New Delhi: Mahindra & Mahindra (M&M) has introduced a significant discount of up to ₹1.5 lakh on its popular three-door Thar SUV model, just weeks after the launch of its larger sibling, the five-door Thar Roxx.
The move is meant to maintain the sales momentum for the Thar, particularly as potential buyers may be swayed by its overlapping price points with the Thar Roxx, two people aware of the development said.
The new consumer scheme, effective from 1 September 2024, offers varying discounts across the Thar lineup, with the highest reduction being ₹1.5 lakh on several variants.
For instance, the Thar four-wheel drive LXD automatic transmission now comes at an ex-showroom price of ₹15.49 lakh, down from the original ₹16.99 lakh. Similarly, the Thar 2WD LXD manual transmission is now priced at ₹11.35 lakh, reduced from ₹12.85 lakh.
“As part of our festive season ramp-up, we introduce targeted interventions on specific parts of portfolio, based on market feedback and customer preferences,” said Nalinikanth Gollagunta, CEO, automotive division, M&M. “We have initiated the same this year and look forward to a very strong festive season for the Mahindra portfolio.”
Bookings for the new Thar Roxx, which starts at an ex-showroom price of ₹12.99 lakh, will commence on 3 October. M&M has allocated a production capacity of 10,000 units for the Thar model line, consisting of both the Roxx and the three-door Thar.
“With the Thar Roxx launch, Thar 3-door needs price repositioning as heavy cannibalization is likely unless Mahindra reduces the price of the 3-door Thar by at least ₹2 lakh,” said Gaurav Vangaal, associate director at S&P Global Mobility. “It looks difficult that both the Thar and Thar Roxx could maintain their sales volumes without price repositioning as distinct, individual products in the long term.”
The move follows a price reduction strategy employed for its flagship SUV, the XUV700. In July, Mahindra slashed the prices of its top-end XUV700 variants by up to ₹2.2 lakh.
The idea is to make an aggressive push to capture and grow market share in the competitive SUV segment, which in a broader passenger vehicle market slowdown is seeing some loss of steam.
M&M has gained 134 basis points in market share in FY25 year-to-date, compared to the same period last fiscal.
The discounts on the Thar three-door are expected to appeal to buyers who have halted their decision to purchase the model in anticipation of a price cut, by providing a more attractive entry point into the Thar lineup.
The offer is likely to be a precursor to a more comprehensive price point revision after the festive season.
To be sure, after taking a ₹1.2 lakh price reduction on the Nexon EV, Tata Motors had introduced significant discounts on the model after it launched its Curvv EV coupe, addressing a similar concern of price points of the two models being too close together, dissuading buyers from buying a vehicle launched earlier at only a marginally lower price point.
