Mahindra Thar Roxx: In what’s truly the mother of all surprise offers in recent times in India’s auto space, Mahindra has now announced an epic discount on its new-gen Thar Roxx — the five-door version of the car that had opened to quite the pandora’s box since being showcased.
When competition is either at a premium or on long waiting, Mahindra’s decision to roll back costs in a big way is a strategic tectonic shift that has caught both rivals and buyers flat footed.
Mahindra Thar Roxx The Strategic Shift
When Mahindra first introduced the Thar Roxx four months ago as the more practical family-friendly successor to its cult off-roader, market-watchers were unanimous in their predictions of lengthy waiting periods and potential dealer premiums, since there is no denying the kind of brand equity and emotional connection that the Thar moniker enjoys.
The five-door body style, additional creature comforts, and improved daily-driver ability finally sounded like they’d take care of the key limitations that kept the Thar confined to enthusiasts and casual weekender use.
However, in shocking maneuver, Mahindra dealers nationwide began offering simultaneous discount packages that varied from ₹75,000 to a whopping ₹1.95 lakh depending on your choice of variant and location – effectively redefining the car’s value just months after it commenced sales.
“This price reduction is aimed at creating a more competitive edge in the market and the reduction has been as high as 4.3 percent in Mumbai (ex-showroom price),” said Veejay Nakra, president of Mahindra’s Automotive Division of the immediate asymmetrical move.
“In conjunction with greater than expected part localisation, we can now wave those savings on to customers much earlier than anticipated, about one year ahead of schedule, and continue to share the value with them.”
OBSERVE the INDUSTRY Further, industry observers are split on whether the explanation holds water for the aggressive discounting with some blaming it on continued pressure from the newly-launched Force Gurkha 5-door and the upcoming market launch of Maruti Suzuki Jimny 5-door — both targeting similar customer demographics albeit with different appeal.
Discounts Overview
The package discount differs greatly between the variants, with bigger price reduction offered on the higher-end models – numbers which indicate a balance of strategic upselling of people to more expensive models, and maintaining strong showroom traffic.
Entry-level AX3 fares well with a ₹75,000 price cut, and mid-ranger AX5 is priced lighter by ₹95,000-₹1.25 lakh, depending on the powertrain.
The best savings, however, are on the range-topping AX7 Luxury variants, with the (ahem) biggest package discount – worth as much as ₹1.95 lakh (comprising a cash saving, exchange bonus and complementary accessory pack worth around ₹55,000).
These accessories are things that we all know and love, stuff like rock sliders and roof racks, and interior upgrades that allow the vehicle to make a bit of profit margin whilst the buyer gets something tangible in return.
The Thar also gets a corporate and government employee discount of ₹25,000 on all variants and a rural specific signature set of agricultural profession linked discounts of ₹20,000 – a very nice touch which lends credence to the Thar’s practical credentials in rural markets, where its utility actually addresses a need for clear mobility and not a lifestyle choice.
Revised Price Positioning
And with this reduction, the effective price band for the Thar Roxx is now as follows:
AX3 Petrol Manual: ₹12.94 lakh (down from ₹13.69 lakh)
AX3 Diesel Manual: ₹13.44 lakh (previously: ₹14.19 lakh)
AX5 Petrol Manual: ₹14.15 lakh (was ₹15.10 lakh)
AX5 Diesel Manual: ₹14.65 lakh (down from ₹15.60 lakh)
AX5 Petrol Automatic: ₹15.70 lakh (down from 16.85 lakh)
AX5 Diesel Automatic: ₹16.20 lakh (down from ₹17.35 lakh)
AX7 Luxury Petrol Automatic: ₹17.35 lakh (down from ₹19.30 lakh)
AX7 Luxury Diesel Automatic: ₹17,85,000 (down from ₹19,80,000)
AX7 Luxury+ Petrol 4×4 Automatic: ₹19.05 lakh (down from ₹21.00 lakh)
AX7 Luxury+ Diesel 4×4 Automatic: ₹19.55 lakh (down from ₹21.50 lakh)
All prices are ex-showroom, with final on-road pricing depending on state-specific taxes and insurance.
