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Old 6th April 2023, 20:52   #1
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Graveyard of premium sedans

Graveyard of premium sedans

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From April 2023, due to the BS6-RDE emission compliance phase in India and reluctance on the part of Skoda to upgrade drivetrains, became the final nail in the coffin of the Octavia and Superb. As production of non-compliant BS6-RDE passenger vehicles was not allowed after March 31, 2023. However, sales of BS6-compliant vehicles produced before April 1, 2023, are still allowed.

With that, an era of premium sedans also came to a grinding halt as the Camry hybrid remained the lone player on ventilator support from Toyota.

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Overall, the 2023 sedan landscape does not look promising either. Sad news for many remaining sedan lovers, but this story had a quite an upbeat start in 2001.

Premium sedan segment

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So, what exactly is India's premium sedan segment?

For that, let’s revisit the starting point. India's economic liberalisation began in the early 1990s. By the mid-90s, many foreign carmakers started investing in India and brought new sedan products from their global portfolios.

These products were contemporary with new-age technology in comparison to the archaic Hindustan Motors Ambassador and Premier Padmini, which remained staple sedan products for decades due to the government’s policies.

Then came the new hierarchy of sedans. There were mass-market sedans (C1) with a low entry price point like the Ford Ikon, Maruti Esteem, Fiat Sienna, etc. Then there were a few more powerful and larger categories of sedans, like the Honda City, Mitsubishi Lancer, and Opel Astra, etc often called mid-size sedans (C2).

In 2001, Skoda launched the Octavia in India. It was larger than the Honda City, with a much larger engine and thus more power, and an upmarket interior with more new age features, as well as some top end features of the lower segment (C2) being standard from the start. Thus being more premium in every aspect, thus earning the ‘premium’ tag or ‘affordable luxury’, also referred as D1 sedan segment in India.

In the same year, Honda and Hyundai launched the Accord and Sonata, respectively, which were a size bigger from the Octavia and thus entered the second and higher level of the premium sedan category with even even more in-cabin space, also referred as D2 sedan segment in India.
In luxury parlance, there were the Mercedes-Benz C-Class and E-Class, respectively, of similar size with better cabin experience and driving performance, thus commanding a much higher price.

Cars have always been a status symbol in India, and in the era of the sedan, the longer the sedan, the higher the prestige value. This made this particular hierarchy from 2001 a little more rigid.

Important to note here is that products in the premium and luxury segments are global in nature, with little customization for small local markets. They arrive in India via either the CKD (completely-knocked-down) or CBU (completely-built-unit) import route, attracting differential custom duty and remaining vulnerable to foreign exchange development.

Rise and fall of premium sedan segment

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With different brands bringing in new products, the premium sedan segment grew rapidly until 2007. By that time it had reached its peak of 18% share in overall sedan market. The global recession and slowdown in growth of the Indian economy resulted in subdued consumption in 2008 and 2009. Following that, 2010 sales nearly reached its previous peak.

And that’s where the story of the decade-old rapid growth of the premium sedan segment ends. All of a sudden, since 2011, demand for premium sedans has started to fall. So what started shifting the demand away from the premium sedan segment?

Tremors – fuel price differential and adverse forex development

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Following 2010, there was a shift in demand for diesel-powered vehicles, as the petrol-diesel price differential reached an all-time high during the double dip global recession. Premium sedans without diesel engines have come under fire, as the fuel consumption of large petrol engines is higher, resulting in a higher running cost. As a result, diesel sales in the premium sedan segment reached 74% in 2012. Prompting brands like Honda to discontinue both its Civic and Accord models as they had a petrol-only drivetrain option. Products with a diesel heart option survived the storm, but by then another storm was waiting.

The forex rate surged in the meantime, forcing brands to raise prices as almost all of them were having CKD operations with large imported contents. This forced them to raise the price without a commensurate increase in value. Demand began to fall further as a result of price elasticity. As several buyers either switched to a higher trim of sedan from a segment below (C2), as latter also grew in size, with more equipment than before. For example Honda City by then got a sunroof for V CVT variant at ₹ 10.2 lakh ex-showroom price. In higher price band, customers were lured away by heavily discounted entry-level luxury products from German trio.

Were the premium sedan segment market ready for another disruption?

Tectonic shift - SUVfication and a change of heart in Indian customers

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This is the time period when SUVs like Mahindra XUV 500 and Toyota Fortuner were also launched in their respective segments, each with a local production base, and each started openly attracting demand for SUVs.

