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Old 6th February 2021, 22:49   #16
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Re: Strategies & tricks that automakers use to survive in India

Till recently, there was this MNC car company that not only survived but thrived (made profits) by selling engines to other manufacturers. Sadly, BS6 emission norms killed that business.

Last edited by SmartCat : 7th February 2021 at 07:52.
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Old 7th February 2021, 00:26   #17
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Re: Strategies & tricks that automakers use to survive in India

I would like to add Choice as a strategy.

From a Maruti showroom you can pick up a different model car for small increments in budget, imagine conversations like - it's okay you go for the Swift instead of WagonR Son, I'll pay the difference.

Quote:
Originally Posted by Eshan Joshi View Post
Due to the ridiculous sub 4 meter tax rule , we have these weird butch hatches that are called "SUVs" and hatchbacks with a boot that are called "sedans". These fly off the shelves like hell. Honestly I would just buy a hatchback. But regular people fall for these .
There is a constitutional duty towards providing opportunities of personal mobility to non rich indians also , Maruti is one such venture. Sub4M is another and they both have enhanced the market exponentially. The rule does not forbid you from selling a Rolls-Royce, it just makes investing in smaller vehicles attractive for manufacturers. Currently we have ~ 40 models to choose from in the affordable segment alone, something other countries do not have. Imagine the cheapest car you can buy at 10L otherwise, not ideal for India.

Quote:
Originally Posted by sodapop View Post
It's interesting how the Safari has already been labelled a success before even the prices have been revealed!
With enough social media presence such things can happen. You mah have seen on another thread many are suggesting an unsuspecting victim to buy an SUV from Skoda that no-one has seen yet, saying that it will meet all the requirements.
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Old 8th February 2021, 10:17   #18
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Re: Strategies & tricks that automakers use to survive in India

# Blatently misleading customers
Examples:
1. Renault Captur vs Kaptur. https://www.team-bhp.com/forum/india...-customer.html (The Renault Captur's new ad is ethically wrong & deceiving! Blatantly fooling the Indian customer)

2. Maruti's "calculate kiya kya" to prove diesel engines aren't cost effective.
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Old 8th February 2021, 12:19   #19
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Re: Strategies & tricks that automakers use to survive in India

A really common strategy which I can’t believe I missed ——

The Base Variant

Having a base variant with virtually no equipment as an option makes you wonder who in their right mind would buy it.

Quote:
A base variant allows the automaker to price a car very, very attractively. And it’s this price that pulls customers to car showrooms. Once the customer enters the dealership, it’s up to to sales staff of the dealer to convert this walk-in, into a sale. Upselling is easy for a good car salesman. However, getting the customer to the showroom isn’t. This is where the carrot, read base variant, is dangled attractively.
Source

Moreover, base variants are also sold as ‘Taxi’ cars to aggregators.

Just think of it. The Magnite is priced at a amazing price of ₹ 4 99 000. But nobody would buy these variants, they would go for the CVTs in the top end or even any other higher variant for that matter, willing to pay up excess of a million rupees, but it is the 0.5 million rupee sticker price that brings the customer to the Nissan showroom.

This ↓ is what you get at 0.5 million INR
Strategies & tricks that automakers use to survive in India-381dcb8a486149c19e6db125cc4316e9.jpeg
Source: manufacturingmirror.com

Not this ↓
Strategies & tricks that automakers use to survive in India-nissan_magnite_ht_auto_4_1605871709305_1606881869221.jpg
Source: HT AUTO

Last edited by Rudra Sen : 9th February 2021 at 10:28. Reason: edited
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Old 8th February 2021, 12:28   #20
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Re: Strategies & tricks that automakers use to survive in India

Quote:
Originally Posted by EightSix View Post
This ↓ is what you get at 5 million INR
Attachment 2119565
Not bad at all compared to competition. Black colour to rims will enhance looks to it

Last edited by KPR : 8th February 2021 at 12:30.
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Old 8th February 2021, 13:05   #21
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Re: Strategies & tricks that automakers use to survive in India

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Originally Posted by pavi View Post
You missed the biggest trick, which has been successful throughout all these years "Kitna deti hain". Maruti's advertisements were based on it for a long time, and the effects are still there among people. Even at this age, I hear comments "but it's Maruti which gives the most higher fuel efficiency". But the postive side of this is, most of the times they delivered what they advertised, even though a part of it is due to their cars being light.
If ‘kitna deti hai’ is a trick, then so is Tata’s 5 ⭐️ safety campaign.
Thanks to it, I’ve recently seen a strong opinion among people that 5 star safety is ‘must’ on every car and if you are driving anything lower than 4 star, then you are doomed to die.
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Old 8th February 2021, 13:22   #22
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Re: Strategies & tricks that automakers use to survive in India

This is a trick that lures people to the showrooms !

List out and highlight all the features available only in the top spec trim, call out the starting price of the lowest trim !
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Old 8th February 2021, 14:48   #23
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Re: Strategies & tricks that automakers use to survive in India

Actually, I would prefer if companies provided a high-performance low-features variant as an option. So the most powerful engine + gearbox combo, with all other creature comforts removed. (Kind of like what VW did with the Polo GT). Comfort features can be accommodated with aftermarket parts and accessories. That way prices are more reasonable, and people can customize how they want. May not get the fit and finish of factory, but at least you have more freedom + performance.
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Old 8th February 2021, 19:32   #24
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Re: Strategies & tricks that automakers use to survive in India

No doubt these tricks work. I clearly recall when my neighbour bought Kwid Climber and told me that it can go over rocks as shown in ad and that I shouldnt have bought more expensive Duster.
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Old 8th February 2021, 19:34   #25
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Re: Strategies & tricks that automakers use to survive in India

Quote:
Originally Posted by NDK286 View Post
Actually, I would prefer if companies provided a high-performance low-features variant as an option. So the most powerful engine + gearbox combo, with all other creature comforts removed. (Kind of like what VW did with the Polo GT). Comfort features can be accommodated with aftermarket parts and accessories. That way prices are more reasonable, and people can customize how they want. May not get the fit and finish of factory, but at least you have more freedom + performance.
This is something that goes against the market trends. It's an open secret that it's the top variants that earn carmakers the most money. Base variants are only present to lower the "starting price". Many are even just present on the paper but never actually get made before being discontinued in few months from launch.


