Nissan Magnite is aggressively priced from Rs 4.99 lakh (introductory pricing), challenging Maruti Suzuki Swift, DZire, Baleno, Vitara Brezza and Hyundai i20 despite being in a different segment.
Nissan Magnite is the latest model the Japanese automaker has introduced in India after much hype. Available at an introductory starting price of Rs 4.99 lakh, the feature-loaded Nissan Magnite compact SUV has been able to create quite a ripple in the Indian market that is dominated by Maruti Suzuki, especially in the sub-5 lakh price bracket. With this, Nissan India not only broke several market myths but probably targeting Maruti Suzuki using the latter’s own aggressive pricing strategy,
Maruti Suzuki has been known for its aggressive pricing, resulting in cannibalisation as well. This strategy is one of the reasons that led the car giant to sold every second new car in India. The carmaker has been seen doing the same thing with Alto, DZire and Baleno. The question is, will Nissan be able to break the jinx by adopting a similar pricing strategy for the Indian market?
If we check the pricing of Nissan Magnite, its super-aggressive pricing is lower than Maruti Suzuki Swift and Vitara Brezza, which are priced at Rs 5.19 lakh and Rs 7.34 lakh respectively. While the introductory pricing of Rs 4.99 lakh will be available only till 31st December 2020, the announcement surely stole the thunder from India’s largest carmaker.
Interestingly, segment-wise the Magnite competes with rivals like Maruti SuzukiVitara Brezza, Ford EcoSport, Mahindra XUV300, Hyundai Venue etc. Even after price revision, in January 2021, Nissan Magnite wll be most affordable in the segment with its starting price of Rs 5.59 lakh (ex-showroom). So far, the Nissan Magnite has arrived as a gamechanger, as the market responses to it. Also, even after price revision too, it could remain the same.
Exceptional December launch
December is an unusual month when it comes to launching a car or a two-wheeler for any automaker in the Indian market. This is usually due to the consumer perspective that restrains the buyers from purchasing new cars or two-wheelers in the last month of the year, as people tend to buy a new model in a new year, as it comes with a host of changes.
Most of the model launches in the auto industry take place in the pre-monsoon period (SUVs mostly), festive period (August-October). These months are considered as best to sell cars or two-wheelers.
December, on the other hand, is usually referred to as ‘Discount December’ as automakers offer the most number of various discounts and freebies to lure the buyers in this month. Nissan Magnite certainly broke this myth as it is the only car that has been launched in December and that too when the consumer sentiment is pretty low due to the prolonged economic slowdown and Covid-19 pandemic.
An interesting fact is Nissan Magnite has already bagged more than 7,200 bookings within 7 days of its price announcement and received over 50,000 enquiries. As Nissan said, 60% of the bookings are attributed to the top two variants of the compact SUV. It is very much evident that Nissan has struck the right chord with the pricing, even if announced in the unconventional month. he SUV is expected to receive more than 30,000 bookings by 31st December 2020, with deliveries to commence from 1st January 2021.
Considering the fact that post-festive period sees a cooling off in sales and Nissan Magnite is receiving good response in that phase could be a silver light for the automakers in the coming calendar year after a devastating 2020, which even recorded a whole month of ‘No Sales’.
What’s driving Nissan Magnite?
The bookings numbers and enquiries indicate that Nissan Magnite is drawing pretty much attention from the buyers. What’s driving the compact SUV? It comes with a host of features on board, connected technologies. The wireless charger, 360-degree around-view monitor, digital instrument cluster, Xtronic CVT are among the USPs the compact SUV comes with and these are enough to lure the young buyers who seek more from a car than just a medium of commuting.
Nissan is also offering a Tech Pack for Magnite at Rs 38,698 from the 1.0-litre B4D petrol MT XV variant, which is available at a starting price of Rs 6.68 lakh (ex-showroom). The Tech Pack includes features like car cabin air purifier, puddle lamp, ambient lamp, premium speakers etc. So far, Nissan claims the Magnite comes with more than 20 first-in-class features that are available in 20 grades.
All these features come at very aggressive pricing. With its pricing strategy, Nissan Magnite has gone below the sub-compact SUV segment. Also, it challenged some of the entry and initial starting price of hatchbacks. In all, the Magnite challenges a whole lot of hatchbacks, sedans and SUVs.
Morning shows the day
There is an old proverb, ‘Morning shows the day’, which means the way one embraces the early morning, determines how he or she feels the rest of the day. In Nissan Magnite’s case too, the starting has been pretty impressive and if it continues like this, the SUV would surely break the jinx for the Japanese automaker.
Also Read: Nissan Magnite SUV launches at Rs 4.99 lakh