Mahindra Renault Logan, launched a year ago, is fast catching up with Maruti Esteem and Tata Indigo as one of the most preferred car to be used as taxi, thanks to its wide body, competitive pricing, better mileage and availability in all fuel options.
Logan is a natural fit for taxis as the vehicle is highly fuel-efficient and has CNG as an after fitment that makes it price competitive vis-à-vis other vehicles in the category, says Nalin Mehta, COO, Mahindra Renault, adding that with growing demand of Logan as taxi the company is mulling to introduce a CNG version soon.
Entry-level sedan like Logan helps taxi players to provide competitive services due to low operating costs as compared to high-end cars in the A3 segment, says Prateek Roongta, MD, Meru Cabs. In the first slot in Delhi we have introduced 200 Maruti Esteems but going by the success of Logan in Bangalore, the company is evaluating the option of introducing Logan taxis in Delhi as well. In the past, sedans have scored fairly well over compact cars as taxi due to high value attached to them as well as larger space offered.
Though Maruti Esteem had so far been the largest used sedan as taxi but with no upgradation in the model since last several years before the company finally decided to phase it out, Logan started creating a market for itself, says an industry expert, adding that Logans wide body and larger boot space helped it take a lead over its counterparts in the segment. Moreover, the rising fuel cost and the availability of Logan in all fuel options, petrol, diesel and CNG, ensures that more taxi players in the industry buy Logan as it helps them to enhance their profit margins, he adds.