Team-BHP > What Car? > Hatchbacks


Closed Thread
 
Thread Tools Search this Thread
Old 19th March 2018, 16:05   #1
BHPian
 
navdeep.rana's Avatar
 
Join Date: Mar 2017
Location: Mohali
Posts: 119
Thanked: 244 Times
Default Why does a Swift cost the same as the VW Polo or an i20?

Why does a Swift cost the same as the VW Polo or an i20?-pjimage-1.jpg

I am talking about the previous model of the Swift (2017 variant of every car in comparison) here, not the latest one. Although both costs almost the same, I want to know why Swift (as a product that you get) costs so much when it doesn't comes close to its rivals (Polo 1.5 TDI & Elite i20) in terms of driving factor (Polo wins), build quality (Polo wins), space (i20 wins), features (i20 wins). I have driven Polo 1.5 TDI for more than 2 years, Elite i20 for more than a year and Swift VDI for around 500 kms and never understood the pricing criteria for Swift.

It feels more of Grand i10's league (although I would suggest Grand i10 over Swift) and should have come with similar price range. Then I would have totally understood and loved the car. But somehow, the segment in which it is placed and the way it is priced, doesn't makes any sense and yet it sells so much. I could be missing something here so would love to hear your views on this.

What specific part, or special feature is Maruti putting in this car that makes it cost so much that its price goes up all the way close to a Million Rupees on Road?

Keeping out resale value and maintenance cost, I want to know that as a PRODUCT, what Swift has to offer that other cars of similar price as a PRODUCT don't? What are the USP's of the car that makes you fall in love with it?

Why are people so crazy about it? Is it just because of the resale value & maintenance or the car has something else also to offer? The only reason I never loved this car is because it costs the same as it rivals, yet it has shitty build quality, no boot space, no space on rear seat and cheap interior plastic quality a small engine and lacks an exclusive factor about it. Why has Maruti priced it so expensively?

Last edited by navdeep.rana : 19th March 2018 at 16:17.
navdeep.rana is offline   (2) Thanks
Old 19th March 2018, 16:23   #2
BHPian
 
Join Date: Sep 2015
Location: Gurgaon
Posts: 665
Thanked: 1,859 Times
Default re: Why does a Swift cost the same as the VW Polo or an i20?

Although I agree to what you said, this is a "rant-bait" thread - it will only ensue arguments and counter-arguements from fans/haters. Cars sell for a no of reasons, not all of them are rational.

What makes Suzuki price Ignis the way they have?

Why does Renault sell the "antique" duster at the price it sells currently (even after recent price-cut)?

Even polo, the decade old car model, still is on sale (with not even a proper facelift). Why?

Reasons may be many, it all boils down to one answer - because it still sells (and in pretty good volumes).

One can sell a 3 legged donkey in India by pasting "Innova" batch over it's forehead.

And if it sells, why not earn some easy money.
Nav-i-gator is offline   (15) Thanks
Old 19th March 2018, 16:39   #3
BHPian
 
Join Date: Feb 2018
Location: Bangalore/Noida
Posts: 38
Thanked: 77 Times
Default re: Why does a Swift cost the same as the VW Polo or an i20?

A very valid and a simple enough question, isn't it ?

Only if the answer was that simple, the other car (competition) manufacturers would have cracked the code and would be matching the same volumes.

To me, It is an amalgamation of Perception, Brand Value, Capability, Reliability, Functionality, A.S.S & Re-sale value. It is not how the product rates in each department, it is in fact the overall package that the 'average' car buyer bases his decision on.
sandman_30 is offline   (2) Thanks
Old 19th March 2018, 16:47   #4
Senior - BHPian
 
Join Date: May 2013
Location: Mumbai
Posts: 1,179
Thanked: 3,547 Times
Default re: Why does a Swift cost the same as the VW Polo or an i20?

Let me give you one reason. I bought my 2007 Swift 3 years back for 2.6. Got it evaluated yesterday, got a ready dealer quote for 2.0. 3 years, 60 K depreciation.

