Mahindra & Mahindra, the country's leading utility vehicle maker, has been offering discounts on its first compact Sports Utility Vehicle (SUV), Quanto by Rs. 44,000 in the Indian auto market. Industry experts are of a view that the move has been taken by the company to deliver a stiff competition to the new entrant Ford EcoSport, which has been performing well in the respective segment. It must be noted that Mahindra has not reduced the ex-showroom prices of the Quanto; however discounts include other benefits.
In its new scheme, the company has been offering free insurance of more than Rs. 30,000 and an exchange bonus of around Rs. 10,000, along with corporate/government discount of around Rs. 6,000. In addition, Mahindra has also offered a number of freebies and goodies for buyers, from the end of its authorised dealers. Experts believe that this attempt will reduce the difference between on-road prices and ex-showroom prices of the model by a significant amount. It must be also noted that the auto company recently increased the prices of its cars between Rs. 6,000 and Rs. 14,000.
Auto analysts have a view that compact SUV segment of the Indian auto market is witnessing the launch of new models from quite a long time, which is increasing the level of competition among auto makers. The increase in competition is thereby forcing key players of the market to reduce prices of their models, in order to effectively compete with the likes of foreign companies.