FAW has been successful in their targets, hence now assembling V2 to break even. The 1.0l will be lesser priced but essentially at a 9 lakh price point.
It is more than just mindset now since you see so many 1.2 million to 1.8 million Japanese Hatchbacks on the road. People know that at these price points the hatchbacks they are getting are protecting their family and cars last easily 6-8 years, without any issue at all. While in local cars in 3-5 years you start getting costly problems. Anything over 2 million and majority of this class can afford cars from 3-4 million, hence Tivoli will be stuck in the middle at 2.5.
In any case a dealer told me yesterday that since Ssangyong is offering such a low dealer margin at 2.5, the price for base model will inevitably be raised to 2.9 million. So the dealers who push the product can make profit out of it.