When Mahindra launched the Marazzo in 2018, it was positioned as a premium MPV (Multi-Purpose Vehicle) designed to bridge the gap between the Maruti Suzuki Ertiga and the Toyota Innova Crysta. With its unique design, premium features, and a powerful engine, Mahindra aimed to capture a significant share of the growing MPV segment in India. However, despite its potential, the Marazzo failed to leave a lasting impact on the market.

Design and Features

The Mahindra Marazzo was co-designed by Mahindra’s North American Technical Center and Pininfarina, the renowned Italian design house. The vehicle’s design was inspired by a shark, giving it a unique, aerodynamic shape. The front grille, sharp headlamps, and swept-back roofline gave it a distinct presence on the road. Inside, the Marazzo featured a dual-tone dashboard, a 7-inch touchscreen infotainment system with Android Auto and Apple CarPlay, automatic climate control, and captain seats in the second row (in select variants). The interior was spacious, with an airy feel, thanks to the large windows and generous legroom in all three rows.

Specifications

Fuel Type	Diesel
Engine Displacement	1497 cc
Max Power	120.96bhp@3500rpm
Max Torque	300Nm@1750-2500rpm
Boot Space	190 Litres
Transmission	6 Speed Manual
ARAI Claimed Mileage	17.3 kmpl

Pricing

At launch, the Marazzo was priced competitively, starting from around ₹10 lakh and going up to ₹14 lakh (ex-showroom). This placed it in a sweet spot between the more affordable Maruti Suzuki Ertiga and the premium Toyota Innova Crysta. However, this pricing strategy may have contributed to the confusion among buyers regarding its positioning in the market.

Reasons for Failure

Despite its strong attributes, the Mahindra Marazzo struggled to attract buyers. Several factors contributed to its underwhelming sales performance:

1. Confused Market Positioning: The Marazzo was positioned between two strong competitors—the budget-friendly Ertiga and the more premium Innova Crysta. This left potential buyers confused about where the Marazzo truly fit in the market. It wasn’t as affordable as the Ertiga, nor did it have the brand value and feature-rich appeal of the Innova. Add to it, the largely commercial sales of the Marazzo, disincentives private buyers to buy it.
2. Limited Powertrain Options: The Marazzo was only available with a diesel engine and a manual transmission. In a market increasingly shifting towards petrol engines and automatic transmissions, this limited the Marazzo’s appeal, especially in urban areas where automatic transmissions are highly sought after. Additionally, the Diesel engine on the Marazzo wasn’t anywhere close to as refined as the Diesel engines of Mahindra are, today.
3. Lack of Strong Brand Recall: While Mahindra has a strong reputation in the SUV segment, its brand recall in the MPV space was limited. The Marazzo, despite its merits, failed to establish a strong identity, especially when compared to long-standing competitors like the Ertiga and Innova, which had built a loyal customer base over the years.
4. Aggressive Competition: The MPV segment was already dominated by the Maruti Suzuki Ertiga and Toyota Innova Crysta. The Ertiga offered a more affordable, petrol-powered alternative with a trusted Maruti badge, while the Innova Crysta catered to premium customers with its powerful engines, extensive features, and Toyota’s reliability. The Marazzo, despite being a middle-ground option, failed to carve out a niche for itself.
5. Marketing and Awareness: Mahindra’s marketing strategy for the Marazzo was not as aggressive or effective as it needed to be. The vehicle’s unique design and features were not highlighted sufficiently to create a buzz in the market, leading to poor awareness among potential buyers.
6. Economic Factors and COVID-19 Impact: The economic slowdown in India, followed by the COVID-19 pandemic, further dampened the demand for new vehicles, especially in the MPV segment, which often sees purchases influenced by economic stability and disposable income.

Competition Analysis: Why Ertiga and Innova Crysta Succeeded

• Maruti Suzuki Ertiga: The Ertiga’s success can be attributed to its affordable pricing, reliable Maruti badge, and the availability of both petrol and diesel variants. It also offered automatic transmission options, which widened its appeal. Maruti’s extensive service network and the strong resale value of its vehicles also played a significant role in the Ertiga’s dominance in the segment.
• Toyota Innova Crysta: The Innova Crysta, on the other hand, continued to be the go-to choice for customers seeking a premium MPV experience. With its robust build quality, powerful engines, luxurious interiors, and Toyota’s reputation for reliability, the Innova Crysta maintained a stronghold in the segment, especially among buyers who didn’t mind paying a premium for quality and durability.

Sales Performance of the Marazzo

The Mahindra Marazzo witnessed a tepid response in the market, with sales figures far below expectations. In the first year of its launch, the Marazzo managed to sell around 15,000 units, but these numbers steadily declined over the years. In contrast, the Maruti Suzuki Ertiga sold over 90,000 units in FY 2019-20 alone, while the Toyota Innova Crysta clocked over 50,000 units in the same period.

By 2021, the Marazzo’s monthly sales had dwindled to just a few hundred units, leading Mahindra to gradually phase out the model from many showrooms across the country.

The Aftermath and Mahindra’s Response

The failure of the Marazzo prompted Mahindra to rethink its strategy in the passenger vehicle segment. Learning from its mistakes, Mahindra focused on launching products that played to its strengths—SUVs with strong off-road capabilities, powerful engines, and advanced technology. This shift in strategy led to the successful launches of the Mahindra XUV700 and the Scorpio N, both of which have been well-received in the market.

The XUV700, in particular, has been a game-changer for Mahindra, offering a perfect blend of performance, features, and pricing, while the Scorpio N has capitalized on the strong brand equity of the Scorpio nameplate.

Our View

The Mahindra Marazzo, despite its promising start, was ultimately a misstep in Mahindra’s product lineup. A combination of confused positioning, limited powertrain options, and aggressive competition led to its downfall. However, the lessons learned from the Marazzo’s failure have helped Mahindra to pivot and succeed with new, game-changing models that are now driving the company’s growth in the highly competitive Indian market.

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