creativebala

Is Tata and Mahindra a DAYROBBER

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Friends I have a doubt, carify if you can

 

Chevy Captiva, Mitsu Pajero, Toyo Fortuner, Endy all retails below 20L   Since all these attracts 100+% as CBU, if these were made in India, should retail below 12 L. Rs 9-12L is where our Tata Safari and Mahi Scorpio retails.

Are these products comparable.

Comfort , performance, looks, handling(esp brakes), safety, reliability and so on are the places where our SUVs are inferior but priced on par.

 

So Is Tata and Mahindra a DAYROBBER

 

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Even if Captiva, Pajero, Fortuner, Endy, etc. were to be manufactured in India, I believe their prices would still have been steep. The 10-12L space is occupied by sedans made in India. So, SUV's/softroaders would command a higher price price tag, atleast a 4-5L jump is obvious.

 

Tata & Mahindra have no competition whatsoever & future seems rosy too, with no manufacturer making efforts to join that segment. Therefore, they are free to price according to will. Also, these homegrown SUV's weigh almost same/more than their International counterparts & provide almost similar equipment levels. In this case we can safely say that the big(International) manufacturers are making all the profits.

Otherwise too, I don't think Tata/M&M can sell their SUV's at lower prices. I mean look at the Safari, it can't sell for 6.5L. One gets small hatches only for that price! BTW, its older version is still available around this price or 50K more!

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I think if they give up their "market driven" pricing and price it sensibly, they will become "volume sellers" thin margins, so also they end up with more or less same profit and a huge market.

 

Say who can deny a TATA SAFARI & Scorpio@ 5-6L, it may outsell even an alto considering Indians need of Huge(5+ seater), High(GC),Butch looks,..etc. They can even be world's leader in SUVs.

 

I think this makes lots of sense. Who will buy a good Hatch if he gets a somewhat good SUV at the same price tag.
creativebala2009-09-03 05:50:41

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Chevy Captiva - CBU (Attracts 110% CD/SAD/CVD)

Honda CRV - CBU (Attracts 110% CD/SAD/CVD)

Mitsubishi Pajero - CKD

Mitsubishi Outlander - CKD

Toyota Fortuner - CKD

Ford Endy - CKD

So I would say, it's the Mitsubishi comes up with a daylight robbery. As far as TATA's and Mahindra's are concerned, they're in a cocoon right now. They should thank god that they're in India and not China (Forget about USA/EU). Like in US, Zero Customs Duty would wipe them off completely and even 50% CD on the imported vehicles is enough to get them scared to hell.

Chevy Captiva is the best priced SUV considering that it's 100% CBU. Hats off to GM.

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Chevy Captiva is the best priced SUV considering that it's 100% CBU. Hats off to GM.

But don't we have an FTA with South Korea, so I doubt whether it attracts 100+ % as excise.

 

And also I think Mitsubushi deserves the price it asks for its ability
creativebala2009-09-03 08:32:56

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As far as TATA's and Mahindra's are concerned' date=' they're in a cocoon right now. They should thank god that they're in India and not China (Forget about USA/EU). Like in US, Zero Customs Duty would wipe them off completely and even 50% CD on the imported vehicles is enough to get them scared to hell.
Chevy Captiva is the best priced SUV considering that it's 100% CBU. Hats off to GM.[/quote']

 

Well not in a complete cocoon, Tata/MM are battling the mighty Innova in their segment. Tata/MM have presence in many Countries & their popularity is increasing. Every market has diff. dynamics which dictate pricing policy. Similar products maybe priced seperately in diff. markets.

 

As for Captiva, GM could not price it in excess of  what it retails now. Afterall, GM can't overshoot Honda & Toyota has undercut them which could translate in a huge  loss of nos. for GM. BTW, I do anticipate a further cut in Captiva's price once Fortuner's deliveries settle.

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well, these guys have put in their money to produce cars for that section of market, which is not yet fully developed and has the monthly sales figures way down the sedans and hatchs. Hence they can charge some premium from the customers for it.

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well' date=' these guys have put in their money to produce cars for that section of market, which is not yet fully developed and has the monthly sales figures way down the sedans and hatchs. Hence they can charge some premium from the customers for it. [/quote']

 

this could be said for the initial few years to recover cost or break- even.

But the case here is Safari, a 10+ yrs old model and Scorpio, may be 6-7 yrs old.    so no point in keeping a premium because they made one.

 

And low sales is because of its high price. As I said early, around Rs 5-6 L, these monsters may even outsell Alto in sales.

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Say who can deny a TATA SAFARI & Scorpio@ 5-6L' date=' it may outsell even an alto...

 
[/quote']

Hi Bala, I agree with you on this point...and I also feel this would happen once the Indicruz crossover will be ready for launch. Though not 5 Lakhs, if TATA can price the Safari at around 7.5 Lakhs on-road, they can make good sales numbers.

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And low sales is because of its high price. As I said early' date=' around Rs 5-6 L, these monsters may even outsell Alto in sales.
[/quote']

i don't agree with it, low sale because of the usage. these monsters are not meant for the daily city driving or commuting to offices. these are big machines and hence require much higher care and maintenance.

Even if you put a price tag of 5 lac to a safari, it would never outsell your Alto, or Swift as the product usage is way different.

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i don't agree with it' date=' low sale because of the usage. these monsters are not meant for the daily city driving or commuting to offices. these are big machines and hence require much higher care and maintenance.

Even if you put a price tag of 5 lac to a safari, it would never outsell your Alto, or Swift as the product usage is way different.
[/quote']

I agree with you Endless partly and

I think footprints of Swift and Scopio doesn't differ significantly.

so can we start a poll "Same price- which one for you- a premium hatch or premium SUV".

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@Endless, right everyone doesn't aspire to own a Scorpio/Safari.

Safari has its own share of problems, ex-showroom price is the least of them!

 

I wish Tata/MM provide improved/superior products at same price. Both Scorpio/Safari need extensive work to be done on them in order to pass off as contemporary.

 

@Bala, how can a budget hatch & a MUV/SUV have similar price. The cost involved in manufacturing of a UV/SUV is higher than that of a hatch.
speed2009-09-03 10:14:48

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