This ensued a new decade, when Indian customers quickly switched to a new favorite body style (SUV) that provides similar in-cabin space with the added functionality of ground clearance. The emotional benefit of an imposing image from the outside and a commanding position from inside, the SUV took precedence over the driving dynamics offered by sedans, and it also helped to overcome the inconvenience of body roll in the tall SUV.

One of the former Director of sales and marketing at Maruti-Suzuki (Mr. R.S. Kalsi) has beautifully summarised this emotional benefit as "Unchi is the new lambi", loosely translated as taller and more imposing SUVs are now the new parlance of longer sedans in terms of desirability and prestige value.

Premium brand : winners and losers

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Because these automakers also sold mass-market products, the premium sedan segment became a proving ground for brand identity in India. As premium positioning in the minds of customers can be leveraged for better pricing opportunities. Skoda and Toyota have been the most successful players in the premium sedan segment, followed by Honda and the Chevrolet brand. Despite the success of their premium sedan products around the world, Hyundai and Volkswagen have always played second fiddle in India.

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Volkswagen, in fact, worked hard in India to achieve European positioning, where it is one step ahead of Skoda, and charge premium pricing over sister brands – Skoda and Seat. However, that never materialized in India. This is because Skoda has been the definitive brand in India when it comes to premium sedans, and it has also remained an important part of the premium sedan growth story. Skoda’s most affordable product, the Fabia (hatchback), with its initial CKD origin, never diluted its positioning in the mass market segment until the rebadged Volkswagen Vento landed in Skoda’s India stable under the name of Rapid.

Nissan, Renault, and Maruti just ended up with a wannabe image in the premium sedan segment. Ford failed in the premium sedan segment, however, found success with the Endeavour SUV. Opel's story was very short lived, as GM has replaced it with the Chevrolet brand in India.

Premium sedan D1 products : winners and losers

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Toyota led the way in premium sedan D1 segment, followed by Skoda, Chevrolet, and Honda. Toyota Corolla, Honda Civic, and Skoda Octavia took the crown on occasion, and Hyundai Elantra once by chance.

Skoda Octavia (2001-2006-2014-2021-2023)

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Spanning over four generations and more than two decades of presence, Octavia marks the start and the end of the Premium Sedan D1 segment. Octavia developed a cult following among Indian customers and was regarded as the creamy layer in the premium sedan D1 segment. Octavia has always been known in India for premium interiors, a battle tank-like build, huge interior space, a long equipment list, and a great driver’s car. In its early years, the Octavia offered alloy wheels, which even the Mercedes-Benz C-Class did not have. The L&K variant launched later in 2004 was equipped with more equipment, including a sunroof, a bi-xenon projector headlamp, and leather upholstery. Octavia also demonstrated early on that a diesel engine could be refined and enjoyable. Octavia also introduced Volkswagen AG’s turbo-petrol (TSI) and dual-clutch transmission (DSG) technologies to this segment.

The first generation Of Octavia was quite successful in India, as Skoda continued to introduce new variants. In 2005, Skoda took the decision to bring the second generation of Octavia to India and named it Laura. Renaming was done because Skoda India continued to sell older generations simultaneously, by repositioning. Laura's sales grew slowly, and success wasn't the same as that of the first generation Octavia.

The third generation Octavia was built on Volkswagen's new MQB platform, and its design was inspired from Audi. There was also a steep price hike. Third generation’s sales reached its highest level when the quad-headlamp facelift was launched. Octavia's fourth and last generation came without a sunroof, and its overpriced perception limited its sales number.

Skoda has also introduced a high-performance version of the Octavia known as the vRS. The first vRS was launched in 2004 with a 1.8L TSI petrol engine and 150 PS power output, at ₹ 13.2 lakh. Later in 2018, the vRS version was re-introduced with a 2L TSI petrol engine having 230 PS of power output, as the 1.8 TSI became the staple engine for the regular Octavia. At ₹ 24.6 lakh, the price was appealing. This was followed by the final iteration of vRS with 245 PS power output and front LSD, came in 2020 as a CBU import with a hefty price tag of ₹ 35.99 lakh. Both 2L TSI vRS versions were sold in limited numbers.

Skoda also experimented with a station wagon version of the Octavia in 2005, which wasn’t successful as Skoda was able to sell only 229 units until 2008. Indians rejected the concept of station wagon from the start, introduced by other brands as well from time to time.