Add to that, I can cross a 20 ft road and get the car serviced at a Authorized OEM workshop.

Also, for a two seat user, the space is more than enough. I have a Ampli + Woofer in the boot but whenever I have luggage, we put the rear seats down.

I hate the safety quotient though. No airbags, no ABS. I drive very carefully on highways at modest speeds because of this. But I make one long trip per year.

Last edited by 2000rpm : 19th March 2018 at 16:48.
2000rpm is offline   (5) Thanks
Old 19th March 2018, 17:03   #5
Senior - BHPian
 
Join Date: May 2010
Location: Bangalore
Posts: 1,080
Thanked: 3,942 Times
Default re: Why does a Swift cost the same as the VW Polo or an i20?

Well I'm not a Maruti or a Swift fan. But I'm booking the new Swift.

I'll agree that the Polo is a well built car and the driving experience is better. But I have barely seen any Volkswagen service centers outside cities. And even in the cities, service centers are few and far between. Ease of service and availability of spares is a big, big part of car ownership, and hence VW is out of the equation here for me. Add to that, the 'wonderful', 'amazing' and 'legendary' VW attitude to their Skoda India customers (more than enough horror stories here on TBHP) is enough to make me stay away from any product, however well made, that VW have in India.

Hyundai is certainly a better value proposition than Maruti when you consider the fully loaded and certainly better designed cars for the same initial price. Servicing is also ok, not as easy and widespread as Maruti's, but good enough. But every Hyundai owner I personally know has complained about the rising service costs with each year, the rapid degradation in quality over years, and the high cost of spares.

Therefore, by default, Maruti it is.

PS: I have to add that boot space and rear seat space are not issues for me when choosing a car as 90% of the time the car will be single person driven, and 99% of the time it will be a max of 2 people in the car with minimal luggage.

Last edited by am1m : 19th March 2018 at 17:13.
am1m is offline   (2) Thanks
Old 19th March 2018, 17:10   #6
BHPian
 
navdeep.rana's Avatar
 
Join Date: Mar 2017
Location: Mohali
Posts: 119
Thanked: 244 Times
Default re: Why does a Swift cost the same as the VW Polo or an i20?

Although everyone has given a good reply, but I think my question got a little misunderstood. I wanted to know apart from service & maintenance perspective because you are paying a Million rupee for a car so it better be worth it. Let me rephrase my question.

Lets suppose all the cars comes without any badge and are offered under the same roof. Now without the badge, you visit the single showroom where all the three cars in question are placed (without any badge) with similar price. Would you still pick a car with smaller engine and poor build over what other cars has to offer in same price? Or you would now choose a more VFM car with more features, better build quality, bigger & powerful engine because again, you would be paying the same money for any car you choose now?

Last edited by navdeep.rana : 19th March 2018 at 17:12.
navdeep.rana is offline   (2) Thanks
Old 19th March 2018, 17:17   #7
BANNED
 
Join Date: Nov 2006
Location: Bengaluru
Posts: 4,362
Thanked: 2,224 Times
Infractions: 0/2 (8)
Default re: Why does a Swift cost the same as the VW Polo or an i20?

The best thing would be for i20 and Polo to sell as Maruti products and see. I am sure they will sell in good number
Its sum of things not just the one thing about the car that gives a hassle free ownership experience. In the segment thats what matters.
srishiva is offline   (1) Thanks
Old 19th March 2018, 17:18   #8
Senior - BHPian
 
Join Date: May 2010
Location: Bangalore
Posts: 1,080
Thanked: 3,942 Times
Default re: Why does a Swift cost the same as the VW Polo or an i20?

Quote:
Originally Posted by navdeep.rana View Post
Would you still pick a car with smaller engine and poor build over what other cars has to offer in same price? Or you would now choose a more VFM car with more features, better build quality, bigger & powerful engine
Naturally, all else being equal, I would select the car with better build quality.

