[wheelguy]

“We have an action plan in place to overcome the price perception challenge. However, we would not be able to share our exact plan. But we are sure, we will see the results", added Porsche India Director Pavan Shetty.

NEW DELHI: Indian luxury car buyers perceive Porsche expensive and beyond their reach price-wise, when it comes to purchasing of mid-range luxury cars, Dr. Manfred Bräunl CEO, Porsche Middle East, and Africa FZE told ETAuto in an exclusive interaction.

He said, “We did a customer behaviour survey online which revealed that people don’t consider Porsche in their car search process because they think it is expensive. Porsche as a brand doesn’t do price advertising, but to overcome the challenge of perception, we will have to do price advertising here in India."

Porsche launched Macan at a price of Rs 69.9 lakh in July this year which competes against the likes of Mercedes GLE, BMW X5, Audi Q7, and Land Rover Discovery.

“We have to put a stronger focus on communication with our team. Also, we need to be present where customers are searching for competition cars and make a point” said Manfred Bräunl.

In terms of sales and retail expansion, Porsche is bullish about the Indian market. Despite the current challenges faced by the economy, India will be a focus market for the next few years for Porsche. "With growing middle class, I don't have doubt in my mind, with a strong product we have much higher potential", reiterated Manfred Bräunl.

“We are studying the markets. We are not present in two major states in the South and upwards in the North. We are understanding what direction to take. We have to look at a promising market in the long term solution. But it is too early to talk..” said Pavan Shetty.

The company plans to launch two products in the next calendar year. Taycan Electric car and the Anniversary edition of Panamera to keep the product portfolio refreshed. In terms of sales, the luxury car manufacturer sold 350 cars last year. The company sees stable growth this year.

Though in no way a luxury car buyer, even I am of the same opinion/perception that Porsches are costlier than Benz, BMW, and Audi trio, especially their customization options are quite costlier compared to others. That aside, I don't see them as direct rival of the luxury trio.

Source: ET Auto

[BZ25]

This is not only in India, but elsewhere too. Porsches are quite a bit more expensive than their rivals. A Q5 sized Macan is priced at the level of a Mercedes GLS or BMW X5, which are way bigger and practical. However the trade-off benefits when you drive one: they are usually the best to drive in their class. BMWs aren't the Ultimate Driving Machine anymore, they are way more comfort oriented than before.

Originally Posted by wheelguy

Though in no way a luxury car buyer, even I am of the same opinion/perception that Porsches are costlier than Benz, BMW, and Audi trio, especially their customization options are quite costlier compared to others. That aside, I don't see them as direct rival of the luxury trio.

Well said sir. You can't actually compare a Porsche Panamera with a Mercedes S-Class, even though they target the same gentlemen with deep pockets.
The latter is pure luxury, but offers a caressing driving experience, while the former not as practical, but is a hoot to drive.

[ram87pune]

Porsches are slightly less value for money than the german trio especially in India where they command a premium over them. I say slightly less because even though they come with less standard kit as compared to the competition, they have far and I mean far better cabin ergonomics and driving dynamics than the competition. The level of build quality and luxury is also second to none.

The problem is Porsche hasn't launched cheaper variants of the new Cayenne and the Panamera here in India yet so they are perceived as abnormally expensive. Also you have to pay through your nose while selecting some silly options which you expect to come as standard kit at this price point.

But all is forgiven the moment you turn the key or push the Start/Stop button. The grin that is plastered on your face every time you drive one of these beauties is incomparable. For many enthusiasts around the world that is reason enough to plonk their money on the steeds from Stuttgart.

[Turbanator]

If you try to pitch your lower basic variants against loaded variants of other Luxury brands, this is going to happen. Macan does not compete with X5 or GLE anywhere. When you add some of the basic things like a rearview camera or leather seats or an adjustable seat, Macan costs more than a fully loaded X5 by a great margin.

But I am glad that at least someone is actually thinking from a customers perspective. An easier way could have been to check with existing owners of Luxury cars or the guys who enquired with Porsche and went elsewhere the reasons for not Buying Porsche.

