[ACM]

The fundamental question that HM-Mitsubishi need to address is if the new(er) Pajero Sport will be perceived by people to be a vehicle on par or below the Fortuner and the Endy. If it is going to be perceived to be on par then they need to price slightly below par, if a bit higher then price it on par and if the perception itself is that the Fortuner is a better vehicle then the price has to be significantly lower than that of the Fortuner. A poll here could clarify this.

Gone are the days of pricing as per the cost of the vehicle and the margin one expects to make, the market decides the price at which one can sell the vehicle and it is all about perceptions (not of someone in the marketing dept within the company) but of the potential customers. Misubishi Pajero name has an aura to it but the vehicle itself is a bit of a let down for non off roaders who want to use it in the city and on highways and as a 5+ seater vehicle. The power and price combo let it down though I guess the shape was always liked. The same fate will befall the pajero sport is the price + perception effect is not factored in.

[maheshramaling]

Originally Posted by ACM

The fundamental question that HM-Mitsubishi need to address is if the new(er) Pajero Sport will be perceived by people to be a vehicle on par or below the Fortuner and the Endy. If it is going to be perceived to be on par then they need to price slightly below par, if a bit higher then price it on par and if the perception itself is that the Fortuner is a better vehicle then the price has to be significantly lower than that of the Fortuner. A poll here could clarify this.

Gone are the days of pricing as per the cost of the vehicle and the margin one expects to make, the market decides the price at which one can sell the vehicle and it is all about perceptions (not of someone in the marketing dept within the company) but of the potential customers. Misubishi Pajero name has an aura to it but the vehicle itself is a bit of a let down for non off roaders who want to use it in the city and on highways and as a 5+ seater vehicle. The power and price combo let it down though I guess the shape was always liked. The same fate will befall the pajero sport is the price + perception effect is not factored in.

I was talking to the Bangalore dealer and the cost of the Paj Sport (launching in next 2 or 3 weeks) will be around 30 or 31 Lacs ex showroom in Bangalore

[gaurav_chopra04]

I hear that launch of Pajero Sport is on 12th. Asian Motors will be getting 15 cars and they already have bookings for them. We can see the car in showroom from 13 onwards. Lets see how they price it.

[swiftnfurious]

Update from ODMAG via twitter

Pajero Sport to launch- finally!- on 12th. 2.5diesel, manual, 4WD, 24.5lakh

[BikerSG]

What's the difference between outlander & pajero sport?

I always thought these were the same. Only named differently for each market (challenger is another name they used for some markets).

[Harbir]

Originally Posted by BikerSG

What's the difference between outlander & pajero sport?

The Outlander is a softroader or a crossover based on the GS platform that amongst others also forms the basis of the lancer. In effect, its a tall stationwagon with good ground clearance. In that, its like the CRV and Santa Fe.

The Pajero Sport is wagon body mounted on the L200 Pickup truck chassis. SO it is far more robust than the outlander both in terms of its abilities in bad conditions and its durability and ability to absorb punishing conditions. But it also suffers the consequences of being based on a truck platform in terms of weight and on road performance being trucklike rather than car like. In that, it is like the Fortuner and the Endeavour.

[raj_5004]

Originally Posted by swiftnfurious

Update from ODMAG via twitter

Oops, we were really waiting for this car. 24.5 Lacs ex-showroom means it would cost almost 30 Lacs on-road.

Is it worth that price over a Fortuner? I could rather pick a Santa Fe instead.

[amitg79]

Originally Posted by swiftnfurious

Update from ODMAG via twitter

I guess Mitsubishi are going to shoot themselves in the foot one more time with that kind of pricing. I was hoping that Mitsubishi would price it better, specially when it is not a CBU (As per car magazines). Also, the 2.5 L diesel is well below the Fortuner's engine on power.

[nilanjanray]

Pajero Sport is a direct competitor to the Fortuner. Now why would Mitsubishi price it 5L higher than the existing market leader instead of pricing it 2-3L lower and carve out a large piece of the pie?

I would love to talk to the folks who do pricing for Mitsubishi and understand what makes them tick.

[Rajvir Bains]

Originally Posted by nilanjanray

Pajero Sport is a direct competitor to the Fortuner. Now why would Mitsubishi price it 5L higher than the existing market leader instead of pricing it 2-3L lower and carve out a large piece of the pie?

I would love to talk to the folks who do pricing for Mitsubishi and understand what makes them tick.

What i have heard is that Pajero Sport will come as a CBU unit initially from Thailand. Later on this will come as a CKD unit.
One thing more Pajero Sports priced at 24.5 lac would still incur loss to the company.
This is what i have heard from a very reliable source.

[nilanjanray]

Originally Posted by Rajvir Bains

One thing more Pajero Sports priced at 24.5 lac would still incur loss to the company.

