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Tuesday, January 19, 2016

Mahindra KUV100 launched at Rs 8 lakh downwards!

Mahindra and Mahindra (M&M) has launched its small car with SUV looks, branded KUV1OO (to be read as KUV One Oh Oh) at a price tag costing up to 8 lakhs (on road price in Shillong, probably one of the most expensive places in India to buy a car due to relatively higher taxes) and downwards. KUV100 is a small car with fake SUV styling and looks to corner customer base of young and dynamic buyers who want the looks of an SUV but the price of a small car (or rather who can't afford a real 10 lakh+ SUV)

KUV1OO variants and prices:
Diesel
K8: 7.91 lakhs
K6 Plus: 7.85 lakhs
K6: 7.54 lakhs
K2: 6.15 lakhs

Petrol:
K8: 7 lakhs
K6: 6.4 lakhs
K4: 5.7 lakhs
K2: 5.3 lakhs
All prices on road, Shillong (not Ex Showroom Delhi or Pune in this case)

Now you are probably thinking what is wrong with this guy. Every other website and automobile blog worth its name has already published stories stating that KUV100 has been launched at Rs 4.42 lakhs. So why am I quoting 8 lakhs?

This is because I have a fundamental problem with the way cars are advertised in India. The photo of top spec variant is used but the price of cheapest variant in cheapest of the cities is quoted.  If you are using picture of top end variant, mention price also for same variant. And on top of it only ex-showroom price is quoted to give an impression that the car is very cheap. In reality you need to cough up 20-25% more on top of ex-showroom price to be able to take home a car. If you notice, the on road price of top end variant is almost two times the ex-showroom price of cheapest variant advertised during launch.

This is why I drafted the headline differently, to set true picture. If only all car ads are honest about realistic numbers- in terms of purchase, maintenance, fuel economy etc, then lots of people won’t have to waste their time visiting showrooms. Car makers should also be mandated to publish average amount spent by a customer every year on maintenance and repair for each model- this will help new buyers decide if they really want to buy a car. Today buying a car is very easy due to loans. After purchase I have seen many friends fret over the actual cash outgo they have to incur on the car. If all real numbers are revealed.  there will be less cars on the road and less pollution.

Also in my personal opinion KUV design seem to be inspired by Range Rover Evoque. Of course RR is 10 times more expensive.


Though I have used example of Mahindra, all car makers are using same tactics. Your comments welcome.

Similar: Buying a car vs renting it * FAQ for first time car buyers *

10 comments :

Arun Prasadh said...

Very true about the price and pics that are shown in ads.

makequickbucks said...

Ha ha. I don't understand the concept of ex showroom price. I'd anyone paying to leave the car in the showroom.

Prasad Np said...

You have a great future in consumer rights, but no hope for you in advertising :)

But all your points are 100 % correct

Alok singhal said...

You are bang right, quote the price of the model shown in the advertisement!

Shrinidhi Hande said...

@Alok- Thanks

@Prasad: Thanks for bringing out the bitter truth...

@Arun- Thanks

@MQB- ex showroom is pure cost of the car, without tax, insurance and other expenses. but yes, they won't give you the car at ex-showroom if you say I will take care of registration, insurance etc ..

Mridula said...

Someone has this car in my area and I thought it looked like Range Rover. I hardly ever buy cars so thanks for pointing out the price trick, never noticed it on my own!

Swati & Sam said...

Nice article ... though I don't have much knowledge about cars and pricing but when we bought our car .. Sam told me a price then by the time it was delivered there were so many additional costs added - road tax, insurance , interiors ... phewww :(

http://thetalesofatraveler.com/2016/01/18/10-photos-that-will-inspire-you-to-visit-ladakh-in-winter/

Shrinidhi Hande said...

@Swati- yes, there is no such thing like MRP in cars- it is a complex world... People go to showroom keeping a small budget in mind and end up paying much more than what they thought.

@Mridula- may be you should upgrade to some modern car now...

karthikeya upadhya said...

ex showroom price is only to attract the customer. once you show interest to buy a vehicle then they will start add one by one costs (excluding reg expenses and taxes). Its better if they shows entire and exact price list for the product, customers can plan accordingly.

Shrinidhi Hande said...

@Karthikeya- exactly my point- like we have MRP for the products- show final amount.