Kitna Deti Hai (or, what is the fuel efficiency?) used to be the first question a buyer asked about a car at a dealership. It was so important that Maruti Suzuki even ran an ad campaign on the same, almost a decade ago.
But the world has moved beyond ‘Kitna Deti Hai’, and today safety, features on the dashboard and comfort have become far more important buying factors, according to Veejay Nakra, president, Automotive Division, Mahindra & Mahindra Ltd.
Nakra told FE that the hierarchy of needs of customers has changed considerably. “Technology and features – which didn’t figure in the top-5 purchase drivers some years ago – are at the top of the list,” he said. “Fuel efficiency is important, there is a value-conscious buyer who wants a lower total cost of ownership, but majority buyers don’t want to compromise on design, technology, features, performance and safety, at the expense of fuel efficiency.”
At Mahindra, 60-70% sales come from top-end variants of its cars. “In the XUV700, more than 70% demand is for top-end variants. Even in the XUV300 – a Rs 9-12 lakh SUV – 60% demand is for top-end variants,” he said.
Splurging on top-end variants of cars has become an industry
Similarly, 90% sales of Kia Seltos
Toyota Kirloskar Motor sells the Urban Cruiser Hyryder in three fuel types – petrol (Rs 10.86-17.34 lakh), CNG (Rs 13.56-15.44 lakh) and Hybrid (Rs 16.46-19.99 lakh). Of these, Hybrid variants account for almost 80% sales.
But a focus on top-end variants doesn’t mean Mahindra is neglecting budget buyers. “We offer almost 30 variants on an SUV like the XUV700, so there is a variant for every buyer,” Nakra said.
On-road prices of the XUV700 range from about Rs 15 lakh (MX Petrol variant), going up to more than Rs 30 lakh (for the AX7 Diesel
“The aim is to offer something to everyone. We call it smart varianting strategy. In entry and mid-level variants, we offer a hero feature – it could be ADAS or sunroof or something else – followed by other features,” Nakra said. “In top variants, we offer everything, so there is no need to go to expensive luxury cars at more than double the price. Our SUVs are also very safe, with the Scorpio N, XUV300 and XUV700 having earned 5-star Global NCAP safety rating, and safety has become a big car
Even though Mahindra is focusing on safety, it is possibly the only company that still offers side-facing jump seats at the rear in models such as the Bolero Neo. Such seats, safety experts argue, aren’t supposed to be safe in the event of an accident.
“We have to strike a balance between safety and consumer needs. For example, in certain parts of India
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