[YD14]

Originally Posted by CoolFire

I feel it is the lack of visual bulk which is the biggest hindrance to their success. All the successful competitors of the segment - Creta, Seltos and now Grand Vitara/Hyrider twins really look one size bigger than these two. The 10cm shorter width, size and height do make it look much smaller.

+1 on that. We bought a Creta SX IVT in October 2021 for 18L on road. I wasn't able to convince my father to go for the newly launched Skoda Kushaq simply because of its design inside and outside. It looked like a hatchback to him and the interior was lacklustre. On top of that, it had no amusing features.

Today SUVness and design are the most important factors in selling a car in India and the VAG family's 2.0 cars don't have much going for them in these departments. Though the understated design ages well and is loved on this forum, it is not what the public wants. I will put my head on the line and say that the new Verna will outperform the VAG "SUV" twins despite being a sedan.

[Nilesh5417]

Originally Posted by jetsetgo08

They are too pricey for what they offer.

That to me sums it up - poor interiors, no USP in terms of features, forget USP - they didn't even offer what others were offering, the overhang of historically bad A.S.S, small SUV proportions, big time niggles that weren't sorted for almost an year (a.c. issue was not small thing), poor engine-gearbox-variant distribution. The list could go on...

No car checks all the boxes but these left far too many unchecked and yet were priced a pretty penny!

[CoolFire]

Originally Posted by reppy

1. Pathetic aircon (for the 1 litre TSI, which could've been a bestseller otherwise)

This seems to have been solved to a big extend with the latest software update. I have written in detail about this as well as the niggles which had almost all gone away now in this thread (Skoda Kushaq Review)

I will fully agree that it has been very very late - almost 2 years since the launch.

[MT_Hyderabad]

Gosh! the main reason is not mentioned by the OP or others.

The main reason why these cars do not sell much is because of Extremely Poor Resale Value of cars which these manufacturers launched earlier.

One more point, OP may have just finished his MBA. I was having similar thoughts of doing breakthrough market segmentation and positioning analysis and calling all the failed car models as poorly positioned etc., when I was doing mine from ISB. However, I realised that there is no one solution to these problems and the situation is quite complex than what it appears to be.

The product development and marketing teams of these big shots have many well educated and competent people.

[shibujp]

Originally Posted by androdev

Lack of trust in the brand is the reason.

Period. This is all there is to it. No need of endless analysis paralysis. Now that the 2.0 plan has been more or less put to rest by the Grand Vitara, Fronx, Jimny and the new Verna I think it is time for 3.0 plan! These numbers are set to fall further. We saw exactly the same pattern for the Polo, Vento, Rapid and whatever model has been launched in India by the VW group.

Drive on,
Shibu.

[pannags]

I believe the VW-Skoda twins are decently loaded with features. As far as niggles are concerned, this is also common to most new launches. Just that the Taigun and Kushaq had basic things such as the AC and power windows underperforming/malfunctioning.

Originally Posted by CoolFire

I feel it is the lack of visual bulk which is the biggest hindrance to their success

Originally Posted by motorworks

As rightfully stated by another bhpian, I think the biggest reason for the Kushaq and the Taigun not doing very well is down to its dimensions.

Exactly my thoughts as well. While I think the dimensions are near perfect for an urban CSUV, the road presence resembles sub-4m best sellers. The interiors are a let down too with hard plastics all around the cabin rendering a boring industrial vibe.

[One]

Just partially quoting myself (Skoda Kushaq Review) from the time Kushaq was launched

Originally Posted by One

The Kushaq is supposed to be the car that saves Skoda. Can it achieve this now that the details on paper are available (this post is not whether the car suits me or meets some specific requirements):

One way we can model this is to use Creta/ Seltos as a base and see where Kushaq lands. The Creta sold ~7500 units last month whereas the Seltos sold ~4200 (the Venue sold ~4800 and Sonet did ~6600 but we can ignore them for multiple reasons here, primary being that those numbers are less than Seltos which we want to focus on here). Reference

Considering a pessimistic scenario, let's use the Seltos sales numbers as our base.

