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Old 11th May 2024, 08:30   #1
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Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

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One of the rare occasions when OEM reduces price, what a time to be in. This is what competition does.

Nexon sales have gone down in recent months, Tata is feeling the pinch. 3XO in new avatar is a serious challenge to Nexon and is attractively priced in lower-mid variants.



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Old 11th May 2024, 09:51   #2
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

Highest Profits/ Sales for Tata Motors. Everyone is making money They can continue to adjust the prices.

The rising middle class and the right products by local manufacturers put some of the models from two higher segments in Japan or Korea to shame. I sat in a Nexon recently, and the door trims/ upholstery- wow! it can compete with Europeans at 4 X the prices. Tata has addressed the aspirations of many who may not have the budget for the higher segment. So, people ignore whatever shortcomings exist elsewhere.

https://www.cnbctv18.com/market/earn...d-19409827.htm

Side Notes - Sometimes, I wonder what the need is to do the work. Sit back at home, invest in equities and enjoy

Last edited by Turbanator : 11th May 2024 at 09:52.
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Old 11th May 2024, 10:03   #3
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

Mahindra has very strong presence & perception in 15-30L range [Thar, Scorpio, Scorpio N, XUV700 all leaders in their respective segment]. TATA does not want a disruption in the sub 4m CSUV segment and does not want to loose leadership position or at-least the market share.

Apart from looks, 3XO is a Mini 700 (in terms of feature) and come up with great engine options at the killer price. This TATA act has 3XO effect written all over it
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Old 11th May 2024, 10:50   #4
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

Tata also needs to create space for the Curvv. If it has to be competitively priced at launch and not cannibalise the Nexon, Tata has to rearrange prices. The 4+m SUV segment is where the action is. Following the Curvv's launch, in a years time the Sierra needs to be slotted between the Curvv and the Harrier. Lack of presence in the 4+ m SUV segment meant that for the past few years Nexon line up straddled the large gap between the Punch and the Harrier.
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Old 11th May 2024, 11:17   #5
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

Main issue here is it's own product under it has cannibalised Nexon. Rise of Punch has dealt a blow to Nexon. I don't think 3XO will cause so much damage. It has been branded as a failure and I don't think it will do more. Hyundai Exter & Venue and Kia Sonet too didn't dent TATA in it's forte much.

Price drop is only in the base variants where the Punch has hit it hard. I think that is where TATA has tinkered with the pricing but not to the top end range.
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Old 12th May 2024, 09:41   #6
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

Mahindra 3XO diesel base starts at 9.99 ex showroom, ending up in a vfm <12L on road. Tata seems to have made sure they don't lose sales from the budget conscious diesel buyer to 3XO.
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Old 12th May 2024, 10:03   #7
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

Going off topic:

Thats a mind boggling 40+ variants in the Nexon lineup . Add the shades in which the vehicles can be produced , and the sheer number of combinations and permutations are mind boggling.

How does Tata manage to predict which variant + Fuel + transmission + color combination will be in higher demand and prioritise production? ( ie Factors other than profit margin)

Reading the brochure comparing the variants will thoroughly confuse the customer. Meanwhile the sales guy will have a tough time recalling which feature is not present in the XIIth variant at what ex showroom price.
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Old 12th May 2024, 13:36   #8
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

Quote:
Originally Posted by DRPSREDDY View Post
Main issue here is it's own product under it has cannibalised Nexon. Rise of Punch has dealt a blow to Nexon. I don't think 3XO will cause so much damage. It has been branded as a failure and I don't think it will do more. Hyundai Exter & Venue and Kia Sonet too didn't dent TATA in it's forte much.
Hey I agree Punch is cannibalizing Nexon sales to an extent in the electric car sales. But I don't agree with your statement that 3XO has been branded a failure. It has just been launched with excellent features, interiors, engine and gearbox combinations. Every automobile review since its launch has been positive. Also the earlier avatar XUV300 had a very decent run with an average monthly sales of 4000 units since its launch.

The 3XO launch is the reason for Tata Nexon price cuts and new variants.
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Old 12th May 2024, 16:09   #9
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

Quote:
Originally Posted by DRPSREDDY View Post
I don't think 3XO will cause so much damage. It has been branded as a failure and I don't think it will do more.
Not even a week has passed since 3XO is being sold and you claim it's already 'branded as a failure'?! Peer more into your time machine and tell us more fascinating tales of future.
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Old 12th May 2024, 18:34   #10
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

3XO for sure is adding at least 50% more to its sales figures of 300 for sure.

Its now absolutely a great value package.

And doesn't look anything like the old vehicle on three looks.
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Old 12th May 2024, 18:40   #11
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

Quote:
Originally Posted by DRPSREDDY View Post
Main issue here is it's own product under it has cannibalised Nexon. Rise of Punch has dealt a blow to Nexon.
All new Nexon has dropped 25% in sales mainly because the road presence of the old look Nexon is not there on the new Nexon. The new design has made it look modern but with no noteworthy road presence.

Apart from that the new Nexon and the Punch.EV almost similar in looks which means Punch facelift will also look the same. Now why would one want to buy a vehicle which looks similar to a vehicle one segment below it.

Also the new Nexon faced with some initial issues and niggles.
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Old 12th May 2024, 19:07   #12
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

Quote:
Originally Posted by gck_tourer View Post
But I don't agree with your statement that 3XO has been branded a failure. It has just been launched with excellent features, interiors, engine and gearbox combinations. Every automobile review since its launch has been positive. Also the earlier avatar XUV300 had a very decent run with an average monthly sales of 4000 units since its launch.

The 3XO launch is the reason for Tata Nexon price cuts and new variants.
Quote:
Originally Posted by ani_meher View Post
Not even a week has passed since 3XO is being sold and you claim it's already 'branded as a failure'?! Peer more into your time machine and tell us more fascinating tales of future.
I 100% agree with your statement that low introductory price is another reason for TATA to launch base variants of Nexon. But I was not talking about the 3XO but it's predecessor XUV300 that has met with limited success due to a smaller boot though it was spacious and did get robust engines. Though it may be all new but traits of XUV300 will hit 3XO and may not make it a cut throat competitor to Nexon.

I drove the 2023 facelift Nexon petrol. Engine was sounding like a tractor but nationalism drove it's sales for sure.
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Old 13th May 2024, 09:01   #13
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

The 2nd generation Nexon’s success is a tough act to repeat. Even for Tata. The butch looks are gone. Making it a tad non-SUV ish I suppose. In fact whenever I see the 1st Gen Nexon, it appears to have the most road presence.

The Punch stance and design language follow the 2nd Gen Nexon and it’s done extremely well. The biggest differentiation between them however was the power. And they coexisted very well despite the dimensions being eerily close.
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Old 13th May 2024, 09:42   #14
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

Definitely the effect of Mahindra 3XO pricing, but also it was about time.

TATA didn't launch a proper base variant for the diesel during the facelift launch which started from the Pure variant, but now they did launch the Smart variant, though in + and S versions only.
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Old 13th May 2024, 10:23   #15
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Re: Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L

Quote:
Originally Posted by navinmra View Post
The 2nd generation Nexon’s success is a tough act to repeat. Even for Tata. The butch looks are gone. Making it a tad non-SUV ish I suppose. In fact whenever I see the 1st Gen Nexon, it appears to have the most road presence.
Quite agree with your thoughts, this is how my 2018 Nexon XMA looks.
Tata reduces Nexon base variant prices | Petrol @ 7.99L and Diesel @ 9.99L-img20240328182603.jpg
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