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Monday, April 23, 2007

Now u Believe me???

Here is an email reply that i received from a Romanian dude who was involved in the Logan project in India. I asked him what he felt about Mahindra's pricing and here's the reply:

First of all, thanks for your message!Regarding the pricing in India, I am no expert, but I am sure that you can find in India cars even cheaper that the Logan, just as it happens in Romania.I guess Mahindra Renault came up with a price that makes the car at least "potentially" attractive. The initial Logan project proposed a car at 5,000 Euro, but even in Romania the base price is now 6,400 Euro (for the 1.4 petrol engine), while in Western Europe it exceeds 7,500 Euro. The fact is that the price for Logan, just as for all cars, is not the exact value of the work put in that car: it is a price that enough people would pay, and by "enough" I mean a fine balance between the number of customers and the profit per car.

Can Mahindra Renault post a lower price for Logan? Definetely YES! They will probably do it sooner or later, once the competition heats up. But for the time being, you have to notice this: although Logan is usually named "low cost car", in reality it is "more car for less money". It doesn't come cheap, this is true, but if you compare it with other cars in terms of space, servicing costs, and even comfort, you'll find the "real" competitors with tags that are at least 2,000 USD higher.In addition to that, the diesel engine is quite a bargain in terms of consumption. I'll give you in advance what my next blog post will say: in its first trip outside the city, my Logan "drank" 4.1 liters for 100 km, which is extremely low for a car of this size, with an engine that is still not "rounded" yet!I hope this helps...
Best regards,

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