Monthly Sales (May 21) - 4200
Approximate Petrol Sales at 60% (reference for 60%) - 2520

Around 40-50% of this is 1000-1200 cars a month. Less than this might not be enough to sustain the company. So the questions are:

- Do we think Skoda can do 1000-1200 units a month
- Is that a number which helps Skoda as a manufacturer in the country (also keep in mind India will be used as a base to export this model)

I personally think it can do these numbers.

I don't see absence of 6 air-bags as an issue for the market (if braking issues of a best selling car are not an issue, then this certainly isn't).

I don't see ASS as an issue , atleast initially (Magnite sales as an example).

The only things I see going against it for big numbers are:
- Size and this doesn't refer to it being a 4 seater. It refers to physical attributes, doesn't look like a "baaaadi gaadi" which Creta/Seltos look like and doesn't look butch like an EcoSport.
- Bling like sunroof. This is a feature that announces "arrival" to a certain segment, much like Honda City did years back.

1000-1200 units though should be easy, this segment has enough buyers. If it had been a sedan segment going with this kind of pricing against the best sellers, I would have had a different opinion. But the number of people buying cars in this segment should ensure these numbers.

For me, the only question is, what is the number of units to be sold monthly for Skoda to consider it a hit or even to sustain itself here. And of course, can Skoda improve its ASS, or.....maybe....is DQ200 trouble free

I personally don't think some of the reasons like brand trust are factors - again Nissan Magnite sales being indicative that price matters more than branding at these levels (of Magnite and Kushaq segments).

It is doing the numbers which can be considered as expected to do considering there's no compelling factor in terms of price to choose it over competition. It is doing around 75% of Petrol Seltos sales which is pretty much decent (this ratio might be different from the numbers quoted in an older post but it does give a sense of how it is doing relative to other players).

[gopi_rm]

I feel it's due to combination of multiple reasons:

• Lack of mass market traits such as bigger exterior dimensions, macho looks, bling features, etc. Both cars look more like CSUVs.
• Major niggles such as EPC, AC cooling and power window issues. These are basic things one would expect from even a cheap hatchback.
• Think dealer network coupled with worst customer service reputation, expensive service costs and delay in procuring spares.
• For VAG fanboys (including me) major downgrades such as cheap plastics/roof liner/seat covers, lack of auto up-down on all windows, narrow rear seat width, poor quality camera, no upgraded music system even on top variant, etc. are irritating factors. VAG is known for value for money premium brand all over the world. My Golf Mk7 is a benchmark for how a VAG car should be!

[pqr]

SAVW got a combination of four things wrong with their MQB 27 IN platform based SUV products.

• Price-to-size ratio.
• Price-to-feature ratio.
• Quality with respect to PQ25 platform based products.
• Lack of diesel as a fuel choice.

Still, they got two things right.

• A driver’s car.
• A safe car.

Now I will try to elucidate these points.

Price-to-size ratio



Indians buy SUVs and crossovers for their imposing image from the outside and commanding position from the inside, which to a certain extent comes from overall dimension and to a greater extent from design and stance.

In the past, Maruti S-Cross didn’t work despite being Maruti, and currently MG Astor is also not working despite having a long feature list, but Hector is doing better numbers due to an upright and imposing front stance. They both got dimensions in the ballpark of the Hyundai Creta, but what about upright stance and an overall imposing image? Same was the story for Ford Endeavour and Toyota Fortuner. The rear side of the Endeavour was not appealing.

Now coming to SAVW products, they have the same width as sub-4-meter crossovers (1.76-metre range), length less than segment benchmarks, and do not have an imposing stance. So it basically looks like a longer Cross-Polo.

