Mumbai: India’s top utility vehicle and tractor maker Mahindra & Mahindra on Thursday slashed prices of its Logan car by 5-12% to boost sales of the no-frills sedan.
Last Friday, Mahindra bought out its French partner Renault’s 49% stake in the joint venture that makes and sells Logan in India.
The price cut, by Rs24,000-80,000 ($539-$1,798), was to provide better value for its customers, Mahindra said.
“There was a lot of uncertainty about the future of the Logan in the minds of our dealers and customers,” said chief operating officer Rajesh Jejurikar.
“We wanted to give a fresh momentum to the Logan through a reduction in prices,” he said.
Sales of the Logan, which met with an enthusiastic response during its 2007 launch, have dwindled as it attracted a factory gate duty of 22% due to its 4 metres-plus length.
“The rationalisation of the prices will provide a better value proposition for our target segment who had found the car too expensive,” Jejurikar said.
The price cuts make the Logan the cheapest car in its segment, about Rs35,000 lower than Maruti Suzuki’s diesel sedan Swift DZire.
“We have an 18-month period to refresh the product and we are working on various alternatives,” Jejurikar said.