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Old 4th March 2013, 17:56   #16
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

A price cut in just the third month of its launch for the hatchback version. Not a good idea. Such moves will not go down well with potential customers as especially in India, a unseasonal price cut in this industry is a sign of low sales. Even existing customers would actually feel they have been ripped-off.

This has been the trend with most manufacturers these days. Test the waters with slightly high prices, then when they realise that their product is not selling well, offer price cuts. If MSIL of HMIL do it, its not an issue because they occupy more space in the customers mind during purchase decisions. Chevy doing it is like digging their own grave.
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Old 4th March 2013, 18:03   #17
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

Quote:
Originally Posted by racer_ash View Post
This has been the trend with most manufacturers these days. Test the waters with slightly high prices, then when they realise that their product is not selling well, offer price cuts. If MSIL of HMIL do it, its not an issue because they occupy more space in the customers mind during purchase decisions. Chevy doing it is like digging their own grave.
Actually, they are already in their own grave pit. This is just a action to close their grave themselves to make sure they never show up again

Sorry, could not resist.

As you said, yes. They should have atleast tested with the promotional offer prices to check the pulse of the market. I wonder if they do something called "Market trend & research" before positioning or pricing the products.
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Old 4th March 2013, 18:35   #18
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

Well a little off topic, I've seen 95% off the replies to the thread, Chevy does not posses the "awe" factor or a respectable name in any market. Well that's true. But since the company has invested a lot into India, somethings are bothering me.

Was it right to scrap the Opel name from the market? Had they moved on with slow selling Corsa, Vectra,(not making much money, basically the same case with Chevy) by now we would have the Corsa(based on the Grande Punto), Astra, Insignia etc. Which would have sold, may be because of the "German Engineering" tag?

Was/Is Chevy going in the right direction? Bringing on the Chinese counterparts would bring in some taxi/fleet sales but would surely rip you off your Captiva and Cruze customers. Remember Chevy ain't a Toyota to see a 2K Innovas(Taxis etc) parellel to Corolla Altis and Fortuner.

Is Chevy advertising right? The VW brand entry into India was Mind Boggling, they always have very clever Print ads which strike the chord. Take the Sail Hatch, I suppose I haven't seen a single ad in The Hindu paper until now except in some occasions where it was advertised along with the Beat Diesel. Learn from VW how to use your PR/Advertising money efficiently.

Is it time for Chevy to up the game? Bring in some Halo cars, run through major Indian cities like an ad campaign, build some brand name and all?

Whatever the reason may be, I see Chevy ain't the aggressive or more appropriately active enough(keep aside aggressive) with the Indian Market. Honestly, If I weren't on TBHP, I will have never know a car Sail is existing.
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Old 4th March 2013, 19:41   #19
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

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Originally Posted by a4anurag View Post
This is where I am totally confused as to why this sudden price slash by Chevy?

If the car is and worth the price then what may happen no discounts or any should be on offer (just like the Swift Diesels).

Hope this price slash doesn't indicate any problems efforts to clear the stocks!

Anurag.
You are absolutely right. The problem with the car was not the pricing. The proof is, the price cut will do no good.

Sail is very similar to Figo. Both have plenty of space. Both look dated. But then, the Figo has much better handling, the interiors look better and is even priced lower. To top it off it is a tried & tested model. So unless the Sail provides anything that differentiates it with Figo it was supposed to be doomed from day 1.

Today there is a plethora of hatchbacks in Indian market. And the ones successful definately have a USP.
Swift - Performance, Handling, Style, Reliability, resale.
I10 - Performance, Interiors
I20 - Interiors, Features
Figo - VFM, Space

Even you dont pick any of there there are other choices.
Ritz, Vista, Liva, Micra, Polo, Fabia, Brio, Punto.
Why on earth would you buy UVA.
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Old 4th March 2013, 20:27   #20
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

Autocar states that these reduced prices are for 2013 models and for the 2012 ones there is a further discount of another Rs 25000 which makes it at Rs 3.94 lakhs.
The reason could be the dwindling sales of this dated looking hatchback hitting a peak of 1,595 units sold in November, 2012 to a paltry 560 units sold in February, 2013.

