Why did Mahindra discontinue its MPV Marazzo after six years?
Mahindra has announced its decision to finally discontinue Marazzo after six years. The Marazzo gave tough competition to models like the Maruti Ertiga, XL6, and Kia Carens, but did not achieve the sales success that Mahindra had planned for it. This MPV was Introduced in September 2018 with prices ranging from Rs 9.99 lakh to Rs 13.90 lakh, available in four trims, and could seat seven or eight passengers. The fact to be given importance is that Marazzo MPV sales totaled 44,793 units until June 2024.
The Marazzo's sales have been lackluster, averaging only 34 units per month over the past five months. The vehicle was available with a single 123hp diesel engine paired with a manual gearbox. Despite efforts to boost sales, including an upgrade to meet BS6.2 emission norms in April 2023, the numbers continued to drop. Mahindra has confirmed that the last batch of Marazzos will be produced in the coming weeks, with production expected to cease entirely by August. This move signifies Mahindra's complete shift to being an SUV-only manufacturer, having already stopped producing sedans like the Verito.
Since its launch, Mahindra has sold a total of 44,793 Marazzo units up until June 2024, which translates to an average of nearly 640 units per month. However, the sales sharply declined during and after the COVID-19 pandemic, with recent monthly sales barely reaching double digits. To put this in perspective, Maruti and Kia sold an average of 14,495 Ertigas and 4,412 Carens MPVs, respectively, over the last five months.
The Marazzo faced stiff competition in the MPV segment, which constitutes about 16% of the total Indian passenger vehicle market. Dominated by Toyota Kirloskar and Maruti Suzuki, and with significant presence from Kia and Renault, the competition was tough. Mahindra’s attempt to carve a niche in this segment with the Marazzo did not resonate well with buyers. The Marazzo was unique with its ladder-frame platform and front-wheel-drive setup, a less preferred combination, especially in hilly regions where rear-wheel drive models like the Toyota Innova Crysta offered better traction.
Unlike most Mahindra vehicles developed in India, the Marazzo was the first car created by the Mahindra North American Technical Centre (MNATC) in Michigan, USA. Despite being designed abroad, the Marazzo did not receive any significant updates during its market run, which may have contributed to its declining appeal. There were discussions about introducing an automatic version and a petrol-powered model, but these plans never came to fruition.
As of June, the Marazzo, which retailed between Rs 14.59 lakh and Rs 17 lakh, was available with discounts of up to Rs 93,000. This indicates a high inventory level as Mahindra tries to clear the remaining stock before discontinuing the model.
With the discontinuation of the Marazzo, Mahindra's focus is now entirely on its SUV lineup. The company is preparing to launch the Thar 5-door in the coming weeks and is also working on introducing an electric vehicle based on the XUV700 by the end of the year. This strategic shift underscores Mahindra's commitment to strengthening its position in the SUV market, where it has historically enjoyed strong sales and a loyal customer base.
In the end, The end of the Marazzo marks Mahindra's complete transition to an SUV-only manufacturer. Despite its initial promise and unique design, the Marazzo couldn't compete effectively in the MPV segment. As Mahindra gears up to expand its SUV offerings, the focus will be on leveraging its strengths in this category to maintain and grow its market presence. While the Marazzo’s journey is coming to an end, it highlights the evolving preferences in the Indian automotive market and Mahindra’s adaptability to these changes.
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