Toyota Corolla (2003-2008-2014-2020)

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The Corolla remained the best-selling car and maintained its leadership position in the premium sedan D1 segment. It also remained the only car in the segment without a sunroof throughout its three generations. The Corolla has a decent and spacious interior, and a satisfactory feature list. The Corolla was mostly regarded for its typical Toyota qualities of reliability and low maintenance cost. In its third generation, the Corolla skipped conventional design language and adorned little flamboyant looks inspired from Lexus.

The Corolla came with a refined and reliable 1.8L VVT-i engine from beginning to end. In 2010, it was joined by a 1.4L diesel engine with a mere 90 PS power output, quite underwhelming from a competition stand point, but engine was high on fuel efficiency at 21.4 kmpl ARAI certified figure. In 2012, the diesel mix for the Corolla reached an all-time high of 66%, as low power figures did not deter chauffeured customers.

Chevrolet Optra (2003-2012)

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Chevrolet introduced Daewoo Lacetti as a rebadged Optra in the Indian market and positioned it at the lower end of the price spectrum. Though a size smaller in the competition basket, it always remained a value for money offering in the segment. It was introduced with a 1.6L and 1.8L naturally aspirated petrol engine. Later, it was followed by a 2L diesel engine in 2007, in a facelifted avatar with the Magnum suffix.

Hyundai Elantra (2004-2008 & 2012-2016-2021)

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Elantra always came with all the bells and whistles, including a powerful CRDi diesel engine, but it never felt too special or desirable in the competition basket.

Second generation Elantra having fluidic design theme immediately caught the attention of buyers, in 2012. In India, the first three years of the second generation Elantra were the best.

The third generation Elantra featured a Jaguar-inspired design, but sales were disappointing. After a radical facelift in 2019, sales were grounded, forcing Hyundai to pull the plug. The Elantra story has a subtle hint about how overall brand image matters in an Indian context.

Honda Civic (2006-2012 & 2019-2021)

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With ingredients like - sports car like silhouette, a twin pod tail lamp inspired from Ferrari, a futuristic aircraft like cockpit, and a spirited 1.8L naturally aspirated petrol engine, the Civic became an instant hit among young buyers. Thus, Civic also achieved its highest ever sales mark of 17,329 units in 2007, which is also the best in the segment. Civic often used to scrapes its belly on Indian roads, due to the low ground clearance, and limited boot space it offers, were major purchase deterrents. The lack of diesel engine and high petrol prices after 2008 made Civics’ life more difficult, forcing Honda to pull the plug in 2012.

In 2019, Honda relaunched the Civic with a similar petrol and new diesel drivetrain. After only three months on the market, Civic's sales have slowed due to mismatched value proposition of drivetrains on offer. Diesel was underpowered, that too without automatic transmission option, and petrol was paired with CVT transmission only, which robbed the driving performance. Rear seat was too low positioned for the Indian market, and the sloping roof line reduced rear headroom, so back seat prospects simply ditched the idea of buying a Civic.

A CKD assembly line was located at Honda’s Greater Noida facility, and while shifting operations to new plant located at Tapukara in Rajasthan, Honda didn’t had a business case to set up a CKD assembly line, because Civic and CRV weren’t selling well due to Honda’s own fault. Finally Civic was discontinued in 2021.

Volkswagen Jetta (2008-2011-2017)

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In India, Volkswagen also took a top-down approach, launching premium products to build brand image before going mainstream. The 2008 Jetta was made in India from CKD kits imported from Mexico. There were two engine options, a 1.6L naturally aspirated petrol engine and a 1.9L TDI diesel engine. The design was conservative by Indian standards and didn’t work well in Jetta’s favour.

The second generation Jetta was launched with a 2L TDI diesel engine followed by a 1.4L TSI petrol engine, both in a lower state of power tune with a steep price change. This generation was underpinned by the old PQ35 platform, whereas cousin - Skoda Octavia moved to the MQB platform in 2013. Despite its built-like-a-tank appearance, the conservative German styling, steep price, close front-face resemblance to the Vento, and engines in lower power tuning kept its appeal limited in the competitor basket.

