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Old 15th March 2016, 12:44   #136
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

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Originally Posted by karthik008 View Post
We recently got the Figo Aspire DCT and I was at the showroom to collect some papers last weekend. On enquiring about the price cut on the Ecosport... The SA told me that the company has taken benefit of a "Make in India" benefit offered by the govt for its factory in Madras and Ford has passed on the entire benefit to the dealers and consumers. If true, this is a well timed strategy to counter the Brezza.
I couldn't stop laughing when I read this - what a bunch of nonsense! Sales folks will say anything to unsuspecting customers. I would love for you to go and ask him what is the "Make in India" benefit that Ford has received.

They obviously can't say that we are having sleepless nights because of the Brezza and hence we reduced the prices.

Ford missed a trick by not ramping up production and selling 6-7k EcoSports every month which could have easily been the case. Now they are scurrying around trying to protect the 3k sales.

Last edited by avdhesh15 : 15th March 2016 at 12:47.
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Old 15th March 2016, 13:23   #137
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

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Originally Posted by amolathalye View Post
Hi ,

Great discussion going on. I feel the Maruti Vitara Brezza has got advantage of larger cabin. In the videos available on the net the rear bench looks better and seems to have better leg room / head room and can accommodate three passengers well. This could be the biggest advantage over cramped rear bench of Ford Ecosport.

Regards
Amol
The small rear bench of the Ford Ecosport is a deal breaker for me. But going by the number of positive comments in favour of the Ecosport here, I am beginning to think I'm in the minority camp. As an average middle class Indian, I can't imagine paying ₹10 lakhs for a car that can't seat 5 people comfortably.
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Old 15th March 2016, 13:23   #138
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

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Originally Posted by karthik008 View Post
We recently got the Figo Aspire DCT and I was at the showroom to collect some papers last weekend. On enquiring about the price cut on the Ecosport... The SA told me that the company has taken benefit of a "Make in India" benefit offered by the govt for its factory in Madras and Ford has passed on the entire benefit to the dealers and consumers. If true, this is a well timed strategy to counter the Brezza.
But the Ecoboost engines are a direct import i presume. The price cuts we are seeing right now is because of the cutthroat competition. The only model right now which is selling well from the Ford stable is the Ecosport. I hardly see any Aspires or Figos on road, infact i see the old generation Fords (read Ikon, Fiesta classic and the old gen Figo) more. Sad to see a good VFM product suffer.

Last edited by rakesh_r : 15th March 2016 at 13:29.
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Old 15th March 2016, 19:34   #139
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

Thanks to the BHPian Karthik Chandra for this post in the Vitara Brezza thread -

http://www.team-bhp.com/forum/indian...ml#post3932349 (The Maruti Vitara Brezza @ Auto Expo 2016)

I tried to compare the no. of units of Ecosport, Ford has to sell to offset the reduction in prices (based on the below post in one of the sales thread).

http://www.team-bhp.com/forum/indian...ml#post3929040 (Top selling cars & their sales % contribution to the company)

Considered the last 12 months' (Mar '15 - Feb '16) average number of units of Ford Ecosport - taken from T-BHP sales threads.

Assumptions:
#1 - Median Ex-Showroom Price (Delhi) before price reduction - 900,000 (Source: Carwale.com)
#2 - Median Ex-Showroom Price (Delhi) after price reduction - 840,000 (Source: Carwale.com)
#3 - Average Factory Price of Ecosport - Cost to Ford for manufacturing 1 unit - 700,000 (this is just a guess - it can be anything). So, the profit to Ford on selling a single unit of Ecosport - 200,000 before price reduction and 140,00 after price reduction.

Name:  Ford_Ecosport_Revenue_Analysis.png
Views: 5192
Size:  11.4 KB

1. Ford has to sell 235 more units on a monthly basis to achieve the same revenue generated by Ecosport (Last 12 months' average - 3295 units, Target # of units to achieve same revenue - 3530 units).

2. But, in order to fetch the same profit they have garnered as before, Ford has to sell 1412 more units monthly to achieve the same profit numbers (Target # of units - 4,707 units).

3. Selling close to 5K units consistently on a monthly basis will be a big challenge to Ford, considering they were not even able to maintain this level during their initial launch. Now, with the launch of Vitara Brezza, this is going to be an impossible task - since I think Vitara Brezza is going to be the run away leader of the segment even after accounting for Ecosport's price reduction.