But how can you discount the maintenance factor when buying a car? Not possible. What is the point of a well-built car if it remains in the garage for longer because of a lack of spares, or if I have to drive across the city each time I want something fixed, or if the price for maintenance is higher every time, or if the dealer treats you badly at each visit?

I know this is not the simple answer you are looking for, but maintenance is an integral part of a car purchase.
am1m is offline   (1) Thanks
Old 19th March 2018, 17:19   #9
BHPian
 
navdeep.rana's Avatar
 
Join Date: Mar 2017
Location: Mohali
Posts: 119
Thanked: 244 Times
Default

Quote:
Originally Posted by am1m View Post
Well I'm not a Maruti or a Swift fan. But I'm booking the new Swift.

So if I am not wrong, you would choose a car from the ASS and maintenance perspective and not for what the car in itself actually is or has to offer against the competition? No other reason for you to book Swift? Also you are purchasing the new Swift, which is much better, so this question is not valid for you anymore.

I personally like the new Swift and is much better over the previous one. But somehow, Maruti has still managed to compromise its build in comparison to what Suzuki is offering in Euro market.

Quote:
Originally Posted by am1m View Post
Naturally, all else being equal, I would select the car with better build quality.
Maintenance of course is an integral part, but I want to know why Maruti would price it close to a million rupee just like Polo & i20 without offering what these cars offer? How come the production cost is justified here by Maruti?

Last edited by ampere : 19th March 2018 at 17:59. Reason: back to back posts merged; trimmed quoted post
navdeep.rana is offline  
Old 19th March 2018, 17:23   #10
Senior - BHPian
 
Join Date: May 2010
Location: Bangalore
Posts: 1,080
Thanked: 3,942 Times
Default re: Why does a Swift cost the same as the VW Polo or an i20?

Quote:
Originally Posted by navdeep.rana View Post
So if I am not wrong, you would choose a car from the ASS and maintenance perspective and not for what the car in itself actually is or has to offer against the competition? No other reason for you to book Swift?
Well, let's say the quantum of the quality, driving experience and features that the Swift lacks when compared to the other two is not big enough to offset the ease of maintenance (and attendant peace of mind) that it offers. If, say the Swift did not have airbags, then yes that would be a reason to go to the competition. And I mean the old Swift as well, I would have bought the the top-end version just for the airbags, and say if even the top-end of the old Swift did not offer airbags, then yes I would have gone the Hyundai way.

Last edited by am1m : 19th March 2018 at 17:27.
am1m is offline  
Old 19th March 2018, 17:26   #11
Team-BHP Support
 
CrAzY dRiVeR's Avatar
 
Join Date: Jun 2006
Location: Bengaluru
Posts: 14,740
Thanked: 51,031 Times
Default re: Why does a Swift cost the same as the VW Polo or an i20?

Quote:
Originally Posted by navdeep.rana View Post
Keeping out resale value and maintenance cost, I want to know that as a PRODUCT, what Swift has to offer that other cars of similar price as a PRODUCT don't?

Why has Maruti priced it so expensively?
Swift doesn't cost as much as Polo and i20. It can sell at prices similar to Polo and i20.

Why has Maruti priced it so high? Because there are people still waiting in queues to buy it. As simple as that.

We can argue as much as our time permits, but Maruti would be laughing away to the bank post getting better than ever record sales for the Swift.

PS - Why does Innova sell at prices significantly more than XUV and Hexa? City sell at prices significantly more than Ciaz and Verna? Its all about building a brand over time and slowly reaping the profits.

Last edited by CrAzY dRiVeR : 19th March 2018 at 17:29.
CrAzY dRiVeR is offline   (12) Thanks
Old 19th March 2018, 17:27   #12
BHPian
 
navdeep.rana's Avatar
 
Join Date: Mar 2017
Location: Mohali
Posts: 119
Thanked: 244 Times
Default re: Why does a Swift cost the same as the VW Polo or an i20?