Chevrolet Cruze (2009-2017)

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Cruze was launched in India with a 2L diesel engine having 150 PS of power output. The design was sporty and contemporary with a decent feature level, all this has propelled its sales into the fast lane in a market with strong demand for diesel powered vehicles during those times. Positioned above Chevrolet Optra, it retained the #2 spot in the D1 premium sedan segment for three successive years. Being developed for the American market it surely lacked finesse of European counterpart, though.

Toyota Prius (2010-2016-2017)

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Toyota introduced the CBU Prius hybrid third generation in India at the 2010 Auto Expo for ₹ 26.6 lakh and ₹ 27.9 lakh. Prius has a 1.8L petrol engine producing 98 PS of power. It was coupled with an electric motor with a maximum power output of 80 PS, along with a NiMH rechargeable battery pack hybrid drive sytem. Sales fizzled out after the first year, as it was very expensive in imported form.

In 2016, Toyota launched the fourth generation Prius in India at a price of ₹ 38.9 lakh, and was able to sell just 8 units.

Renault Fluence (2011-2017)

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Renault has followed a top-down product introduction approach in India. By launching premium products first to establish the brand. Fluence had a 1.5L diesel engine shared with other Renault-Nissan products in India, as well as a 2L thirsty petrol engine mated to a CVT transmission. Due to its uninspiring looks and engines, it lost steam too quickly and has largely gone unnoticed in the Indian market.

Maruti Kizashi (2011-2013)

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Maruti-Suzuki wants to make a mark in the Indian premium segment. So they launched the CBU Kizashi, manufactured at Suzuki Motor Corporation's Sagara plant in Japan, at ₹ 16.5 lakh and ₹ 17.5 lakh for the MT and CVT versions, respectively. The Kizashi was powered by a 2.4L petrol engine that produced 178 PS of power while claiming a fuel efficiency of 12.5 kmpl.

Well, it was neither value for money nor fuel efficient, a typical trait of Maruti, expected from all its products in India. Because Maruti is associated with mass-market products, the badge value was not premium enough to support the brand identity. As a result, it was a major sales disaster and a lesson for Maruti.

Premium sedan products D2: winners and losers

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Skoda and Honda were the most successful players in the premium sedan D2 segment and maintained their leadership positions. This was followed by Toyota.

Honda Accord (2001-2004-2008-2013 & 2016-2017)

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Honda has kick-started the premium sedan category in India by launching the global sixth generation of the Accord in July 2001. Initial numbers were not so good, as spec was on lower side and pricing on higher side, also a generation change was due.

By 2003, Honda replaced it with a newer generation, and the Accord became the segment leader for years to come. Honda has even launched a V6 engine for performance oriented buyers.

Early years for the third generation (India) were good, but the latter half of PLC turned soar as Accord was available with a petrol-only engine for which demand dried up. So Honda has to make a tough call and discontinue the nameplate.

Three years down the line, they mustered the courage to relaunch the Accord, this time in CBU strong-hybrid form to address the fuel efficiency needs of potential customers. Due to CBU imports, Accord got outpriced in the segment, and sales were a disaster!

Hyundai Sonata (2001-2006-2012-2014)

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Just after the Honda Accord’s launch in 2001, Hyundai launched the facelift of the global fourth generation of the Sonata in India. It started selling in decent numbers in its early years owing to its value for money proposition and its front headlamp's resemblance to the Mercedes C-Class.

The second generation (India) was launched with the Embera suffix, and it didn’t do well, mostly due to its uninspiring, bland styling, despite having a good diesel offering.

The last generation in India adorned Hyundai’s famed fluidic design and made it ostentatious for some, but its only petrol (GDI) engine offering took an early toll on its life when petrol as a fuel was completely out of favour.

Ford Mondeo (2001-2005)

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Ford brought the made-in-Belgium CBU Mondeo with both petrol and diesel engine options to India. Ford has adapted the suspension setup from the Mondeo sold to Norwegian police, where cars occasionally travel on unpaved surfaces, to suit Indian driving conditions. Mondeo bombed on the sales chart. Ford has outpriced CBU Mondeo in the segment.

Toyota Camry (2002-2006-2012-2019-)

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The first two generations of Camry in India were brought in as CBUs. As a result, it was always overpriced in the segment. The rear seat experience has always been a key selling point for the Camry in India, besides the innate quality of the Toyota badge.