This updated pricing places the Thar Roxx not only as a strong rival to direct lifestyle SUV rivals, but also as an alternative to regular compact SUVs, such as the Hyundai Creta, Kia Seltos and Volkswagen Taigun — cars which offer similar size and equipment, but not the same emotional appeal and ability as the Thar.
What sets the Thar Roxx apart
In case readers need to be reminded of the model, then it is stated that the Thar Roxx is part of Mahindra’s initiative to widen the appeal of the Thar beyond hardcore enthusiasts. Retaining the unique design DNA and capability of the Thar brand, the Roxx gets a host of practical updates including:
The longer wheelbase gives it an honest to goodness five-passenger seating and with much better rear seat comfort and easier entry and exit with its four real doors than the coupe. 3 Cargo space is also greatly improved in the rear with rear seats that actually fold perfectly flat – a big hang-up I had with the 3-door model.
There is also added attention to refinement through increased sound deadening, better climate control and rear vents and better interior materials that makes it more habitable to live with.
Core technology includes a 10.25-inch touchscreen infotainment system that wirelessly connects a smartphone, along with a digital instrument cluster for high-grade models.
For safety, you’ll find six airbags, electronic stability control, hill descent control and a tyre pressure monitoring system in all versions. All AX7 variants also feature a comprehensive suite of ADAS (Advanced Driver Assistance Systems) including autonomous emergency braking, lane keeping assist and adaptive cruise control – equipment not previously available in a vehicle of this type.
Powertrain choices will continue to keep the Thar’s rugged personality intact with the 2.0-litre mStallion turbocharged petrol mill belting out 150 horsepower and the 2.2-litre mHawk diesel engine pushing out 130 horsepower.
Transmission choices consist of a 6-speed manual and 6-speed torque-convertor automatic whilst a part-time four-wheel drive system with a low-range transfer case is offered on certain models.
Dealer Response and Market Response
First responses from the dealers indicates that the discount pep talk had a quick impact, with a few claiming that showroom traffic had doubled only days after the price cut announcement.
Conversion rates have apparently surged and are now higher than before among buyers who were “confused” to choose between the Thar Roxx and a “regular” SUV.
“When the discount was announced, customers who were comparing the Thar Roxx with vehicles such as the Creta and Seltos at the dealership finalised bookings and took delivery right away,” said Vikram Patel, who runs a Mahindra dealership in Ahmedabad.
The new pricing certainly makes the emotional value proposition of the Thar nameplate a lot easier to justify vis-a-vis the rational rationale of conventional SUVs.
This sentiment is particularly prevalent among Gen Y Metro residents that have appreciated the Thar’s unique looks and social currency, but couldn’t quite reconcile the premium you pay and the limitations of living with one in the city, day in day out.
Mahindra Thar Roxx Temporary Tactic or New Normal
The most fascinating question to me regarding this discount program, is whether this is a temporary sales push, or a permanent re-pricing of the Thar Roxx.
Mahindra has not announced a closing date to these offers and called these as “introductory benefits”, which gives it the leeway to stick to the revised pricing or revert to the sticker price depending on the market’s reception of the new pricing announcement.
It is widely predicted by industry analysts, the most plausible approach would be to retain high discounts on up-spec variants, with discounts easing for base models as production normalizes and initial market demand is met.
Such an approach would save healthy margins on the high volume-driving versions and also ensure the aspirational value of feature rich iterations.
For consumers, this is an unprecedented chance to get a vehicle with real capability, unique aesthetic and emotional brand equity for a price point a vehicle in this segment has never been available at before.
And as Mahindra fine-tunes its production lines, the current scenario where the Thar Roxx is seemingly in a buyers’ market could merely be a window before the model finds its true demand-” supply rhythm.