Need to wait and watch the upcoming sales numbers to know whether Ford's move has brought them fruits or it has back-fired.
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Old 16th March 2016, 01:23   #140
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

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Originally Posted by jpcoolguy View Post

I tried to compare the no. of units of Ecosport, Ford has to sell to offset the reduction in prices (based on the below post in one of the sales thread).


Need to wait and watch the upcoming sales numbers to know whether Ford's move has brought them fruits or it has back-fired.
Good work. But believe issue is not if Ford would have its top & bottom lines intact after the price reduction. Its more or less sure that both the numbers still will suffer.

Point is what could have happened to Ford's numbers in absence of this price revision. The probability that time was of a very high damage for Ford which they are just trying to contain.
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Old 16th March 2016, 01:54   #141
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Originally Posted by astrono_me View Post
The small rear bench of the Ford Ecosport is a deal breaker for me. But going by the number of positive comments in favour of the Ecosport here, I am beginning to think I'm in the minority camp. As an average middle class Indian, I can't imagine paying ₹10 lakhs for a car that can't seat 5 people comfortably.
Same position as you. The ecosport is a great driving vehicle but the space and low seating height are the turn off
If you are not keen on "kitna deti hai" then the TUV 300 provides your requirements for better ride,ample space,better steering,and more fun to drive lagless engine compared to the brezza and it also comes in AMT .
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Old 16th March 2016, 09:05   #142
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

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Originally Posted by rsm97 View Post
Good work. But believe issue is not if Ford would have its top & bottom lines intact after the price reduction. Its more or less sure that both the numbers still will suffer.
Agree with you here. Like you said, it's not about top / bottom lines, but more about the survival of the brand. If they have not reacted now, down the line Vitara Brezza would've killed Ecosport and that will ensure Maruti is having monopoly in the segment and they may even increase the prices of Brezza - similar to what Creta has done to Duster/Terrano twins and still it is overpriced.

With Ford playing its card right, the pressure is on Maruti now - but I still think think that they may not be caring much till the waiting periods are running into months. But, they will not have any leeway to increase the prices of Brezza in the future.
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Old 16th March 2016, 09:07   #143
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

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Originally Posted by SDtorque View Post
Same position as you. The ecosport is a great driving vehicle but the space and low seating height are the turn off
What is this low seating height? This is the first time I have heard of low seating height in Ecosport? Pretty much from Trend+ onwards, you get seat height adjust and the seats have a massive travel range which can go low down to those who prefer car like position and high up for the completely high up position. The top most position for me results in head touching the roof since I am 6 feet tall.

I prefer it all the way down so it feels like a car.
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Old 16th March 2016, 09:26   #144
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

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Originally Posted by Vid6639 View Post
What is this low seating height? This is the first time I have heard of low seating height in Ecosport? Pretty much from Trend+ onwards, you get seat height adjust and the seats have a massive travel range which can go low down to those who prefer car like position and high up for the completely high up position. The top most position for me results in head touching the roof since I am 6 feet tall.

I prefer it all the way down so it feels like a car.
Why don't they give passenger seat height adjustment as well? It is such a help for smaller built people!

Very few cars offer this important feature. I don't know why these manufacturers consider this a luxury.
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Old 16th March 2016, 12:26   #145
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

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Originally Posted by astrono_me View Post
The small rear bench of the Ford Ecosport is a deal breaker for me. But going by the number of positive comments in favour of the Ecosport here, I am beginning to think I'm in the minority camp. As an average middle class Indian, I can't imagine paying ₹10 lakhs for a car that can't seat 5 people comfortably.
The rear bench is definitely narrower for a car that is as wide as Innova. But 3 Medium sized adults can sit comfortably in the Ecosport, the Brezza/Creta might offer a little more space but nothing significantly to boast about. If one that can really boast about space, it has to be the Duster.
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Old 16th March 2016, 12:35   #146
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

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Originally Posted by shankar.balan View Post
Why don't they give passenger seat height adjustment as well? It is such a help for smaller built people!

Very few cars offer this important feature. I don't know why these manufacturers consider this a luxury.
It will be good to have. Still, co-passenger is much less limited in choosing posture of his/her liking so lack of height adjuster should not bother much.

In the context of Ecosport, a few deficits of this nature do not really affect its competence on the road. Its early days, but few published reviews of Brezza overall don't place it better than Ecosport.