Price-to-feature ratio

The 1.4L Hyundai Creta SX(O) was priced at ₹ 18.3 lakh, and the 1.5L Skoda Kushaq Style is priced at ₹ 19 lakh. Hyundai offers a panoramic sunroof, a better camera, powered seats, more functions for the digital instrument cluster, an EPB, remote connected features, rear seat recline, all-disc brakes, etc. for ₹ 70,000 less. Features matter, especially for family cars, and the SAVW is far behind in this segment. Which is why Maruti tried to get most of the features for the Grand Vitara, though it lacks finesse, and it is doing better than the S-Cross. MG Astor still doesn’t sell well despite having features, as noted above, the overall value proposition is a combination of many things.

In some cases, SAVW has resorted to penny-pinching, like the omission of their hallmark one touch all power window up-down with anti-pinch function. What a shame.

Quality with respect to PQ25

Quality is adherence to a standard within a tolerance limit. Now standards are set by PQ25 platform based products like Vento and Rapid, and were diluted in MQB-based products. It may not be that apparent to average buyers, but what about their loyal customer base? They saw, they noticed, and with money in their wallets, they decided not to buy. Alienating loyal customers is a sheer blunder.

Lack of diesel as a fuel choice

SUVs still have a substantial diesel mix, especially when car sizes grow. Hyundai-Kia managed the BS6-RDE challenge with a cost-effective solution, and Tata and Mahindra too will offer diesel vehicles in the future in this very segment. Maruti is trying to substitute diesel with Toyota’s hybrid technology and the first in-segment CNG option. So how did diesel champions (for right and wrong reasons) like SAVW get it wrong to read the future market?

They got two other things right as well.

But are these really value drivers for Indian customers? The answer is no.

A driver’s car.

Making a driver’s car is in the DNA of the group, so they got it right, as their platform can handle it better than Hyundai-Kia. But a driver’s car can be best enjoyed by the driver, as others often get tossed around when the driver is driving way too enthusiastically. So, what the rest of the passengers will do, at least in Creta, they can gaze up at the sky through the panoramic sunroof. And not everybody in India is an enthusiast, which is why the MG Hector is selling well despite its boat-like handling and lifeless petrol engine.

A safe car.



Do Indians really care about safety? Not to a larger extent. The Hyundai Creta is doing better despite its low GNCAP score. It is not like Hyundai-Kia can’t make safe cars with high crash test ratings; it's just that they don’t for the Indian market, unless government policy compels them. In the absence of regulation, they are just minting money as the large majority of customers aren’t very safety conscious. Again, SAVW has this in their DNA, and they didn’t get it wrong as the cars were engineered in Wolfsburg, Germany.

What about brand reputation, niggles, and after sales service?

Tata Nexon has a lot of issues, but it is doing best in its segment. Nissan in India made a comeback with the worst dealership network, just because of a product with the right value proposition - Magnite. So many buyers overlook a few things if the value proposition is very compelling, though these attributes also are value drivers and part of value proposition.

Summary

Thus, the SAVW SUVs don’t turn out to be a better family car due to their lack of SUV stance, less in-cabin space, fewer features to engage fellow passengers, and higher price.

SAVW got the value proposition wrong for India 2.0 SUV products. They don’t have attributes that Indian customers actually value (care), so it is not doing well for now.

Enthusiasts will continue to buy and recommend, but their market size will be too small to support the volume needed to break even as per Indian industry standards.

[EV NXT]

1 India becomes Skoda's third largest market behind Germany and Czech Republic

2. Carmaker retailed 51,865 units in India in 2022 a 128% growth over 2021.

3. Slavia, Kushaq were Skoda's highest produced cars in India

Skoda Auto recently released its 2023 annual report sharing the company’s financials and sales performances across the globe for 2022. The big news however was India rose into the brand’s top 3 markets for the first time in terms of sales with 51,865 units(a 128 per cent growth) sold in 2022 behind Germany and the Czech Republic.

Source

India’s largest selling car Maruti Alto has a far greater decline than the Kushaq:



Six months sales data of cars never were a basis to draw conclusions as there would be several temporary causes that affect the market as a whole such as recessionary trends, lack of chips, market sentiment etc.

On the face of it, this thread represents misinformation more than a genuine case study.

