If you have had your eyes on the Mahindra Marazzo, it was recommended you booked it before 31st December, as prices were set to increase from New Year, and as is the norm, price points have yet again been revised as the new FY commenced. However that has not affected Marazzo in the least bit, and Mahindra Marazzo production and sales numbers continue to grow.
If now was waiting to see if rise in prices will affect Marazzo’s sales, well vehicle sales have spoken. Just last week, it was confirmed that more than 20,000 customers now drive a Mahindra Marazzo. Now there’s more to cheer about. Mahindra Marazzo production at the Nashik plant has reached the 25k landmark. The 10k Mahindra Marazzo production mark was reached in mid-November, 2018.
Having launched the vehicle on 3rd September 2018, Marazzo was the company’s first big launch for the last FY with a 4-star safety rating. Mahindra also launched its Alturas SUV and XUV300 SUV during the last fiscal. Last month Marazzo sales were reported at 2,751 units. For the fiscal (September to March), the company sold 24,130 units. Last November, price increase by Rs. 30,000 – Rs. 40,000 was announced for Mahindra Marazzo wef January 1, 2019.
This was a good 4 months since launch when the vehicle was launched at an introductory price of Rs 9.99 lakh onward. Wef April 1, 2019, Mahindra effected a price hike of 0.5 – 2.7 percent across its passenger and commercial vehicle range at Rs 5,000 – Rs 73,000, across its models.
Increased prices will widen the acquisition cost gap that exists between Marazzo and its lower priced rivals such as Maruti Ertiga and Renault Lodgy. At Marazzo’s introductory prices, consumers looking at Ertiga or Lodgy may have thought about upgrading to Marazzo. However, with increased prices of Marazzo, consumers may have second thoughts about the upgrade option. However, this has panned well for Mahindra until now, and Marazzo continues to chart its own success path.
Marazzo price hike, however, will have little impact on its equations with higher priced rivals such as Tata Hexa and Toyota Innova Crysta. Customers who are looking at Hexa or Crysta do not have any solid reasons to switch to Marazzo. Mahindra would certainly not want to take unwanted risks at a time when things are going good for Marazzo. It is certain that Mahindra would have considered its options before thinking about increasing Marazzo’s price as sales volumes foretell.