From the third generation (India) onward, Toyota shifted to CKD production and also introduced a strong hybrid drivetrain with a very attractive fuel efficiency of 19.6 kmpl ARAI certified figure. Sales increased because the Hybrid was better equipped and had a lower tax incidence (~28%) until 2016. After the implementation of GST in 2017, tax incidence on hybrid Camry has gone up (43%), thus hampering sales.

The current generation Camry and only surviving premium sedan product was launched in 2019, and it has adorned Lexus look, which seems a little bit pretentious and pompous with regard to previous generations. It also happens to be only the Camry that is better equipped, especially with Indians' favourite sunroof. A higher price, limits its market size, but a good feature list, a good rear sofa seat experience, strong hybrid fuel efficiency and strong will at Toyota India have kept it going.

Opel Vectra (2003-2004)

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Opel’s CBU Vectra met the same fate as Ford's Mondeo, even worse in terms of sales.

Skoda Superb (2004-2009-2016-2023)

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In June 2004, Skoda launched the CBU Superb with a 2.8L V6 petrol engine at a price tag of ₹ 23.5 lakh, followed by a six cylinder diesel engine version in October 2005 at ₹ 21.8 lakh. This pretty much explains why sales were in the slow lane and how they rose to 768 units in 2006.

In March 2009, Skoda launched the 2nd generation CKD-assembled Superb with a 1.8L TSI petrol engine for ₹ 18.4 lakh, with a lot of features and safety equipment. This was followed by the 2L TDI PD diesel launch at ₹ 21.5 lakh and the 3.6L petrol V6 FSI 4×4 at ₹ 24.7 lakh in the next month. Together, this translated into a bumper sales year for Superb in 2010, which was also the highest for this segment.

In 2016, third generation Superb having inspiration from the Audi design language was launched. New design direction lent it a sporty credential over the stately appearance of the past. The best performance in the third generation was achieved in 2021, despite the discontinuation of diesel.

Superb has always provided class-leading leg room in the rear. It was unbeatable even in the two segments above, until the long wheelbase Mercedes E-Class arrived in India (2017). Superb remained the best-selling premium sedan D2 segment. Rolls Royce inspired twin umbrellas and holding case in the doors remain the signature style of Superb.

Volkswagen Passat (2007-2014 & 2017-2019)

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Passat's sixth generation (global) picked up pace slowly in India due to its conservative design language. In 2010, Volkswagen gave an extensive facelift to the Passat globally, and some regarded it as the 7th generation. However, dashboard layout gives away illusionary generational change. Passat gained traction since 2010, but the pace was slow with respect to the competition, and Volkswagen India has to discontinue the product in 2014 due to poor sales. The biggest drawback for the Passat in India was its conservative styling and bland side and rear looks.

Volkswagen India mustered the courage to launch the second generation (India) in an already slowing segment, and packed in a lot of equipment and a powerful diesel engine, but bland styling and a lack of premium brand image took a toll on Passat, and the second generation was forced to be discontinued in less than three years.

Volkswagen Phaeton (2007-2010-2012)

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Some may ask why Pheaton is being categorised as D2 premium sedan. Doesn’t it belong to the luxury segment and share underpinnings with marques like the Audi A8 and Bentley Continental GT?

Well, the world also asked this question: why does it even exist for a brand that means "the people's car" in German?

Globally, over engineered Pheaton’s positioning wasn’t accepted, and nor in India. VW was able to sell a mere 71 units, mostly to its then dealer fraternity.

Nissan Teana (2007-2009-2017)

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Nissan India too followed the top-down product launch approach in India by launching the X Trail (SUV), followed by the Teana in its first phase of entry into the Indian passenger vehicle market. Teana was imported, thus carrying a hefty price tag, and Nissan tried to justify it by offering a V6 petrol engine. Though the interior felt premium and provided a comfortable stay for four passengers, the high price tag and fuel-guzzling engine did not go well with the Indian audience for both generations.

Is there any chance left for the revival of the premium sedan segment in India?

Absolutely no!

The Indian audience has clearly shown a strong preference for SUVs or crossovers and disregarded the very idea of a premium sedan. Any passenger vehicle brand thinking otherwise and wishing to revive the premium sedan segment, will end up wasting their investors’ money.

As for Indians, "Unchi is the new lambi" now!
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Old 6th April 2023, 21:01   #2
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Re: Graveyard of premium sedans

Can't agree more with you. Some think sedans will make a come back, leave alone the luxury ones, a regular sedan will find buyers hard to come in the next 2 to 3 years. It's the era of SUVs and crossovers.
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Old 6th April 2023, 21:57   #3
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Re: Graveyard of premium sedans

Great thread. You clearly have a penchant for numbers, graphs and stats! It makes for delightful and leisurely reading. Keep it coming!

