Logan Effect: Mid-size car market sees price shake upNew models, interest rates and prices cause shake in lower midsize sedan market
Apnaloan.com Research Bureau
10 Aug 2007
New Delhi/Mumbai: New models, steeper interest rates and volume pressure is causing a shake-up in the lower mid-size sedan market. Less than a fortnight after the launch of the aggressively priced Mahindra Renault Logan, a clutch of its biggest competitors are revamping their marketing strategies. That includes offering discounts and free accessories as well as rationalising the product line-up.
According to sources in the industry, Hyundai is currently displaying only its base GLE variant of the Accent but there are no discounts on that model. When contacted, Hyundai Motor India executive director (marketing and sales) WS Min said: "We are only displaying the Accent GLE model. We have no plans to add any more versions right now."
The 1.5 litre Hyundai Accent GLE base model, at Rs 5.32 lakh, is price positioned higher than the Logan. The rest of the Accent's line up included the 1.6 litre GLS (Rs 6 lakh and Rs 5.82 lakh without ABS), the diesel CRDi version (Rs 6.86 lakh), the Viva (Rs 6.23 lakh and Rs 6 lakh with ABS) and the Viva CRDi (Rs 6.66 lakh). Sources say these are no longer being retailed.
As for Maruti, ET spoke to a cross-section of dealers in both Delhi and Mumbai to find out the level of discounts on the Esteem. Currently, all models of the Esteem are attracting a discount of around Rs 30,000. Rival Ford India's Ikon is offering an MP3 players as an added accessory with the base model of the Ikon in some markets.
The Logan's price positioning the petrol version, in 1.4 and 1.6 litre variants, starts at Rs 4.35 lakh and goes up to Rs 5.76 lakh ex-showroom Delhi while 1.5 litre diesel version starts at Rs 5.54 lakh and goes up to Rs 6.51 lakh pitches it head-to-head with the Esteem and Ikon. It's just a shade lower than the Accent base model.
The Esteem (available only in two 1.3 litre petrol versions) costs Rs 4.48 and 5.14 lakh and is just a tad more expensive than the Logan. With a Rs 30,000 discount, it will be aggressively priced vis-a-vis the Logan. The Ikon, also kitted with a 1.3 litre gasoline engine, starts from Rs 4.76 lakh and is pricier than the Logan at the base. The petrol Indigo from Tata Motors starts at Rs 3.99 lakh while its diesel version kicks off at Rs 4.4 lakh, both substantially lower priced vis-a-vis the Logan.
(Courtesy: Economic Times)
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