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The aggressive pricing of Honda's newly launched Mobilio multi-purpose vehicle (MPV) has reportedly forced Maruti Suzuki India to offer big discounts on its own seven-seater Ertiga.
The Mobilio, Honda's first MPV offering in the country, starts at Rs. 6.49 lakh (ex-showroom price for the base grade petrol version). Ertiga's petrol variant starts at Rs. 5.80 lakh, but sources say India's biggest car maker is offering up to Rs. 85,000 discount on the model to neutralise the Mobilio's likely onslaught.
Mobilio gives Honda a chance to compete in the MUV segment, which accounts for roughly 15 per cent of car sales per month. Honda's other big competitor in the MUV segment will be Toyota's Innova, which sold around 5,400 units in June 2014.
Surjit Arora, auto analyst at Prabhudas Lilladher, told NDTV that Honda Mobilio is a very good product and could sell 2,000-4,000 units per month.
"Honda Mobilio, in terms of looks and performance, is a better product, but in terms of value for money, Ertiga stands out," he added.
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