After VW/ Porsche merger a lot of their products are diluted to a large extent. One look at a 911 cabin and GT Golf 2020 is enough. The Quality of Basic interiors that we get here on most Porsche's is really bad (plasticky), if you look at 992 standard dashboard, it will be far worse than cars costing 40-50 Lac.

Then comes some of the lowest number of dealerships. They have what 4-5 across India, this does not give any confidence when you are buying something for your regular use like a Cayenne.

BMW & Mercedes have been successful in getting better prices from HQ and manage some numbers even on CBU like G-Wagon or M cars and far competitive when they have CKD plans like some of the initial lots of S Class or recently X7 where they had priced it about same as CKD.

My suggestions to Porsche - Don't get overly greedy, the guys who Must have a Porsche in their Garage are dwindling, realise the market challenges & come up with India specific packages instead of item vice loadings that make owning one with some of the basic things one has got used to from other manufacturers. As an example, if I want ventilated seats on a Cayenne, look at what all other extras we have to add mandatorily. Though, I appreciate the fact that they have given us most of the options that are available to global customers but at a very high price. They can probably package these to something better.

[GTO]

They most definitely are overpriced, due to 3 reasons:

- The brand's position itself.

- Their cars are CBUs.

- The options are eye-wateringly expensive.

From the article:

Porsche as a brand doesn’t do price advertising, but to overcome the challenge of perception, we will have to do price advertising here in India

The man clearly hasn't visited USA, one of Porsche's largest markets. Just a small sample of the price promotions there


Source


Source


Source

"With growing middle class, I don't have doubt in my mind, with a strong product we have much higher potential", reiterated Manfred Bräunl.

Man clearly doesn't have a clue about India. India's middle class buys Marutis & Honda Activas, not Porsches. It's only the uber rich who can afford even the cheapest Porsche

[saket77]

Originally Posted by GTO

The man clearly hasn't visited USA, one of Porsche's largest markets. Just a small sample of the price promotions there

Man clearly doesn't have a clue about India. India's middle class buys Marutis & Honda Activas, not Porsches. It's only the uber rich who can afford even the cheapest Porsche

Your post had me into splits!

Feel like Porsche is actually trying to ruffle a few feathers of ego of the uber rich you are talking about by bringing in the price equation; so as the rich can satisfy that ego by buying a Porsche. Some sort of marketing stunt I think.

[jailbird_fynix]

This report: Indian luxury car buyers think Porsche is beyond their reach price-wise.

Another Bloomberg report: Porsche Bets Rich Indians Will Pay to Show Off Electric Cars

Porsche plans to start selling its electric Taycan model in India next year, in a bet that ultra-rich Indians are willing to splash out as much as $370,000 on an electric car to boost their street cred

Local duties in India make imported luxury cars about 2.5 times more expensive than what they cost in Europe -- a reason cited by Elon Musk for ignoring the market so far -- but that’s no deterrent for prospective buyers, accordion to Pavan Shetty, director at Porsche India.

"That is Elon Musk’s problem,” Shetty said. “We are not a blind volume chaser. You can’t change the laws of the land. The question is do you want to do business or do you not want to do business. I want to do business.”

[Jeroen]

With growing middle class, I don't have doubt in my mind, with a strong product we have much higher potential", reiterated Manfred Bräunl

This guy must be living in a different universe from us. Porsche is not a middle class type of car. A Ford Focus is middle class type of car.

I reckon that in any society Porsche owner are in the 2-3% top earners.

E.g. in the Netherlands less than 1,3% of the working Dutch earns above Euro 100.000 per annum. People owning Porsches tend to have considerable higher incomes.

Jeroen

[libranof1987]

Embarrassing statement/perspective from the leader of a revered global brand. I wonder who signed off on a market survey that got them these inferences.

Although his thought process is very incorrect here; I think there is a mismatch between what they think the "Indian luxury car buyer" wants and a Porsche's value proposition. The typical Indian uber rich want a) a Maybach or 7 series and be chauffeur-driven in style or b) the likes of a Lamborghini or Ferrari and make a massive statement about having arrived and having taste. Porsche doesn't make a resounding statement in either.

