It’s time for a price war in the car market. The markdown mayhem expected to kick in with the launch of the Swift has finally set in, just a day after Maruti raised prices on its star debutante.
Hyundai Motor India hit back today with a Rs 16,000-19,000 markdown on three new variants of its bread and butter Santro Xing.
The company has introduced the XK and XL variants at a lower tag of Rs 3,26,999 and Rs 3,45,999 respectively.
The new price variants are likely to give Maruti’s existing B-segment models, Zen and WagonR a run for their money. Hyundai has also launched a new non-AC variant of the Santro at Rs 2.79 lakh, a tad higher than what the existing non-AC Santro costs.
Auto industry sources said that the next offensive is now due from Maruti. With the Santro’s new price positioning, Zen and particularly WagonR may be due for a correction, or at least a limited-period subvention. “If that happens the domino effect will kick in across the B-segment,” said a big-volume car marketer.
For now, though, Maruti has adopted a wait-and-watch approach though nobody is ruling out an offensive in the near future. Sources say, the market leader feels Hyundai’s latest initiative simply cuts out some of the existing discounts on the Santro.
“Net net the difference of prices remains unchanged because the dealer will now offer lower discounts on the Santro,” said an auto analyst. As for the increase in the price of the non-AC Santro, the volumes there are too small to matter. Hyundai’s price offensive comes on the heels of Maruti’s announcement yesterday that it would end the invitation price on the Swift from June 9.
Thereafter the car will be available at Rs 8,000-10,000 more. The new Swift prices put a safe distance between the debutante hatch and Maruti’s other B-segment models WagonR and Zen.
The Swift’s base Lxi version will move from its introductory tag of Rs 3.87 lakh to Rs 3.95 lakh. The top end Vxi and Zxi variants will go up to Rs 4.15 lakh and Rs 4.95 lakh respectively from the earlier rate of Rs 4.05 and 4.85 lakh.
The hike increases the difference between the Swift base model and the Zen and WagonR Lxi which have a sticker price of Rs 3.65 and Rs 3.7 lakh but command a Rs 10,000-12,000 discount.
With the Santro’s price aggression its gap with the Swift would increase, putting pressure on the Zen and WagonR.
Hyundai is positioning its new variants on the tech platform. Strapped with 1.1 litre engine with eRLX Active Intelligence technology, the new variants also come with new colour-coordinated interiors, a new front grill and a 4-speed AC blower that makes the air conditioning more efficient.
Commenting on the move WS Min, executive director, sales & marketing, HMI, said, “Hyundai has a tradition of providing value for money to its customers. Each year, we introduce design and technology upgradations in our cars. The launch of new Santro variants is another step in the direction of constantly offering something new to our customers at affordable prices.”
Source: ET
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