Last edited by rajeev k : 4th March 2013 at 20:30.
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Old 4th March 2013, 20:46   #21
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

The way the cars are priced in India, customers are getting ripped off in daylight. All cars are way too costly when compared to NA market, may be the government taxes are to blame.

Good to see that manufacturers are dropping prices, it shows a clear trend of growth tapering off. If the trend continues other manufactures will follow soon. Remember the 5-8% cut is not actually a price drop, its just they are removing the layers of small recent hikes.

A prolonged sluggish demand will force a drop in prices across the board, I think this trend will continue till next general election.

Last edited by GTO : 7th March 2013 at 14:53. Reason: Please PROOF-READ your posts before submitting. Too many spelling & grammar errors.
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Old 4th March 2013, 22:28   #22
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

In a matter of few days, tata and chevrolet have dropped prices. If the downturn aggravates and maruti and hyundai sales are hit too, the scene will turn interesting. Maruti with its large capacity can't afford a big drop in sales.

I'm predicting we will see big price cuts/discounts if the downward sales trend continues for the next 4-5 months.
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Old 5th March 2013, 18:13   #23
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

They should cut the name U-VA first after the poor sales of the previous Aveo U-VA. A brand new name for a brand new vehicle is always give better impact.
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Old 5th March 2013, 19:38   #24
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

I am in love with the policy of launching a new car at the least possible price rather than the other way around. You launch your car at the lowest price point possible and then let the response from the market dictate its future pricing. We have the XUV500 and the Duster as perfect examples of the same. Imagine the initial image they would have managed to create if they had launched this car at 3.9Lex-showroom to begin with rather selling it at discounts now. And when you increase prices gradually then I feel in a way the customer gets more confidence in the product that its selling well and company is backing it.
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Old 6th March 2013, 06:40   #25
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

This was an expected move from Chevrolet after they learnt their lesson with the Sail U-VA pricing and the resultant lacklustre sales. A price cut for the hatchback was always on the cards once they disclosed the prices for the sedan. To avoid earning the displeasure of early U-VA buyers, Chevy better offer them a cheque for the differential amount or at least give them free accessories, extended warranty, maintenance package etc.

The new prices have not been updated on their website yet. In fact, the section called "prices" has disappeared - this must be due to the update process for the Sail U-VA, Tavera and Captiva.

The Sail hatchback is a very competent, comfortable and well-rounded car. With this price cut, it becomes an excellent package and a worthy contender in the Ritz/Figo/Vista/Liva sub-segment of hatchbacks.

Last edited by RSR : 6th March 2013 at 06:42.
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Old 6th March 2013, 11:30   #26
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

I stopped by at Singh Motors, Kharadi, Pune last evening to check out the twins. The sales staff assigned was a kid, unkempt, unclean and knew nothing about what he was selling. He was very quiet once i asked him a few questions based on what i'd read in the official reviews. The cars themselves looked solid, spacious but lackluster inside out. If one really wants to buy the SAIL, the cherry red (Super Red as per Chevy) is the best color.

The dealer was still showing the price list released on 29-Jan. When challenged, he said that though the news papers are talking about price cuts, they have officially not heard from Chevy. When i said that there have been definitely price cuts and these prices are ridiculous for a car that sells less than 1000 units, he said we can negotiate when you are ready.

Here are the prices on the price list i've with me for OTR in Pune (as per 29th Jan price list).

Hatch Back
1. LS : 7,05,832/-
2. LS + ABS : 7,43,915/-
3. LT : 7,94,443/-

Sedan
1. Base : 7,48,102/-
2. LS : 7,83,803/-
3. LS + ABS : 8,08,542/-
4. LT : 8,92,501/-

I also asked him about the dealer fitment options that were launched by Chevy quite immediately after the car itself was launched : start/stop button, entertainment system with screen integrated in the front seats etc. He was clueless about these.

To me, the price for LT sounds unreasonable given that you get 2 airbags, ABS and loads of space and nothing else to write home about. So unless Chevy really updates the interiors, its going to remain a dud. Am sure of it now after seeing it in flesh. Even after a 50k price cut on these prices, they somehow just don't seem desirable.

