, let's hope with this price revision, Maruti does not resort to cutting corners by way of cost cutting, silently deleting features off the list.

You have high hopes. I wish TeamBHP could do a side-by-side comparison of the 2015 S-Cross and say, 2017 S-Cross sometime in the future. Should be fun to see the results!

[deetjohn]

I think its a very good move! Yes, not ideal but better late than never. And the fact that historically price revisions hasn't worked in our market shouldn't be a reason for any manufacturer to not do it when reasons compel them.

Most here were of the opinion that MSIL should undercut the Creta by a good margin with the S-Cross before both were launched. And MSIL has now confirmed that belief with this revised pricing. The S-Cross is a very competent car at the current pricing and it will be great if it can get to some 3500+ homes each month.

And with the price corrections, MSIL has made an old Baleno out of the S-Cross. Lot of parallels between the two cars and launches now. Maybe history will repeat itself and people will realize what a great car they ignored after a few years.

Let's see how this goes!

[volkman10]

Originally Posted by McLaren Roxx

With this price correction, Maruti has made a nice comfy space to launch the fully loaded +allgrip +esp +6 airbags +sunroof 1.6 Scross at the old 1.6 launch price. Would completely justify the 2 lakh premium.

This is absolutely right. Here is where Maruti Suzuki will slot the New Vitara S a speculated launch in 2017.
This will come in a 1.6 diesel Variant, could be with the engine in CKD/SKD form with locally assembly for containing cost. Rumors are that the 1.4 boosterjet for the petrol variant is also being thought of.

[The Rationalist]

Even though heart breaking for those who bought the S-cross earlier, this was more of a do or die situation for Maruti. Had they kept selling it with huge discounts, the whole Nexa experience would have translated into a bargaining marketplace, which they wouldn't feel comfortable with. If they didn't reduce the price, there was the risk of S-cross meeting a slow but certain death. The fewer cars you see and hear of, the lesser the chance of you going to buy it, enthusiasts being an exception. Now Maruti has the right price bandwidth to launch an Autobox and 6 airbag variant.

[speed crusader]

Originally Posted by praveenasir

S-Cross Price have been reduced effective today.
Model Ex-Showroom
S-Cross 1.3 Sigma 7,79,000
S-Cross 1.3 Delta 8,49,000
S-Cross 1.3 Zeta 9,59,000
S-Cross 1.3 Alpha 10,29,000
S-Cross 1.6 Delta 9,94,000
S-Cross 1.6 Zeta 10,94,000
S-Cross 1.6 Alpha 11,69,000

I think this is a fantastic pricing and should drive sales.

Thanks to swiftnfurious for this comparo:

Hi! Any idea if this is to boost sales or is there a new variant (AWD) lurking around the corner? I incidentally test drove the 1.6 2 days before the price cut...loved the drive and am going to be booking it this week...just wanna check if there is a new variant on the cards. Thanks!

SC

[nimit3105]

Finally, Maruti has hit the perfect price range. I feel bad for the early owners of the S Cross who opted for the 1.3 instead of the 1.6 due to the ridiculous pricing. I was lucky enough to get the 1.6 Alpha in the December discounts with a discount of around 3L.

[GTO]

Just in case anyone was wondering about the sales split of the 1.3 vs 1.6:

About 17,000 units of the Maruti Suzuki S-Cross have been sold since its launch in India, out of which 15,000 were the 1.3-litre DDiS 200 variants

Source

In other words, 12% of S-Cross sales are for the 1.6L.

[StepUP!]

While low sales numbers and sustaining NEXA dealers can't be ignored, is there more to it? Like Maruti has localized few components of 1.6ltr engine and the drive-train?
I believe 1.6ltr engine and the gearbox are fully imported units.

If it is not the case, and they are still making money at this slashed price, Maruti should be penalized for taking public for a ride.

[mxh]

Originally Posted by McLaren Roxx

As for the question about the market forgiving or punishing Maruti, I honestly believe that people will soon forgive and forget.
.

The ones who has bought this car at the full price will never forgive and never forget. It's posts like these that allow manufacturers to grossly overprice cars and get away with it. I for one, hope the S-cross is a failure since Maruti was basically playing with customers seeing if there are any takers. At the launch date, there was a bogus story that the 3 lacs price difference was due to an imported engine and no other reason. The reality was they were just trying to cheat customers and price it at an unreasonably high price point