Team-BHP - Top variant costing double the price of the base variant

Quote:

Originally Posted by MT_Hyderabad (Post 5290355)

With such large differences in variants, we are merging two different segment cars.

Let's talk about creation of Nexa by Maruti.
According to their website:
"NEXA is created with the purpose of inspiring people to witness an exclusive automotive experience. It was ideated intricately for the Indian car buyers who wanted to be treated differently."

In simple words, Maruti does not want an 800 owner to stand alongside a Ciaz owner. Maruti was once selling the notion of its wide reach in rural areas and the extremities of the nation. But the moment they realised, or actually felt sorry for their luxury brand customers to share the same space as their mass offerings, they created the Nexa brand.

Yes, people are wise enough as per your understanding, and will not mind looking for a ciaz alongside a person looking for a 800. Right?
Nexa should not have done that as per you.
Maybe their marketing strategist are from third grade B schools. But unfortunately, it worked.
This half cost base variant is a strategy which these manufacturers are aspiring to gain low to mediocre variant sellout. I have my thoughts for the high end customers falling for such traps, when other manufacturers of a higher segment are waiting for them with open arms :).

Do you have different dealerships for low end cars and high end cars from the same manufacturer in the US? If not, we cannot compare the Indian market with US market.
The reason why this thread exists is a good enough reason why this won't work in India. It is a recent trend and may be marketing strategist of these companies are also reading these threads and creating data points for their next move. :)

There’s a thread of an 800 owner upgrading to a 630 or 640 BMW so it does happen. Lexus Toyota / infinity / Acura etc are examples of beloved nexa model that you ask
It is irrelevant at what price the base variant costs. The variant that has the buyers needs and wants met is what matters.

I missed the part of the 800/ciaz shopping example, are you saying an 800 shopper is untouchable? That’s disturbingly hilarious lol

With a wide variant spread of most cars these days, it has become really difficult to choose cars, the choices are endless and at the end that's mostly a good thing for the customer, I personally always pick the middle variant with all the necessities with ignorable things, well, ignored.
I don't have the heart to buy top variant of something like say the i10 nios over i20's Sportz kindof variant which gives most of what you would really need and appreciate. There are many other factors at play but ten out of ten times I will choose the better and a higher segment car of less kit over top variant of a lesser car for same money, but in Cruze's case I went with the top variant because that choice was simple, there were just 2 of them to choose from and for just 85k or so I was getting sunroof, leather seats, leather steering, push button start and more and for that kind of price and segment and at that marginal price difference it made perfect sense, for Creta I went with SX over SX(O) for the difference was about 3 lakhs for mostly better infotainment system, leathers seats/steering, cruise control, chrome handles and other minor stuff, just did not feel worth it and Creta didn't feel like a car that deserved 18 lakhs kindof money at that point, 5 years on and I'am pretty happy with my choice.

Quote:

Originally Posted by asit.kulkarni93 (Post 5289343)

Slightly off topic-

But a lower starting price is also indicative of the engineering that has gone behind the vehicle. The Korean cars may start at a lower price and the higher variant maybe full loaded but the structure is unstable as we have seen in the crash tests. I personally feel a major variation in the feature list is just there to take the customer for a ride. Things like a stable structure, good suspension & engine cost much than features like sunroof, ventilated seats, carplay etc.

I don't know if we can draw the same conclusion. Its more about what manufacturer want to do it with the cars, IMHO. Are you looking at a volume seller? Is it a life saving product for brand? Is it a brand building exercise? Different products have different strategies within a brand.

Magnite and new Celerio launched at 4.99L. Magnite is 4 Star NCAP and Celerio has questionable safety. So I don't think we can draw direct correlation just like that. More customisation options = more appeal to wider buyer range and its an ambitious option for any product in any industry. The production, engineering hurdles in BOM, training and complete chain etc goes crazy. If one can achieve it without major tradeoff, its a win-win for both parties. Tata Motors playing with variants ( Nexon has 70 variants as per CarWale) is under same rationale and it clearly works for them too.

Is it worth the price? Again we have to go case by case.

Quote:

Originally Posted by GTO (Post 5289407)

By the way, top variants costing twice the price of base variants is prevalent across segments. At the higher end too, you'll see the Maybach S-Class & Maybach GLS costing twice that of their more "regular" siblings. Then of course, we have the //M & AMG versions that cost 2 - 3X the regular cars.

