In what is seen as a ‘do or die’ move, Nissan Motor India has launched the Magnite compact sports utility vehicle (SUV), ‘compacting’ the price also at ₹4.99 lakh (ex-showroom, Delhi).
Priced much less than many premium hatchbacks and even an entry-level sedan, this move is sure to kick off a price war in the category. Competition includes Maruti Suzuki Vitara Brezza, Hyundai Venue, Kia Sonet, Mahindra XUV300 and Tata Nexon.
Though Nissan said it's an introductory price and valid for bookings till December 31 only, many are surprised to see such an aggressive pricing with the top-end also priced at ₹9.35 lakh (ex-showroom, Delhi) though the engine is the same — 1-litre petrol, turbo.
One reason for the aggressive pricing could be that Nissan is among the last companies to enter the highly competitive compact SUV segment. The other reason could be that it wants to mop up customers before Renault launches the Kiger (around March), the twin of the Magnite and produced from the same factory in Tamil Nadu.
“This is not an aggressive or disruptive pricing. I would say it is a revolutionary pricing in the auto industry. Because, right now, if anybody has to price a hatchback or a sedan, they also have to keep in mind that an SUV is available at this price,” Rakesh Srivastava, Managing Director, Nissan Motor India, told BusinessLine .
He said the company added 20 showrooms and 30 workshops last month to keep up the promise of servicing in 90 minutes.
Puneet Gupta, Associate Director at IHS Markit, said the Magnite can be a lifeline for Nissan in India. Globally, there are reports that if the model does not become successful in India Nissan may use the facility for exports. “Such an aggressive pricing means they are trying to eat the hatchback market too,” he added.
“Magnite could be another reason to bring more footfalls to the showrooms post the festival season rush for the auto industry. If it can do bookings of 3,000-4,000 units over the next two months, it could be a good sign for Nissan,” said another Delhi-based analyst.
And there are some who feel it will all finally depend on how happy the dealers are with the product.