Verna Price Hike

adarsh76 · 12th January 2007, 09:43

Moderators, please delete one of my previous post which got repeated. Don't know exactly how it was repeated.

vivekkr_99 · 12th January 2007, 10:21

Quote:

Originally Posted by supremeBaleno

1. For a car that is supposed to be an upgraded version of the Accent, the price difference with the Accent was measly.

There is a definite improvement for Verna in performance and other aspects from Accent, and hence the price difference. Hyundai or as a matter of fact any other car manufacturer, is not there to price their products according to our liking.

Quote:

Originally Posted by supremeBaleno

2. Any new product is usually priced at a premium and when sales grow, they decrease the price a bit to attract more buyers. Here they launch it at supposedly low intro-prices and then hike the prices. And all this, while there are rumours of it not making a big impact in the market.

Some manufacturers are forced to decrease the initial price, because of lack of demand only. If there is more demand, they will increase the price only. I cant remember any car manufacturer reducing the prices solely because the demand was huge. And regarding the rumours you have mentioned, this is exactly how these rumours originate.

Quote:

Originally Posted by supremeBaleno

3. They seem to be playing it carefully by not stopping the Accent. Sort of like cautious thinking that what if verna does not make the bar. Then we will be left with neither this or that.

That may or may not be their strategy. There are common people (may not be the enthusiasts at team-bhp) who dont check the company's world-wide and region-wise strategies as long as they like their products and they get a good support.

CrAzY dRiVeR · 12th January 2007, 10:41

Quote:

Originally Posted by vivekkr_99

Some manufacturers are forced to decrease the initial price, because of lack of demand only. If there is more demand, they will increase the price only. I cant remember any car manufacturer reducing the prices solely because the demand was huge. And regarding the rumours you have mentioned, this is exactly how these rumours originate.

Not exactly...

Nowadays, cars are launched with introductory pricing... The main aim is to cause an initial demand for the car, which plays a good part in making the car a success...

These introductory prices will be upped a bit after the sales pick up...

The swift had introductory prices for a week, cause the demand was very huge... Verna had it for more time, till the company feels they should move on to regular prices...

rohitbagai · 13th January 2007, 02:35

Firstly,.everyone knew that the price will be revised soon as it was introductory price only and not a regular price. Secondly the marketing technique differs from company to company. A product like a car needs road presence initially to attract more buyers. Hyundai wanted it to happen but missed it because of production bottlenecks. Thirdly no manufacturer will dent its pockets to lower the price. It’s the costing per unit that decreases over the period of time due to economies of scale or may be lower input cost from vendors they are in a position to reduce price. In case of Verna more than 55% of its components are imported Hyundai will gradually shift to local vendors for the components and their target is to increase local content to 70% this year for Verna. At that time they may think of reducing price. Dealers etc. are those that offer discounts because they are individuals with huge capital invested in the inventories and they face the burnt of competition not only from other companies dealers but also from dealer of the same company. The revision is solely to give a fare share of margins that dealers agreed to forgo initially.

GTO · 15th January 2007, 11:49

Okay Guys, take a chill pill and stop the personal attacks. There is no need to get hot under the collar over the Verna. Both have made their points and I think its best to end the debate there.

Boom Shiva · 15th January 2007, 12:11

I hope Hyundai doesn't compromise on quality by trying to rush the production of Verna. Maruti seems to have done that with the Swift.

gunbir · 16th January 2007, 11:53

Quote:

Originally Posted by Boom Shiva

I hope Hyundai doesn't compromise on quality by trying to rush the production of Verna. Maruti seems to have done that with the Swift.

They wont. See the Santro as an example.

I for one cant wait for the Diesel Swift, not that I want one. I just wanna see what more possible creaks and rattles crop up with the addition of the vibrations from the diesel engine. Maruti is saving some serious money on plastics and damping.

adarsh76 · 16th January 2007, 21:18

Quote:

Originally Posted by gunbir

They wont. See the Santro as an example.

I for one cant wait for the Diesel Swift, not that I want one. I just wanna see what more possible creaks and rattles crop up with the addition of the vibrations from the diesel engine. Maruti is saving some serious money on plastics and damping.

I think what you said about Marutis are true. One senior mechanic at Popular Hyundai Cochin told me the same. He was working with a Maruti dealership for 13 years before joining the hyundai dealership. He said that Maruti makes good quality cars during the initial periods when a new car is launched. But later on that disappears.....He quoted example of Baleno. Some complaints like tappet sound, A/c problems etc. were not present in the earlier launches of Baleno.

Now it seems Swift also faces the same issue.

12th January 2007, 09:43	#46
adarsh76 BHPian Join Date: Apr 2006 Location: Trivandrum Posts: 661 Thanked: 231 Times	Moderators, please delete one of my previous post which got repeated. Don't know exactly how it was repeated.
	() Thanks

13th January 2007, 02:35	#49
rohitbagai BHPian Join Date: Aug 2006 Location: New Delhi Posts: 410 Thanked: 259 Times	Firstly,.everyone knew that the price will be revised soon as it was introductory price only and not a regular price. Secondly the marketing technique differs from company to company. A product like a car needs road presence initially to attract more buyers. Hyundai wanted it to happen but missed it because of production bottlenecks. Thirdly no manufacturer will dent its pockets to lower the price. It’s the costing per unit that decreases over the period of time due to economies of scale or may be lower input cost from vendors they are in a position to reduce price. In case of Verna more than 55% of its components are imported Hyundai will gradually shift to local vendors for the components and their target is to increase local content to 70% this year for Verna. At that time they may think of reducing price. Dealers etc. are those that offer discounts because they are individuals with huge capital invested in the inventories and they face the burnt of competition not only from other companies dealers but also from dealer of the same company. The revision is solely to give a fare share of margins that dealers agreed to forgo initially.
	() Thanks

15th January 2007, 11:49	#50
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,499 Thanked: 300,309 Times View My Garage	Okay Guys, take a chill pill and stop the personal attacks. There is no need to get hot under the collar over the Verna. Both have made their points and I think its best to end the debate there.
	() Thanks

15th January 2007, 12:11	#51
Boom Shiva BANNED Join Date: Feb 2005 Location: Mumbai Posts: 1,055 Thanked: 18 Times	I hope Hyundai doesn't compromise on quality by trying to rush the production of Verna. Maruti seems to have done that with the Swift.
	() Thanks