[Shreyans_Jain]

Originally Posted by androdev

Lack of trust in the brand is the reason.

Product-market fit is actually fantastic.

Ford could not sell Endy as people only wanted to buy Fortuner. It’s all about the trust in the brand.

We can call it lack of trust, we can also call it a case of herd mentality. People put their trust in rank unknowns like Kia and MG.

Fact is that while the twins may not be selling much when compared with the Korean duo, I think they are doing fairly well for themselves and are only being held back by their parent’s own little follies. Otherwise, the cars are excellent.

An update fixing the cabin quality - material changes here and there, offering a panoramic sunroof on the top models, tom toming their maintenance packs will go a long way. The stupid feature deletions gave them bad PR, that needs to be reversed. The 10 inch screen has to be restored. And the silly differentiation they have done in the name of brand identity - offering woofer on only the Skodas etc, these things need to be standardised across both makes. They are competing in a cutthroat segment, and they need to put their best foot forward. Petty corporate tantrums and shenanigans can be left at home.

[pqr]

The company's press release cannot be taken at face value, as a lot of information is concealed behind selected data points.

Originally Posted by EV NXT

1 India becomes Skoda's third largest market behind Germany and Czech Republic

Fact: Because they crashed out of their biggest markets - China (30% sales at 3,00,000 units in best year) and Russia (they had 5-10% market share their).

Originally Posted by EV NXT

2. Carmaker retailed 51,865 units in India in 2022 a 128% growth over 2021.

Fact: Low base and new product launch effect. The question here is: is it sustainable without the discounts currently on offer?

Originally Posted by EV NXT

3. Slavia, Kushaq were Skoda's highest produced cars in India

Fact: Are they industry benchmarks? So why offer such a large discount?

[TheFonz]

I’m a first time car buyer and bought my first car in January this year. When I started looking for a car, I was blown over by the Creta’ looks and feature set. I too had rejected the VAG twins as they looked smaller in comparison and did not have the perceived “road presence” that is desirable to a car buyer.

Only on doing much more “research” did I come to understand the importance of safety and thrill of driving that comes with a car having good driving dynamics.

I finally ended up buying a Red Virtus GT, but I consider myself mostly in the minority segment.

[SerArthurDayne]

Originally Posted by MT_Hyderabad

Gosh! the main reason is not mentioned by the OP or others.

The main reason why these cars do not sell much is because of Extremely Poor Resale Value of cars which these manufacturers launched earlier.

Poor resale value is not the reason, it is the outcome.
At least this can't be "The Main Reason".
Why would anyone buy cars that are struggling to sell in the first place.
When KIA was new to the market, people were worried about resale as the brand had zero recognition. But still they managed to sell so much because of their well-thought cars.

Just because the answer had the "MBA vibe" to it, doesn't mean that it's incorrect. And yes, there's never a single solution. However, the solution isn't always complicated, and sometimes, you just need some basic fundamentals.

[Newtown]

Originally Posted by pqr

[b]SAVW got a combination of four things wrong with their MQB 27 IN platform based SUV products...

As a user of both the new offerings (Sedan & a confused sedan) by SAVW, your conclusions are absolutely spot on. There could not have been a better explanation and so wonderfully elucidated.

About the plastics - You may think the insides are sub-par but make no mistake that the black cladding in multiple places in its exterior, are far worse. Finish & quality be dammed, the fit itself is putrid.

The Taigun to me is a slightly raised sedan which is what attracted me to it. But as you pointed out - To most this is unacceptable because at the price point its small and not imposing with a list of creature comforts that could dwarf and dwarf.

The simple truth is that car ownership in our part of the world is more of a family experience. There is a consensus building that is done to arrive at the vehicle of choice basis a multitude of criterion.

In parts of the world where a car is a necessity for everyone in order to be mobile, this may not always be the case. They do not need to have that buy in from multiple stakeholders.

All apart - When you are behind the wheel of one of these vehicles, EVERYTHING is forgiven