Mahindra Thar 4×4: In a surprise development that has rocked the country’s automotive universe, Mahindra & Mahindra has announced a massive three lakh Rupee price cut on certain variants of the cult SUV – the Thar 4×4.
The extreme price reduction is seen as the automaker’s desperate attempt to change the game in a fast growing off-road SUV segment.
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Mahindra Thar 4×4 Novelative Discount Plan
And now that COVID has relaxed its grip, there are reports of Mahindra dealers advertising the generous discount on current stock of select Thar 4×4 derivatives in the metros.
So why the sudden shootout of such aggressive pricing? According to industry insiders, we can expect its part of a tactical approach that includes the old inventory clearance in advance of 2021 regulatory adjustments as well as a much-needed market position shift in a class that just keeps getting fuller.
“We have never seen the magnitude of discounts on the Thar to this extent since its relaunch in 2020,” says Vikram Sharma, a seasoned (15 years) auto industry analyst.
This shifts the Thar entirely to a segment where was comparable to premium hatchbacks and entry level sedans, potentially bringing in a new customer overlap altogether.”
The offer is available on select higher-spec Premium and Limited 4×4 models with MT transmission, with prices for qualifying models now starting from around ₹12.49 lakh (ex-showroom)—a fantastic offer for a vehicle of this calibre.
Inventory Clearance or Strategic Pivot?
Mahindra Thar 4×4 Analysts are at odds when it comes to speculating behind Mahindra’s move to cut the price of the XUV500 by such a large margin. Some speculate it’s a tactical stock-o clear out before freshened versions muscle their way in, others reckon it’s a conscious bid for market share in the meantime at the bottom of the class with fresh rivals breathing down the Creta’s neck.
(Dealership side of the story is, they’ve been discounting the heck out of them because they know new versions are right around the corner.
“These are authorised factory discounts, not the kind of normal dealer-level incentives,” whispers a Mahindra showroom manager at a leading Delhi dealership. “This points to corporate-level coordination and not just individual instances of trying to move old inventory.”
The timing is right as the financials of Mahindra have been spectacular in the recent quarters– so there is a financial case to handle short term margin compression if it drives market share.
Market Position and Competitive Landscape 1.3.1.
The Thar is one of a kind in the Indian market, with it’s not so subtle lines and a proper off-roader badge on the hood. Post its full remodel in 2020, the vehicle has surpassed its practical origins and developed into a lifestyle statement for the urban consumer who wants weekend adventure ready performance.
This price revision places the Thar in the footsteps of rivals including the Force Gurkha and the coming Maruti Suzuki Jimny, and comes across as a viable alternative to the regular, non-off-road-spec compact SUVs.
“The Thar offers tremendous value at this price bracket if considered purely on mechanical specification & capability,” says Priya Kapur, editor of a reputed auto publication.
“Solid axles, mechanical four-wheel-drive systems with low-range transfer cases and factory locking differentials from the manufacturer at nowhere near this price are practically unheard of in a new vehicle.”
Configuration and Variant Information
While based on the much cheaper Thar, they share the car’s signature mechanical layout which comprises:
130bhp of power and 300Nm of torque; mHawk 2.2-litre diesel engine
M6 six speed manual transmission
Selectable 4WD with low range
41-degree approach angle and Fording Depth of 650mm
Mechanical locking differential (factory-installed)
18-inch wheels wrapped in all-terrain tires
The price cut is for the models fitted with minimum necessary comfort equipments such as touchscreen infotainment, cruise control, roof-mounted speakers and the likes and they’re all daily drive-able in a way its commercial vehicle predecessor.
Consumer Response and Market Effect
Dealerships have seen incredible interest since the release, with a quadrupling of showroom visits and a five-times jump in online enquiries on digital platforms.
Long wait times, which had become more normalized in recent months, are creeping back up at some sites.
“Last week alone we have gotten more serious enquiries than the whole of last month,” says a sales manager of a Bangalore dealership. “What is interesting is that a lot of the potential customers are moving up from premium hatches and compact sedans rather than other SUVs, indicating that the Thar is on its own in terms of creating a market or a segment of its kind.
This consumer enthusiasm has encouraged rival manufacturers to address their pricing plans, triggering projections from industry analysts of similar cuts by other rivals in the compact SUV category.
Ownership Economics Redefined
Besides the initial acquisition cost savings, the Thar still offers the same basic mechanical simplicity that leads to lower running and maintenance costs relative to the more sophisticated modern SUVs.
Its drivetrain has been around for a while, so is well proven, and the fact that it’s a Mahindra makes for a competitive lifetime cost of ownership tough to beat in its niche.
“In India, ownership of the Thar is a new proposition that challenges the conventional ownership of the everyday crossover,” says automotive economist Rajesh Menon. “It has a good balance and its relative simplicity can mean lower repair costs in the long run for some off-road stresses,” he said.
Limited-Time Opportunity
Some detail has been provided by Mahindra officials on price, to wit that the scheme whereby these vehicles of standard equipment would be priced lower than Group A pack-equipped cars was temporary by nature and termed a “celebratory offer”, the length of celebration unspecified. The restricted availability of the Thar has led to a rush among those who had so far thought it was out of their reach.
The available inventory at current discounted rates is projected to be wiped out within 6-8 weeks of the rush based on the historical pace of final sales and the current upsurge of interest.
Mahindra Thar 4×4 Conclusion
Mahindra Thar 4×4 This dramatic reduction in price is either a tactical clearing of Mahindra’s stockpile of Thar 4xes or a strategic effort to penetrate the new-car market, or more likely, a bit of both.
Whatever the reason, the end product offers outstanding value for those looking for true off-road performance with everyday utility.
For buyers who have been yearning for the Thar’s unique persona but haven’t taken the plunge primarily due to the pricing, this is a once-in-a-lifetime occasion to own one of the country’s most off-road capable production vehicles at an acquisition cost that has, until now, been unheard of for vehicles that can tackle what very few owners would dare throw at it.
With the Indian Automobile industry moving towards electrification and increased urbanization, this may be a rare alignment of value and capability that may not come around in subsequent product cycles.
