Tata drops prices on the Aria, Mahindra increases on XUV500



With the arrival of the Mahindra XUV500, the SUV segment in the Rs 10-15 lakh segment has gone through a complete overhaul. The success of the XUV500 on the sales front has also meant rivals have been with little or no choice but to reposition their offerings and the first to do so is Tata Motors.

In a special, limited period anniversary offer, Tata Motors has brought down the price of the nearly Rs 12 lakh Aria crossover to a lip-smacking Rs 9.99 lakh. Limited to the month of December, the base Aria 4x2 version will now be available at this reduced price. Tata Motors has struggled with the sales of the Aria since the day of its launch and despite launching the 4x2 version earlier this year at reduced prices, the sales numbers haven't set the charts afire.

On the other hand, Mahindra's price-positioning will alter a bit as it has finally increased the price of its offering. Originally launched at an introductory price of Rs 10.8 lakh for the W6 2WD version, ex-showroom, the XUV500 will now see a Rs 30,000 hike for this particular variant. The other variants - the W8 2WD will see a hike to the effect of Rs 50,000 while the W8 AWD will now be priced Rs 55,000 higher than before, ex-showroom. This price increase also marks the beginning of bookings of the XUV500 from January 2012 for a second time. Mahindra had logged 8,000 bookings for the XUV500 before it was suspended. Mahindra had originally begun with a capacity of 2,000 units a month and has gradually ramped it up to 3,000 units a month.

Read our review of the Tata Aria 4x2 here:

Tata Aria 4x2 review - Two wheels only

Read our review of the Mahindra XUV500 here:

Mahindra XUV500 test drive and review

Read our comparison of the Mahindra XUV500, Tata Aria 4x2 and Skoda Yeti here:

Mahindra XUV500 vs Tata Aria vs Skoda Yeti - Stand Out