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Originally Posted by Moto_Bear Assuming here that the Poll states Ex-showroom cost and not OTR price, the top-spec XUV7OO would then cost 25 lakhs Ex-showroom. Going by the OTR charges in my state, you would see the XUV7OO top-end variant going for somewhere close to 29 lakhs here. Currently, the base Fortuner(Petrol) goes for around 30.36 lakhs ex-showroom, which has the current OTR of 34 lakhs here.
Therein lies the issue, in my opinion. |
You have completely missed the point here. You are comparing the Petrol MT 4x2 Fortuner with the Diesel AT AWD XUV700 here. Where is the sense in that?
99% of Fortuner sales between January and March 2021 came from the Diesel variants. It is quite pointless to quote the price for the Petrol variant in isolation too.
If you look at the Diesel base price (mind you, which is also 4x2 and manual) is 33L which is about an 8L rupee difference in ex-showroom itself.
Now, if you think about it, a person who has decided to buy an automatic vehicle won't even consider a manual. The Fortuner Diesel 4x2 AT costs 35 lakh rupees ex-showroom which makes it a difference of about 10 lakh rupees.
Then comes the AWD, AWDs will only be bought by people who really want something that can handle some of the rough stuff, they would be opting for the 4x4 in the Fortuner if they were to buy it which comes at a price of about 38 lakh rupees ex-showroom, which is a difference of about 13 lakh rupees.
The 25 lakh price is indicated for the top end Diesel AT variant with all bells and whistles which Fortuner doesn't offer, possibly with ADAS along with AWD. These would only be opted by the people who really want a fully-loaded vehicle.
There would be lower variants too skipping on extra features, AWD and AT etc bringing the price down for those who don't need them.
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1. Higher Segment:
With a price difference of just 4-6 lakhs OTR, a car of a higher segment, that is Fortuner would always have leverage. Fortuners, in India, are not only cars. They're status symbols. They reflect your success, hence, their sales numbers affirm it despite the Toyota policy of raising the price every once in a while. Fortuner is an aspirational vehicle for a lot of people and hence garners such respect compared to XUV. Having both of them in my home, I've seen the difference in people's behaviour when I drive the former compared to the latter.
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Reiterating my point again, it is not just a 4-6 lakh OTR difference. If you at the very least want a Diesel Automatic only then too it's a difference of 11-12 lakh rupees OTR, which would widen further when you drop AWD from the XUV. Fortuner definitely belongs to a higher segment but also aks the price for it.
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2. The times have changed but the segments haven't:
XUV5OO came into the market at 11-13 lakhs OTR and back then when the RTO charges were minimal, we got our W8, 4wd for around 13.50 lakhs. It has all-disc brakes, ABS, ESP and 6 airbags. Yes, 6 airbags back in 2011.
Concluding here, what I mean is that back then for the XUV to work, it had features, safety and was a complete package on top of such a price. It(top-end variant) was half the price of a Fortuner(top-end variant). For XUV7OO to succeed, it would need to do the same. Pricing it near the Big boys might not be fruitful for Mahindra
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When XUV500 was first launched it was an entirely new product and had no brand leverage. Now the brand XUV has become big too. It has its own fan following and a good customer base.
You yourself say back in 2011 you bought the XUV 500 AWD for 13.5L and the Fortuner top-end cost 24L i.e XUV was about 56% of the price of the Fortuner OTR.
Now if Mahindra prices the top end AT AWD at 25L ex-showroom, it comes to about 28L OTR in Srinagar and a Fortuner top end costs about 44 lakh i.e about 64% of the price of the Fortuner. 56% in today's times would be about 25L OTR. I seriously think that the brand they have built over the years and the refinement they have achieved in their products in the recent past can command a premium of 2-3 lakhs in today's times.
Finally, they are keeping the formula the same. Blasting the vehicle with features no one has heard of this side of 30L.
I agree that they can be a bit conservative with the initial pricing by keeping it around 23.5 to 24.5L and not touching the 25L mark but if they do so too then also it won't be such a disaster as you point it to be.
Regarding the segments, I agree the segments stay the same but the prices they operate in do change, the Safari top-end Diesel AT costs 22L ex-showroom itself, the Alcazar Diesel AT with a lame 1.5 Diesel costs 20L ex-showroom and the Hector Plus even without a Diesel AT as an option costs 20L ex-showroom for the top end MT. Add the AWD, potent diesel mill, good AT gearbox, a bucket list of features (flush door handles, possible ADAS etc) and you can very easily arrive at a price tag of 24L if not 25L.
People seem to be forgetting that the top end variant with AWD etc is being talked about, variants specced similarly to the competition would be priced similarly too IMHO. Its not like they are bringing in one variant only with a 25L price tag.
Or should Mahindra drop some features, put the 1.5 mill from the Marrazzo, get rid of AWD and AT and bring the so called "top-end" at 18L ex-showroom just to keep prices in check so as not to cross competition and price it at 50% of the Fortuner's price.