The recently launched Tata Aria 4×2 launched by Tata India came to the market with a much reduced pricing. This was part of the concerted efforts of the Indian auto major to record an improvement in its sales. It seems, however, that these efforts have not improved Tata Aria sales at all. The vehicle still continues selling in low numbers. In fact, in the month of November, the vehicle recorded unusually low sales of only 140 units. Thus, the fact still remains that the Tata Aria has never been able to drive desired volumes. It had been expected by the manufacturer that the new 4×2 variant would reverse the sales fortunes of this SUV. But, it seems that these dreams are far from getting realized. The huge size of this SUV is putting off people from buying the same, at the very onset.
This trend in sales is expected to continue in the immediate future. This fact gets further strengthened at the news of the launch of the vehicle’s nemesis, Mahindra XUV 500, expected to come back with further stock within a month. Since the time it was launched, the Mahindra XUV 500 had continued to dominate its segment within the auto industry having recorded 8,000 units of sales within days of being launched. The situation was such that the Company was unable to keep pace with the strong demand for this vehicle and had to cancel future bookings of the same. Coming with a strong launch offer at Rs.10.80 lakh (Delhi ex-showroom price) turned out to be the key factor that boosted the sale of the vehicle. The Mahindra XUV 500 further attracted customers by the fact that it brought forth a revolutionary change in the designing aspect compared to previous models of the auto major. The rest, as they say is history, with its entire four-month stock being sold out.
Mahindra & Mahindra was, therefore, forced to stop future bookings of the vehicle. However, the auto major has recently announced that they are about to start accepting bookings for the car. The vehicle is going to be further launched in smaller towns and cities, a move that is expected to give the SUV another potential advantage over the Tata Aria. However, there could be a reversal of fortunes in the future for the Mahindra XUV 500 with its pricing likely to be enhanced from its present introductory offer. This price hike could shift certain price-sensitive customers back to the Tata Aria.