Business Daily from THE HINDU group of publications Tuesday, Feb 19, 2008 ePaper | Mobile/PDA Version |
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Cars Marketing - Trends
The push in Logan sales is mainly due to the discounted prices, which helped fill the gap that was created by the exit of an entry-level C segment model. Sales expected to rise further as Logan is likely to be offered at the price point of B-segment cars like Swift and Getz. Priyanka Vyas
New Delhi, Feb. 18 Maruti Suzuki applying brakes on the production of its entry level sedan, Esteem, seems to have helped expand the sales pie of Mahindra-Renault’s Logan. Mahindra-Renault, which lowered the price of Logan last month, said that its petrol variant saw a spurt in sales and from this month, the company began production of the car in two shifts. “We started the second shift for manufacturing Logan from February. With this, our production capacity would increase monthly to above 2,500,” said Mr Nalin Mehta, Vice-President, Sales & Marketing, Mahindra-Renault. Till last month, the company was producing around 2,000 units and the ramping up is in anticipation of higher sales, he said. Mr Mehta attributed the push in Logan sales mainly due to the discounted prices, which helped fill the gap that was created by the exit of an entry-level C segment model. “Earlier, Logan’s petrol version constituted 30 per cent of the overall sales and the remaining came from the diesel variant. But in just a month, sales of Logan’s petrol variant have seen a surge to 40-42 per cent,” he said. Mahindra-Renault, in fact, expects an even higher demand as it seeks to offer its sedan at the price point of B-segment cars like Swift and Getz. Logan sales dropped to 1,504 units in December last year from 1,560 units in November, according to SIAM. But the car’s sales in January rose to 2,301 units. Mr Mehta also said that the company was expanding the distribution network for Logan from 89 to 120 dealers in the next three months. “Currently Logan’s petrol variant is offered at Rs 4,25,000, compared to Rs 4,80,000 earlier. The competitive pricing enables it to target B-segment cars that are Rs 4 lakh plus, especially with Esteem being phased out. We have seen an increase in sales from 125 to almost 300 in Delhi-NCR,” said Mr Arun Duneja, Head of Sales at Bhasin Motors, a Delhi-based Mahindra-Renault dealer. More Stories on : Cars | Trends | Mahindra & Mahindra Ltd | Maruti Udyog Ltd
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