Quote:
Originally Posted by am1m View Post
Well, let's say the quantum of the quality, driving experience and features that the Swift lacks when compared to the other two is not big enough to offset the ease of maintenance (and attendant peace of mind) that it offers. If, say the Swift did not have airbags, then yes that would be a reason to go to the competition. And I mean the old Swift as well, I would have bought the the top-end version just for the airbags, and say even of the top-end did not have airbags, then I would have gone the Hyundai way.
I still agree with you, but as you have said yourself, Swift lacks some features and build quality compared to competition, then why does it costs the same?

Last edited by navdeep.rana : 19th March 2018 at 17:31.
navdeep.rana is offline  
Old 19th March 2018, 17:30   #13
Senior - BHPian
 
arvind71181's Avatar
 
Join Date: May 2010
Location: TN-14
Posts: 1,036
Thanked: 1,410 Times
Default re: Why does a Swift cost the same as the VW Polo or an i20?

Quote:
Originally Posted by navdeep.rana View Post
Maintenance of course is an integral part, but I want to know why Maruti would price it close to a million rupee just like Polo & i20 without offering what these cars offer? How come the production cost is justified here by Maruti?
They need not justify their production cost right. As long as there is a demand, they will milk the product and keep getting away with it. Same as Innova, is it VFM? Not at least to me. But it sells like hot cakes.

Its may be to do with the fact that when the Swift arrived in the market, there was no competition really, apart from the Getz and hence it was able to monopolize the market. So the VW and the i20 could not grasp much of its market, even 3 generations down the line. This has happened even though the price of the Swift has increased. Maybe the early mover advantage, coupled with the ease of maintenance as am1m says?
arvind71181 is offline   (2) Thanks
Old 19th March 2018, 17:30   #14
BHPian
 
navdeep.rana's Avatar
 
Join Date: Mar 2017
Location: Mohali
Posts: 119
Thanked: 244 Times
Default

Quote:
Originally Posted by CrAzY dRiVeR View Post
Swift doesn't cost as much as Polo and i20. It can sell at prices similar to Polo and i20.
Exaaaaactly! This is why! It doesn't cost as much as competition, the only reason for its price is because it can still sell at that price. Maruti can still increase the price by couple of thousand rupee without adding any value to the car and people will still buy it.

Quote:
Originally Posted by arvind71181 View Post
They need not justify their production cost right. As long as there is a demand, they will milk the product and keep getting away with it. Same as Innova, is it VFM? Not at least to me. But it sells like hot cakes.
So it means that although Maruti offers ease of Maintenance later down the road, they make you shed more money in advance (around 1-1.5 lakh) when you are buying the car just because it is easy to maintain. If that makes any sense? Its like paying 1.5 lakh extra for just that guarantee/ insurance of easy maintenance in the future.


Mod Note: Please avoid making back to back posts

Last edited by ampere : 19th March 2018 at 18:00. Reason: back to back posts merged
navdeep.rana is offline   (1) Thanks
Old 19th March 2018, 17:37   #15
BHPian
 
The Brutailer's Avatar
 
Join Date: Apr 2016
Location: -
Posts: 553
Thanked: 1,407 Times
Default re: Why does a Swift cost the same as the VW Polo or an i20?

Umm, mainly 2 reasons :

1. Swift is a strong brand; more than the car itself. Like Innova. Strong brand means greater control over the pricing.

2. Manufactured by Maruti. There, half the work is done.

Also, I don’t know about the current generation but when it was launched, it was the sportiest car in it’s class. Even now in it’s current avatar, I think that it looks smashing..much better than it’s competition.

Wait for the Swift Sport. Performance will be taken care of (though I hope they don’t go the Baleno RS way).

Also I don’t think either the i20 or the Polo are worth their price tags. Like how (IMHO), I feel Creta demands D-segment pricing when it’s built as a C-segment car. Basically, the brand value dictates the pricing.

Which is why I also think, the topic on this thread isn’t worth discussing much.

Last edited by The Brutailer : 19th March 2018 at 17:39.
The Brutailer is offline   (3) Thanks
Closed Thread

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright 2000 - 2021, Team-BHP.com
Proudly powered by E2E Networks