And why the 1lac premium for the LT sedan over LT hatch?? All i'm getting is a boot and seats that don't fold down. The hatch is way way more practical for a small family of 3 like mine! Its exactly the same as the sedan but i get the flexibility of folding rear seats and get close to 1300lts (i think thats what he said) of total boot space.

The sales guy made me fill the customary inquiry form and asked me when should he call me. I said i'll look around for cars from other manufacturers and make up my mind. To which he said :
Quote:
ok sir. call me once you have finalized if you are interested in Sail.
When did the art of selling die?

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Old 6th March 2013, 13:38   #27
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

Yesterday, a new Chevy dealer in town showcased the car in a local sector market. The cars being LS was a big downer and looked very utilitarian and dated to me (this, coming from a Figo owner)
But, the space - specially the boot - is very big.
Startling was the sales executive attitude. He told me that the car was selling well and there is a waiting period. His dealership will give immediate delivery. I said that from what i know, its not selling well - so how can there be a waiting period.
He saw me, my bike helmet - and lost interest in talking to me.
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Old 6th March 2013, 21:57   #28
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

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Originally Posted by Nilesh5417 View Post
....And why the 1lac premium for the LT sedan over LT hatch?? All i'm getting is a boot and seats that don't fold down.
That's the same case with rest of the hatch-sedan siblings too. Some variants has difference of 1.3L ex showroom itself. People who think they need the status or the practicality of a boot don't mind paying extra for that.
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Old 6th March 2013, 23:05   #29
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

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Originally Posted by agbenny View Post
They should cut the name U-VA first after the poor sales of the previous Aveo U-VA. A brand new name for a brand new vehicle is always give better impact.

Name : I perfectly agree with the same. By attaching the name of a failed model - are they digging their own grave? Is there any shortage for "names" for a new model? If I was the brand manager, I would have cut "UVA", before it is launched.

Shape : A historical fact is Indian car lovers are not great fan of elongated hatches. Cars like Indigo Marina, Fiat Uno, Honda Jazz etc never performed in the market. Figo Sales is because of the clear positioning - Comfort @ VFM. Anybody who want bigger vehicles opts for MUVs (like Innova, Ertiga etc) or sedans. So I feel Sail sedan will perform much better than the hatch.

Brand Image : Even though GM products are great across the globe, they didn't recovered from the brand issues in India, especially among the middle class because of their inconsistency in models and pricing. Many customers, especially in B Class cities are not confident - to own a chevy - especially because of resale value. Who knows that, their recent price cut is to push the stock and kill the model? Here GM has to come out with some strong customer loyalty programs to woo prospects and existing customers.

Market Positioning : GM's market positioning strategy of Sail UVA is not clear What are their USPs for this model? - VFM / Quality / Style / Space / Technology / Comfort / Reliability. Whatever, it need to be clearly communicated to the prospects in an effective way, which I find the company is lacking. When other companies are giving full page ads in newspapers, most of the GM ads are limited to few columns and don't have much influencing captions / messages.


Other than the shape factor, the company can correct all others, with some deliberate effort. Last but not least, whichever Chevy dealers I see (at least in Chennai) are not aggressive, which needs very serious attention. Hope they can make it...

Last edited by sunil8089 : 6th March 2013 at 23:08.
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Old 7th March 2013, 10:33   #30
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Default Re: Chevrolet cuts Sail U-VA price by Rs. 25,000!

I looked through some of the advertising they had released and i think their main USP or rather point that they were trying to drive was along the lines of Space , what has failed , in my opinion , that they have not been able to establish that properly , and secondly while space matters that alone is not something to create a differentiation for the car , it needs to have more.

Needless to say i am not suggesting that if they had established the core value of the car that it would have done better in terms of performance than it is doing right now.

Also just noticed this on their website - ZigWheels has given the car a "Premium Hatchback of the year" Award ? would this car even classify as premium to begin with?


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Name :

Market Positioning : GM's market positioning strategy of Sail UVA is not clear What are their USPs for this model? - VFM / Quality / Style / Space / Technology / Comfort / Reliability. Whatever, it need to be clearly communicated to the prospects in an effective way, which I find the company is lacking. When other companies are giving full page ads in newspapers, most of the GM ads are limited to few columns and don't have much influencing captions / messages.
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