Mahindra’s Pack Three At Pack One’s EMI? Decoding The Strategy

Earlier this year, Mahindra announced that it will offer the Pack Three, the top-spec variant, of the XEV 9e and BE 6 at an EMI that corresponds with Pack One, the base variant. Essentially, the EMI for Pack Three will not be greater than the Pack One’s EMI. But there’s a catch. 

Basically, when you buy the Pack Three of the XEV 9e or BE 6 on loan you’ll get two options. Either pay the regular EMIs for the standard tenure or opt for a slightly lower EMI during the same tenure but make a balloon payment towards the end of the tenure. This way, you can save up for the balloon payment by making smaller EMI payments every month. 

For example, someone buying the XEV 9e Pack Three, which costs ₹30.50 lakh (ex-showroom, India) and roughly ₹32.50 lakh on road. The buyer has the option to finance it for an EMI of ₹45,450 at an interest rate of 8.99 per cent. 

It might work in a few people’s case but making a balloon payment at the end may not work for everyone. This may lure a lot of customers into buying the top-spec Pack Three variant thinking the EMI will be lower but the balloon payment could become an issue when the loan tenure ends.