plummeting sales and the discount
To boost the sales of Logan sedan, Mahindra Renault plans to offer extensive rebates in coming days. Though logan has been the best seller for Renault, it fails to take off in india. When SX4’s and City’s are selling 2500 – 3000 units per month, Mahindra-Renault sold Mahindra Renault has sold around18,000 Logans since its May launch (averaging 1500 units per month). Particularly, Logan sales is witnessing very poor sales in the last couple of months forcing the manufacturer to scale back production at its Nashik plant by around 30-40%. Mahindra Renault has cut the production at the Nashik plant from 125 units a day in the August–September period to between 70 and 80 units a day in December 2007 and that the company will keep this lowered schedule until February. This is contrary to what Mahindra Renault initial plan, the manufacturer planned to sell 50000 logan’s a year at the time of launch. Hence comes the limited period offer, an attractive entry invitation price of Rs.4.49 lakh per vehicle (ex showroom Delhi) on the fully loaded Logan 1.4 litre Petrol variant. This limited period offer will come into effect from January 7 and will be available for 45 days from this date. However Mahindra Renualt seems satisfied with the sales of logan, We are extremely delighted to receive prestigious industry accolades which are testimony to the Logan’s solid build, performance and superior mileage. The special invitation price on the petrol variant is our way of inviting potential customers to join in the celebrations at Mahindra Renault,” said Nalin Mehta, Vice President – Sales & Marketing, Mahindra Renault.”The Logan has been a huge success since its launch early last year, as reflected in the 12% market share it has carved out in the C Segment and with this attractive offer we hope to increase our customer base,” Mehta added.
Mahindra Renault raised the price of the Logan diesel variant by between Rs.10,000 and Rs12,000 per vehicle in December.
Indian’s perception on logan:
From its launch in 2004 to the end of October, some 700,000 units of the car—all its variants—have been sold across the world. However in India the respons for the Logan has been lukewarm. Here are few reasons why Logan fails to make a mark in india.
The Logan is perceived as an over-priced product for its segment in India. Globally, it is sold for around €7,000 (Rs4.03 lakh) and has proved to be a volume grosser for the French car maker. But In India, however, the car begins with a price tag of Rs4.28 lakh for the petrol variant and goes up to Rs6 lakh for the diesel version, and has aggressive competitors such as Tata’s Indigo. Also the launch of Maruti Suzuki’s SX4 this year dented the sales of logan largely.
Accolades won by Logan:
Mahindra Renault Logan has received several prestigious industry accolades since its launch eight months ago. Logan has been named the ‘Car of the Year 2007’ by HT Cars & Bikes, a supplement of the Hindustan Times and also recently won the Business Standard Motoring Jury Award 2008. The J.D. Power Asia Pacific 2007 India Initial Quality Study ranked the Logan as the ‘Best Entry Midsize Car in Initial Quality’, which is the ultimate measure in quality. The Logan received the lowest score of 65 PP100, i.e. Problems Per 100 vehicles, ahead of other leading passenger cars, indicating a high level of satisfaction experienced by customers. The Logan has also been declared the leader in its segment in new vehicle design and performance in India, according to the J.D. Power Asia Pacific 2007 Indian Automotive Performance, Execution and Layout Study (APEAL). The 2007 four-wheeler total customer satisfaction study undertaken by leading market information provider, TNS, ranked the Mahindra Renault Logan Diesel at the top of the ‘Midsize Car – Diesel’ segment with an exceptional score of 96.
What Logan teach us: The word ‘good’ doesn’t means success