And yes, Porsche are within the reach of less than 0.01% Indians.

[trek]

Originally Posted by libranof1987

Embarrassing statement/perspective from the leader of a revered global brand. I wonder who signed off on a market survey that got them these inferences.

It's not this guy alone, I have observed a lot of executives at the higher ranks in other sectors too, who live in a bubble, completely oblivious to the ground reality and there are just a select few leaders who really know the pulse of their consumers.

[ksameer1234]

That Porsche CEO banks on Indian middle class to propel their car sales is such a nice feeling for us, even for a fleeting moment!!

I agree with others here that Porsche has little to offer those in India who have money to buy cars in that price bracket. Unless of course someone has money and is petrol-head enough to desire a Porsche. The other day I spotted a yellow Porsche and told wife that see there's a Beetle R from performance division of Volkswagen!

Given that Porsche sells about 80,000 cars in China, India would be on their radar as next target. But selling 300-odd cars in a year, where do they go from here?

[Nithesh_M]

I spat my drink when I read "middle class". Good thing I didn't read this on my monitor. Just shows you how people in the most decisive positions of a car company can be clueless about their own market targets.

Not going to lie, as a middle class person myself in a fairly decent job position right now I did skirt the idea all last year of jumping on the attractive BMW X1 or the 3 series finance options.
But if I would have to pay 35k a month to own one for X years at a time when job security is at a high risk due to slowdown, plus adding maintenance costs and insurance on top of that would mean I'd barely be able to run a month's living expenses on my own.

And this is an entry level class this side of 40 lakhs I'm talking about where Porsche has nothing to offer. The new BMW 3 series has priced itself out of my reach but that's a story for another day.

[Guru_GPS]

Originally Posted by BZ25

This is not only in India, but elsewhere too. Porsches are quite a bit more expensive than their rivals. A Q5 sized Macan is priced at the level of a Mercedes GLS or BMW X5, which are way bigger and practical. However the trade-off benefits when you drive one: they are usually the best to drive in their class. BMWs aren't the Ultimate Driving Machine anymore, they are way more comfort oriented than before

Originally Posted by GTO

They most definitely are overpriced, due to 3 reasons:

- The brand's position itself.

- Their cars are CBUs.

- The options are eye-wateringly expensive...

Originally Posted by BZ25

This is not only in India, but elsewhere too. Porsches are quite a bit more expensive than their rivals. A Q5 sized Macan is priced at the level of a Mercedes GLS or BMW X5, which are way bigger and practical. However the trade-off benefits when you drive one: they are usually the best to drive in their class. BMWs aren't the Ultimate Driving Machine anymore, they are way more comfort oriented than before.


Well said sir. You can't actually compare a Porsche Panamera with a Mercedes S-Class, even though they target the same gentlemen with deep pockets.
The latter is pure luxury, but offers a caressing driving experience, while the former not as practical, but is a hoot to drive.

I am neither capable of buying one, nor fascinated towards such expensive brands. Voted yes and based solely on price comparison as already stated in the posts above.

[kiku007]

DThis is a joke.

How does a Macan compete with the BMW X5 or the Merc GLE or the Audi Q7?

The new X5 is intimidatingly huge that I sometimes mistake it for a X7.

Porsche Cayenne's cousin the Audi Q7 has more seats and wheelbase than the Cayenne!

VAG's lack of understanding of India is obvious.

[DrCar]

Now I know why Nano was such a failure. If a 'middle class' person can dream of buying a Porsche, then Nano was destined for failure. I think Tata got it wrong with their strategy.

On a serious note, I too feel that Porsche's are expensive when I look at one. May be they are not that common on roads which gives me that feeling.

I still feel Porsche is able to stand out from other manufacturers in terms of looks and perception.
Mercedes is the only real competition for them as they have cars which have different looks across models. BMW and Audi have lost the plot in the looks department altogether. Porsche should target Mercedes and manage their product portfolio accordingly to gain more traction.