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Mahindra & Mahindra launched its compact sedan, Verito Vibe, here on Wednesday. The diesel-powered vehicle will have three versions priced from Rs 5.63 lakh to Rs 6.49 lakh (ex-showroom Mumbai).
Pawan Goenka, President of the Automotive & Farm Equipment Sectors, said he was confident that the Vibe would “create an impact in the compact car segment and find favour with the evolving Indian customer”.
The Vibe will be part of a niche group that includes the Swift DZire, Tata Indigo CS and the recently launched Honda Amaze. These are sub-four-metre sedans with compact boots which qualify for a lower 12 per cent excise duty compared with larger cars where the levy is twice as much.
Other models
The first model to enter this category was the Indigo CS soon after the Government made known its intent to incentivise small car development six years ago. However, it was the DZire which rules the roost with monthly sales inching towards the 20,000-unit mark.
The Honda Amaze has kicked off with a bang notching sales of over 6,000 units in its first month and indications are that this number will only grow in the coming months. It is really up to Honda now to sort out its capacity constraints and ensure that the waiting list for the Amaze does not become too difficult to handle.
The Vibe will have its task cut out with these two formidable rivals already doing nearly 25,000 units a month. Its larger sibling, Verito, clocks over 1,000 (each month) and it is very likely that the Vibe will eat into a part of this component while building up its exclusive buyer base.
This is where the Mahindra brand’s strength in SUVs could come into play for the Vibe. In addition, manufacturers are increasingly realising that greater demand is coming in from Tier-II and -III regions where a growing number of young professionals are willing to spend more for a smart set of wheels. It is this buyer base, more open to trying out new brands than their predecessors, who will count in the growth script for the Vibe.
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