Secondly, it's been proven many times that indians would rather have that 10 inch touchscreen and sunroof over 40 more horsepower or a stiffer suspension setup so whatever cars have come have not been recieved well. Case in point, the Kia Seltos GTK variant. It was exactly what you have said that is, bare minimum features but the kick-ass turbo petrol+MT setup. But it well and truly bombed and was removed from the lineup few months later due to extremely low demand.

And I don't understand your comparison with the Polo GT twins. They were never based on the base model but infact the highline trim and came loaded with features as far as Polos went.
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Old 9th February 2021, 07:34   #26
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Re: Strategies & tricks that automakers use to survive in India

Quote:
Originally Posted by Aniket Verma View Post
Indian automobile makers have mastered this cost effective strategy to prolong the shelf life of their obsolete models.

Case in Point:

1) Maruti: with their annual limited editions
2) Mahindra: Sports edition of XUV 500
3) Evergreening of Splendor: Splendor, Splendor +, Splendor Pro, i-Smart

By foreign brands

4) Duster Adventure edition
5) Creta Anniversary edition
6) Honda City 10th anniversary edition

Though we had some honest attempts at special editions too:

1) Eco Sport - Platinum Edition
2) Liva TRD edition
3) Jeep Bedrock edition
How could you forget the Polo
Polo special edition
IPL edition
Anniversary edition
Limited edition
World cup edition
Limited special edition
So many that I have even lost count
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Old 9th February 2021, 08:56   #27
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Re: Strategies & tricks that automakers use to survive in India

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Originally Posted by sodapop View Post
It's interesting how the Safari has already been labelled a success before even the prices have been revealed!





Imo they aren't really doing anything wrong because they own the badge now. They can do whatever the want with it. And as far as hiding "Chinese" ownership is concerned, be aware that if you're criticizing the Chinese for this crime, Mini being marketed as British and not German, JLR marketed as British and not indian, Rolls Royce being marketed as English and not German are all in the same boat. So why discriminate on the basis of country of origin? When these corporate buy other brands, they also buy the goodwill associated with the tag
It is perfectly legal since they own the brand. But Mini and JLR originated as British brands, JLR is even manufactured in the same factories it's just the owner is an Indian now.

Hector was never a MG car they are simply using a brand name, that is what they did with Chevrolet brand in India by launching UVA Sail etc.

But the Success of Hector is mainly because of SUV craze in India and Marketing. Let's see how long it sustains.
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Old 9th February 2021, 23:30   #28
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Re: Strategies & tricks that automakers use to survive in India

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Originally Posted by Flying_machines View Post
It is perfectly legal since they own the brand. But Mini and JLR originated as British brands, JLR is even manufactured in the same factories it's just the owner is an Indian now.
Well, MG manufactures its cars in India so that makes them indian by your logic. And MG did actually originate as a british brand like its being marketed as well.

Quote:
Hector was never a MG car they are simply using a brand name, that is what they did with Chevrolet brand in India by launching UVA Sail etc.
FYI The current Mini Cooper also has a BMW platform, BMW powertrains, BMW Management. Heck, they even share the same showroom floor. I request you then, to please explain to me how the Mini is more "authentic" and MG is an "imposter"

Last edited by sodapop : 9th February 2021 at 23:31.
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Old 10th February 2021, 07:41   #29
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Re: Strategies & tricks that automakers use to survive in India

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Originally Posted by sodapop View Post
FYI The current Mini Cooper also has a BMW platform, BMW powertrains, BMW Management. Heck, they even share the same showroom floor. I request you then, to please explain to me how the Mini is more "authentic" and MG is an "imposter"
What is British in the Hector or Gloster? They are just cars made by a Chinese brand.

Now, if it was a car with genuine British heritage like the MG-B or the MG-F etc. then sticking British flags on it would have been acceptable. And the British brand hype/marketing too.

But here — the Hector or Gloster have almost nothing to do with the Brits. The Bajoun 530 is a Chinese car, just rebadged as the Hector.

Maxus D90 is also a chinese car if I’m not wrong that’s being sold as a British.

In fact, I doubt if MG even does well in the UK. Haven’t seen it’s name in the top sellers anywhere.

Sure, Mini does share all those things with BMW but what it has with the Brits is a real British Heritage.
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Old 10th February 2021, 10:05   #30
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Re: Strategies & tricks that automakers use to survive in India

The best approach is what Ford did with the Ecosport, after having burnt their fingers offering the Fiesta without any localisation (cheapening). They made an Indian version for the Ecosport, that was a hundred odd kilos lighter, no idea where costs were cut. The rest is history, the model was the biggest success Ford India has seen, the same approach hasn't worked well with the Endeavor.

The key is to cut costs with engineering, spend on touch and feel parts that will convince the customer about the car. Nowadays, adding a large screen on the dash is half the work, also, high media spend will bury any negative publicity.
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