Then they shouldn't launch it IMO. Because it would be close to 30L in a place like Bangalore. And if it priced so much higher than the Fortuner, then it will never get the kind of volumes required to build a case for CKD.

[swiftnfurious]

Originally Posted by Rajvir Bains

One thing more Pajero Sports priced at 24.5 lac would still incur loss to the company.This is what i have heard from a very reliable source.

If this is the case, then Mitsubishi better shut shop & go home man!

Questions assuming the above statement is correct.

1. If it's true, would like to know why do they launch something like this, when the company is already struggling.

2. It's pathetic that their marketing / product conceiving / pricing team could NOT find a profitable product to pitch in the Indian market in the segment.

3. They could very well have avoided launching this car and could have looked at bringing the newer versions of existing products and improved their image and bank balances.

4. Why waste money & efforts to launch a non-profitable product? They could have directed the funds in creating more dealerships / A$$ or marketing their products.

If you try and answer these questions, I don't find any justifiable answers which makes me believe that they do have some FAT margins on the Pajero sport.

Add to it, Mitsubishi is always known to make huge margins on each of it's products - so lesser numbers still help them run the show! That should be the same case with the Pajero Sport too.

[Rajvir Bains]

Originally Posted by swiftnfurious

If this is the case, then Mitsubishi better shut shop & go home man!

Questions assuming the above statement is correct.

1. If it's true, would like to know why do they launch something like this, when the company is already struggling.

2. It's pathetic that their marketing / product conceiving / pricing team could NOT find a profitable product to pitch in the Indian market in the segment.

3. They could very well have avoided launching this car and could have looked at bringing the newer versions of existing products and improved their image and bank balances.

4. Why waste money & efforts to launch a non-profitable product? They could have directed the funds in creating more dealerships / A$$ or marketing their products.

If you try and answer these questions, I don't find any justifiable answers which makes me believe that they do have some FAT margins on the Pajero sport.

Add to it, Mitsubishi is always known to make huge margins on each of it's products - so lesser numbers still help them run the show! That should be the same case with the Pajero Sport too.

First of all i am not their Sales Representative.
I cant give justifications for their actions. For me it doesnt matter if they launch Pajero Sport or not.
I am just some one who admires their products and uses them.
As this is a discussion i am sharing what i know. I would like to tell you few more things which may solve your questions
Firstly they want to reignite their presence in Indian market again.
Secondly how many products do they have in their product portfoilio ....6 or 7.
Thirdly Pajero Sports price in Thailand is abt 21 lac. Since this car would be a CBU it is obvious there would be govrenment duties.
One other thing is you can take example of Cydia, which was a failiure on account of improper advertisement.(Thanks to HM)

[swiftnfurious]

Originally Posted by Rajvir Bains

I cant give justifications for their actions.

No one expects you to! None of the questions were shot at you, FYI! That's for the readers to think and form opinions.

Originally Posted by Rajvir Bains

Firstly they want to reignite their presence in Indian market again.

Re-ignite?? With such a product? A proper VFM option like Santa Fe with almost the same price tag sells just 15% compared to the Fortuner, now Mistsubishi thought they can crack it [I doubt the spec is anywhere good as the Santa Fe]?

Originally Posted by Rajvir Bains

Secondly how many products do they have in their product portfoilio ....6 or 7.

Didn't understand what you wanted to convey with this statement.

Originally Posted by Rajvir Bains

Thirdly Pajero Sports price in Thailand is abt 21 lac. Since this car would be a CBU it is obvious there would be govrenment duties.

First of all, direct conversion of prices between two countries DOESN'T work! We have seen that the prices are not relative.

Now, if the Pajero Sport comes here as a CBU at 24L, what is the actual price of it? I say it's less than 12L in the home country! India has a 110% tax on CBUs which means that the actual price is doubled when landed in India!

Even if Mitushibishi had brought it as CKD, I guess they could have priced it at 18 odd lakhs! The "think tanks" in Mitsubishi could not figure this out as well?

Originally Posted by Rajvir Bains

One other thing is you can take example of Cydia, which was a failiure on account of improper advertisement.(Thanks to HM)

NOT only advertisement, the car was perceived as expensive right from the launch time. Thin dealer network & poor marketing also were factors!

PS:: Again none of the questions or statements here are intended at the poster. These are the questions or doubts I had when i read thru the statements!

[Harbir]

with every product, Hindustan Motors shows that it has a sarkari babu culture. As long sarkar keeps buying ambassadors, HM can keep operating like that.

The only hope that the Pajero Sport will be successful is if the market sees it as a more premium product than the Fortuner. its unlikely but not impossible.

Mitsubishi needs to end its contract with HM and start making its own product and investment strategies in India.