New Delhi: Nissan Motor India has been able to break several market myths with Magnite, its latest offering, right from pricing this feature-loaded complete sports utility vehicle (SUV) under the INR5 lakh bracket. Many popular hatchback cars like Maruti Baleno and Hyundai i20 are much more expensive.
Its special starting price of INR4.99 lakh is inconceivable with the rising input costs and the stringent emission and safety standards in India. Though Magnite has pulled a coup in the market, the big question is will it be able to break the Nissan jinx in India and set ablaze the Indian market?
Until recently only Maruti Suzuki, the segment leader which owns every second new car sold in India, challenged and broke all conventional barriers by aggressive and bold pricing. It did it with Alto compact, DZire sedan and Baleno premium hatch. Maruti has always been able to shake the market like this.
Now Nissan has challenged Maruti in its own game of pricing. By breaking the benchmark of the launch price, it has stolen the thunder from Maruti with Magnite’s introductory price. Its debut is more aggressive than that of Maruti Vitara Brezza SUV (INR 7.34 lakh) and even the compact hatchback Swift (INR 5.19 lakh in Delhi).
According to the initial market feedback Magnite’s price could be a gamechanger – its attributes finds the customers enticed by the best pricing equations that could end up as a huge disruptive strategy in the Indian market.~`~
Another feather in its cap is the launch timing. Magnite comes to the market in the last month of the year, often referred to as ‘Discount December’ where rebates and freebies peak for the entire year. Driven by multiple myths and beliefs, most of the new car models hit the market either in the pre-monsoon period of April-June or the auspicious festive months of August, September and October. Only these months are considered to be the best to sell cars.
The research carried out by ET Auto shows that Magnite is the only new car to be launched in December, when the sentiments are pretty low, to generate widespread interest in the market. It has bagged more than 7,000 confirmed bookings at the special introductory price of INR 4.99 lakh and beyond.
“December is the least preferred month to launch any new vehicle as it is considered a disaster to bring a new product when a full year model change is due. Magnite breaks this myth and has been able to change the perception with its successful debut and huge consumer interest,” says an auto industry veteran.
Magnite has also been able to break the shackle of introducing pricier automatic technology in an SUV in the sub-INR 10 lakh bracket. Magnite brings in an SUV body design a multi-variant CVT with three different options starting at INR 7,89,000 and going up to INR 9,35,000 (showroom Delhi). As an SUV this would give Magnite, with the turbo-paced CVT powertrain, an edge over hatchbacks that dominate the market and set performance standards for its rivals.
While the automobile industry experts are raising issues over the initial quality and performance of Magnite, the company sources say that the same ‘Made in India’ would be going to several export markets of Nissan Motors. It would be shipped to West Asia, Africa, Latin America and other global markets.
Why have customers evinced keen interest in Magnite? Simple it is. In Magnite they get a great feature-loaded connected vehicle with quality packaging. According to the initial market study, customers are particularly interested in its innovative and discernible product features. The wireless charger, the 360-degree around-view monitor and a digital instrument cluster coming in the sub-INR 10 lakh category, are making customers turn their heads from feature-specialist Korean carmakers like Hyundai and Kia Motors.
“Magnite has gone below the sub-compact SUV segment and has challenged the entry point and initial starting price of hatchbacks. Now it addresses the entire chunk of the hatchback, compact and entry-level sedan customers along with the pricier SUV customers. Potentially Nissan may wean many of them if it is able to hold on to the prices,” another industry veteran said.
According to the initial market feedback, Magnite’s price could be a game-changer. Its attributes, along with the best pricing entice customers. This could end up as a huge disruptive strategy in the Indian market. It might alter the way the companies and customers have perceived the market in terms of the price for new vehicles.
Nissan Motor India did not reply to a questionnaire sent by ET Auto. When the company responds, the answers will be uploaded.
Magnite bookings have crossed 7,200 units as per customer books till Wednesday morning, market sources confirmed. Going by the trend of the bookings it might clock at least 18,000 units in December. Already there are speculations among the automotive social media community called the ‘Nissan Magnite Club’ of its bookings going beyond 30,000 units by December 31.
Magnite deliveries will start from January 1, and the company is gearing up to meet the high demand for the car.
An auto veteran says that the auto industry is like Bollywood and the success of a product is like a movie on its first day first show. The future of many successful brands depends on the initial bookings and the customers’ continued interest that leads to final confirmations and deliveries. Here Magnite has been able to pull a coup in the market.
