Mahindra Thar 1.5L 2WD (RWD) Expected Price With Logic | V3Cars

We’ll approach the Thar 2WD pricing in 4 steps starting with the first and most important part - Engine.

Part 1: Engine

While the 1.5L diesel engine of the Thar 2WD makes a healthy 300Nm of torque, being a smaller block with lower power output should help Mahindra save some costs in the production. The actual savings may not be that high but perceived savings of about Rs. 75,000 to Rs. 1.0 lakh should justify buying the smaller engine instead of the larger 2.2L diesel engine. After all, the mHawk branding and promotion carry some monetary value in our minds.

Part 2: Taxes

The Thar measures 3985mm for a reason. From day 1, adding a 1.5L diesel engine was part of the game plan. Doing so will make the Thar 2WD eligible for a 17% lower tax slab. This should help the Thar 1.5L diesel save about Rs. 1.50 lakh in ex-showroom prices, which include the GST and compensation cess.

Part 3: Drivetrain

On the drivetrain side, not including the 4WD should save about Rs. 1.0 lakh to Rs. 1.50 lakh in the ex-showroom price.

Also Read: 2023 Auto Expo - Maruti Suzuki To Showcase Jimny SUV

Note: List of  Upcoming Mahindra Cars

Part 4: Competition

Finally, there’s the competition. So far, the Thar has enjoyed a free run as the Force Gurkha doesn’t pose a serious challenge in terms of sales. While it is still a competent product, the Thar commands a greater respect among non off-roaders and has a brand cache like few other massmarket cars.

For the first time, the Thar is likely to face some competition from Maruti Nexa Jimny. Off-roading capabilities aside, the Jimny just doesn’t have the road presence to challenge the Thar. But it has a huge sales and service network, which alone could take a big bite into the Thar’s pie. So, keeping a lucrative starting price will help the Thar establish itself as the undisputed king of the off-roader segment.

Mahindra Thar 4WD Diesel Prices (For Reference)

Following are the ex-showroom prices of the 3-door Mahindra Thar 4WD:

Based on these prices, a basic extrapolation leads us to a starting price of Rs. 14.18 lakh for the Thar diesel-manual 4WD.

Mahindra Thar 2WD 1.5L Diesel Expected Ex-Showroom Prices

Assuming a price drop of Rs. 1.0 lakh for the smaller engine, Rs. 1.50 lakh for the lower taxes, and another Rs. 1.0 lakh for 2WD instead of 4WD, we come to a base price of Rs. 10.68 lakh for the 2WD diesel-manual AX (O) variant. Once we factor in the competition Mahindra are expecting from the Jimny and Mahindra’s history of having lucrative starting prices (e.g. Scorpio N, XUV700), we can safely assume that the Thar 1.5L diesel 2WD could cost Rs. 9.99 lakh (ex-showroom).

A sub Rs. 10.0 lakh price tag seems like it’s too good to be true for a car with unmatched SUV road presence. More importantly, it’ll crush the Jimny before it can take flight. Unfortunately, the Jimny will also have to deal with a 19% higher tax slab than the Thar 1.5L diesel 2WD, making it more challenging for Maruti to compete with the Thar.

To make up for some of the margins on the lower variants of the Thar 2WD, Mahindra may make the higher LX variant a bit more expensive. We don’t expect the Thar to continue with these prices for long. However, if the market conditions remain lukewarm, then Mahindra may maintain these inaugural prices for longer than expected. They are also stretching the Scorpio N’s inaugural prices long after announcing that the launch prices were valid only for the first 25,000 bookings.

If the market gives a good response to the Thar 2WD and the Jimny’s numbers dwindle like those of the S-Cross did, then Mahindra will most likely revise the prices. Killing the Jimny is the Thar 1.5L 2WD’s only mission. If the Jimny fades into the background, then it’s unlikely that it’ll ever manage to emerge again. The S-Cross too never bounced back after a disastrous starting price despite huge price corrections. Maruti will have to launch the Jimny with an aggressive price tag from the get go and maintain those prices for a good while if they want to have a shot at challenging the Thar.

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