Just a question, are these charts done on Excel as usual or some other software?
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Old 6th April 2023, 22:19   #4
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Re: Graveyard of premium sedans

At least in India, the main reasons behind the downfall of Sedans are the preconceived notions set in the minds of the average car buyer. See, people in India see cars as a status symbol. Petrol heads like us wouldn't want to go with the so-called "Herd Mentality", especially when buying cars.

I believe 90% of Mid Size SUV buyers avoid Sedans because of the 'Badi Gadi Vaali Feeling' that they get from owning a so-called SUV. Only 5% of SUV buyers avoid sedans due to the GC issues and the other 5% avoid sedans due to preconceived notions set in their minds.

The problem is that people buy whatever their friends or neighbors buy. They don't want to try anything that is new or different. This is one major reason why sedans are dying. I think people should buy cars according to their requirements rather than buying a car that their neighbors like because at the end of the day, your requirements and my requirements will be different.
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Old 6th April 2023, 22:21   #5
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Re: Graveyard of premium sedans

The current trend of SUV will also have a down trend in future and longing for the sedan is not going to wither out. However, the future sedan may be completely different from today's design due to following aspects:
  • The onslaught EV and hybrids will change the vehicle dynamics because of lower center of gravity due to floor board placement of battery.
  • The future cars will be more energy efficient and hence, the optimization of the form factor may tweak the present design. We have already witnessed the evolution of three box sedan to present form.
  • The new manufacturing technology and materials will also play a role in shaping the future sedan.
  • The driving becomes lesser engaging and hence, buyers may be focusing on ride quality than dynamics.
There are lots of emphasis on energy efficiency. Machine learning architects like TrebuNet would be definitely focusing on the form factor also.
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Old 6th April 2023, 22:55   #6
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Re: Graveyard of premium sedans

Quote:
Originally Posted by MotorDev View Post
At least in India, the main reasons behind the downfall of Sedans are the preconceived notions set in the minds of the average car buyer.
I humbly disagree. Not only in India, but globally also sedans are facing a mass extinction. Secondly, people have discovered that the hatchbacks and SUVs (both pseudo and proper ones) have more practical and usable space inside. Our family car was an Indica V2 DLS in 2007-09 when our house was under construction. Just me and wifey in front seats with rear seats double folded down, we discovered the car can carry 300+ kg. In those times before the advent of Amazon and free delivery, at least 20K had been saved by using the car to ship things which we bought or collected from cities 40-45 kms away from our town: paint, wheel barrows, welding transformer, Hitachi Aluminum cutter, entire electrical fittings and cables, 29" Philips CRT TV, extra tiles

That was just a hatchback. The XUV500 later was used to bring home a Honda genset, washing machine and a 1.5 ton split AC without breaking a sweat. I can only imagine what a Fortuner can do.

Last edited by sandeepmdas : 6th April 2023 at 23:02.
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Old 6th April 2023, 23:12   #7
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Re: Graveyard of premium sedans

Quote:
Originally Posted by MotorDev View Post
At least in India, the main reasons behind the downfall of Sedans are the preconceived notions set in the minds of the average car buyer. See, people in India see cars as a status symbol. Petrol heads like us wouldn't want to go with the so-called "Herd Mentality", especially when buying cars.
Well said.

I ask a simple thing: what is a 'sedan' as juxtaposed next to 'meri gaddi'?

What is/are a 'sedan's' capabilities?

Answer these two and we all can together find an answer.

All brickbats welcome.

-------------------------

My personal opinion: If you seek capabilities, go for vehicles with capability. Do not bother what others call it: micro-mini, SUV, Indian-SUV, sedan, convertible, and all those in between.

And yes, I have been told that a Duster is an SUV in 'Hamara Bharat Mahaan'. So, used the phrase Indian-SUV.