Last edited by rsm97 : 16th March 2016 at 12:36.
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Old 16th March 2016, 12:50   #147
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

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#3 - Average Factory Price of Ecosport - Cost to Ford for manufacturing 1 unit - 700,000 (this is just a guess - it can be anything). So, the profit to Ford on selling a single unit of Ecosport - 200,000 before price reduction and 140,00 after price reduction
There is around 24 % Excise Duty , 2 % CST to Dealer and 12,5 % Local Sales Tax , so Basic Billing price of Ecosport will be far less more like 6 Lac for something with ExShowroom of 9 Lac , ( 6 Lac + 24 % + 2 % + Transport + Dealer Margin + PDI + 12,5 % VAT ) accordingly to reduce Ex-Showroom price by 1,10 Lac their Basic price will reduce by Rs 50-60,000 only.

Last edited by Turbanator : 16th March 2016 at 12:52.
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Old 16th March 2016, 18:32   #148
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

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Originally Posted by jpcoolguy View Post
Thanks to the BHPian Karthik Chandra for this post in the Vitara Brezza thread -

http://www.team-bhp.com/forum/indian...ml#post3932349 (The Maruti Vitara Brezza @ Auto Expo 2016)

I tried to compare the no. of units of Ecosport, Ford has to sell to offset the reduction in prices (based on the below post in one of the sales thread).

http://www.team-bhp.com/forum/indian...ml#post3929040 (Top selling cars & their sales % contribution to the company)

Considered the last 12 months' (Mar '15 - Feb '16) average number of units of Ford Ecosport - taken from T-BHP sales threads.

Assumptions:
#1 - Median Ex-Showroom Price (Delhi) before price reduction - 900,000 (Source: Carwale.com)
#2 - Median Ex-Showroom Price (Delhi) after price reduction - 840,000 (Source: Carwale.com)
#3 - Average Factory Price of Ecosport - Cost to Ford for manufacturing 1 unit - 700,000 (this is just a guess - it can be anything). So, the profit to Ford on selling a single unit of Ecosport - 200,000 before price reduction and 140,00 after price reduction.

Attachment 1486113

1. Ford has to sell 235 more units on a monthly basis to achieve the same revenue generated by Ecosport (Last 12 months' average - 3295 units, Target # of units to achieve same revenue - 3530 units).

2. But, in order to fetch the same profit they have garnered as before, Ford has to sell 1412 more units monthly to achieve the same profit numbers (Target # of units - 4,707 units).

3. Selling close to 5K units consistently on a monthly basis will be a big challenge to Ford, considering they were not even able to maintain this level during their initial launch. Now, with the launch of Vitara Brezza, this is going to be an impossible task - since I think Vitara Brezza is going to be the run away leader of the segment even after accounting for Ecosport's price reduction.

Need to wait and watch the upcoming sales numbers to know whether Ford's move has brought them fruits or it has back-fired.
I don't think that ford wants to make some consistent profit, they're most probably looking to maintain their market share as once a brand takes a dive in India, it is pretty hard for it to recover.
Ford may be less rich for now but it makes a lot of sense in future, which is why I, as an ecospprt owner, am not mad at ford for the price reduction.

Last edited by Doge : 16th March 2016 at 18:33.
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Old 17th March 2016, 18:58   #149
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

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Originally Posted by Turbanator View Post
Congrats , from Pajero to EcoSport ? or is this for someone else in family. Can you share breakup of costs , I am also looking to buy one for my upcountry office.

Thanks

From Pajero to Land Rover Freelander to Duster to Audi Q3

Ecosport replaces the VW Vento Highline - bst part being it costed less than the Vento did in 2011

Costed 848900 (ex-showroom) + Zero Dep Insurance + 3rd yaear (optional) warranty + RTO / Registration + basic stuff like mudflaps, Mats etc.


Cheers
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Old 18th March 2016, 10:16   #150
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Default Re: The Brezza effect: Ford reduces EcoSport price by up to 1.12 lakhs

It must really hurt those guys who brought the Ford Ecosport after the Discounts dried up post Festive season to the point where the prices were reduced. I hope Ford makes up to them by offering freebies like free/discounted services/accessories. It will definitely help maintaining the love, respect and loyalty towards the brand.

There is no doubt that Ford Ecosport was always slightly overpriced.It should have always been closer to the 10L watermark.

Ecosport does score over Brezza overall as per the numerous reviews. However Brezza would have hit the numbers of Ecosport as the price differential was too significant to ignore.

Being an Ecosport owner, i would any day prefer the popularity of the car/brand over opposing the price cut .

Ford, you got this strategy right. Now hoping for something to push Figo/Aspire !!!
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