You forgot to mention Porsche :D

They offer so much customisation that you can make a model which costs 5-7 time of the base price. rl:

Quote:

Originally Posted by Dr.AD (Post 5289192)

I do not see this as a problem at all. The 2x cost difference comes due the wide variations in engine options, transmission options, and other features. Basically this just means a wide range of choices to the end customers. And I think that is definitely a good news for the end customer.

Whether the cost is justified or not is for each individual to decide.

Quote:

Originally Posted by landcruiser123 (Post 5290436)

Consider this a step towards maturity in the Indian car market.

Indian cars makers are now offering more powerful engines and automatic options as buyers are willing to pay for them. :)

Exactly. Its a positive trend.

People: There's not much choices.
Carmakers: Here's more choices and the price chart.
Also people: Why does the top variant cost double the price of the base variant? Am I being ripped off?
Carmakers: Perhaps because it costs more to add the features you asked for?

On a lighter note, do try Porsche's online Car Configurator in Europe/USA/Australia. The options and their pricing will blow your mind. :)

Quote:

Originally Posted by Ragsk747 (Post 5289054)

Similar case with several others like XUV700, Creta etc

Because Creta has so many options, some customers go for the least expensive option and then upgrade later (This can be seen as a real advantage as well).

Quote:

Originally Posted by GTO (Post 5289407)

Many times, we see the base variant being launched at a very attractive starting price, but it's never available in the showroom

lol: After the makeover in 2018, I went to a Ford showroom to examine the Ambient Model, and the salesman told me flatly, "Sir, it's only on paper."

Quote:

Originally Posted by SmartCat (Post 5290397)

In India, Hyundai has been the pioneer of this strategy.

Absolutely.

Slight OT here:

Creta buyers, from Andhra Pradesh, purchase the lower-end variant and upgrade it to the top-end variant through specialised accessories dealers in Mumbai (Eg: Vig auto in Vashi). The upgrade is inexpensive, and the dealer performs it without jeopardising the warranty. Even with the update, the overall cost is far lower than the top end.

Quote:

Originally Posted by RGK (Post 5290646)

Because Creta has so many options, some customers go for the least expensive option and then upgrade later (This can be seen as a real advantage as well).

lol: After the makeover in 2018, I went to a Ford showroom to examine the Ambient Model, and the salesman told me flatly, "Sir, it's only on paper."

Absolutely.

Slight OT here:

Creta buyers, from Andhra Pradesh, purchase the lower-end variant and upgrade it to the top-end variant through specialised accessories dealers in Mumbai (Eg: Vig auto in Vashi). The upgrade is inexpensive, and the dealer performs it without jeopardising the warranty. Even with the update, the overall cost is far lower than the top end.

Vig Auto and many other youtube channels are basically taking the customers for a ride. I've seen their videos and the amount they charge is exorbitant. 20-30k for faux leather seat covers, 30-40k for headlight and fog lamp upgrades, 25k for Chinese brand head units, and the list goes on.
Also, you cannot say that the car becomes top end because no after market accessories shop can install the following things which truly make a top-end variant:
1. Airbags. Top end comes with 6-7 airbags.
2. Sunroof.
3. Ventilated seats.
4. Smart car features, such a engine start from mobile app, etc.
5. OEM grade car purifier, wireless charging mat, etc.

A few cosmetic and comfort changes are good and reasonable, like getting map lights, sunglass holder, steering controls, seat covers, music system, etc etc. But buying the idea that the base model car can be "converted" into a top model is basically a scam which many people fall into and then end up spending way way more money than it's actually worth.

Quote:

Originally Posted by DeepakS (Post 5290882)

Also, you cannot say that the car becomes top end because no after market accessories shop can install the following things which truly make a top-end variant:

Agreed. It is not a true top end, but it is an excellent upgrade.

I have no idea how good their job is or how much they charge. Heard from a few Vijayawada friends who had completed this upgrading.

These shops do not work on anything that could affect the warranty (eg: ABS: EBD+ESC+VSM). The majority of them are purely ornamental, yet they are very useful (eg: Diamond Cut Alloys, Arm Rest with Cup Holders etc). The advantage is that one can choose what he or she wants, which is not possible with OEM.

Note: When Creta is referenced in this thread, I feel compelled to respond :).

Quote:

Originally Posted by RGK (Post 5290932)

These shops do not work on anything that could affect the warranty (eg: ABS: EBD+ESC+VSM).

The text in bold should read as "cannot work."
Depending on the buyer the main advantages of the higher versions are those very acronyms that they cannot work on.

I guess if one starts to work on those acronyms the costs associated to replace the necessary parts would be far higher than the difference in cost of the variants.