If you DO NOT seek capabilities, stop looking at four wheelers as 'sedan' or 'suv'.
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Old 7th April 2023, 08:17   #8
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Re: Graveyard of premium sedans

Great analysis as always, pqr . Your thread is going to our homepage today. The death of sedans started in the D1 segment (Altis, Civic etc.) and I had written an article on the D1-sedan death in 2012 - thread link (The Diminishing Value of D1 Segment Sedans (Altis, Cruze, Civic, Laura et al)).
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Old 7th April 2023, 09:10   #9
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Re: Graveyard of premium sedans

A very well thought out and informative article there . Sadly, the SUV-fication of the market is here to stay with even MSIL promoting Lord-spresso as a small SUV and same goes for the jacked up hatchbacks we have available to consumers today. Its all about demand and supply.

I really hope though the D1 and D2 segment makes a comeback , even if it is wishful thinking on my part as the feeling of luxury and comfort of a good sedan vehicle cannot be matched no matter how big your SUV is, a lambi gaadi is still a lambi gaadi for people like me.
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Old 7th April 2023, 09:16   #10
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Re: Graveyard of premium sedans

Fantastic thread - one of the best on both content and formatting I have seen in recent times.

The D segment sedan unfortunately got trapped in a vicious cycle - low volumes meant these products stayed as CKDs and did not offer enough of an Upgrade compared to the C segment sedan. Further with the increased acceptability of being seen in a luxury car, most of those (eg your truly) who had previously bought D sedans moved to luxury brands. The trend towards crossovers was the last nail on the coffin. Wonder how long the CKD D segment crossovers will last - their volumes are tiny too and they could be the next group to exit India
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Old 7th April 2023, 09:21   #11
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Re: Graveyard of premium sedans

I am going to disagree with the general consensus here. The reason sedans lost out was simply because the manufacturers did not update them with time and/or made blunders - either with pricing or positioning or something as basic as reliability and downtime.

Every single sedan listed here is at fault for fouling its basic value proposition at some time, and then paying the price in terms of dropping sales. Be it Renault and VW overplaying the premium card or Honda not offering diesel when the Accord and Civic were hot and market sentiment was shifting, to Skoda not updating their bread and butter 2.0 TDi to BS6 norms, to Toyota selling 3 generations of Corolla/Altis without making mechanical updates and then loosing the value proposition with the overpriced Altis. VW group’s notorious reliability issues and long downtimes did not help reputation either.

Fact is that the oonchi gaadis simply offered better powertrains, more features and more options at slightly higher prices. Their success is built on manufacturers clearing the way for them by not keeping the sedans up with times, and pocketing the extra premium in process. Helped along by the herd mentality of most Indian buyers. I see this as a cycle. Manufacturers pushed the sedan value proposition too far, and now they are pushing the SUV too far with ever increasing prices for incremental updates. Market is ripe for disruption, again.

The consistently selling City (another car that hasn’t seen real mechanical updates for 15 years), and fairly well received Virtus Slavia and the newly launched Verna show that there is still love for sedans. It is for manufacturers to not be arrogant+complacent and get the overall value positioning right.

Last edited by Shreyans_Jain : 7th April 2023 at 09:37.
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Old 7th April 2023, 10:34   #12
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Re: Graveyard of premium sedans

Quote:
Originally Posted by Shreyans_Jain View Post
Every single sedan listed here is at fault for fouling its basic value proposition at some time, and then paying the price in terms of dropping sales. Be it Renault and VW overplaying the premium card or Honda not offering diesel when the Accord and Civic were hot and market sentiment was shifting, to Skoda not updating their bread and butter 2.0 TDi to BS6 norms, to Toyota selling 3 generations of Corolla/Altis without making mechanical updates and then loosing the value proposition with the overpriced Altis. VW group’s notorious reliability issues and long downtimes did not help reputation either.
Agreed.
In terms of manufacturing cost, there is unlikely to be a significant difference between producing a hatchback, sedan, crossover, or MPV, as long as all other factors such as features, wheelbase, and powertrain remain the same.

Crossovers can be seen as a larger version of a hatchback, but the practicality of the hatchback body style is often superior to that of a sedan, which is why it remains a popular choice for many drivers.
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Old 7th April 2023, 11:13   #13
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Re: Graveyard of premium sedans

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Originally Posted by sandeepmdas View Post
I humbly disagree. Not only in India, but globally also sedans are facing a mass extinction. Secondly, people have discovered that the hatchbacks and SUVs (both pseudo and proper ones) have more practical and usable space inside.
Couldn't agree more. Sedan sales have plummeted in the US as well, with Crossovers dominating the charts.
As the post above says, you can really expand the usable space inside a hatchback/SUV by dropping the rear seats, and they are also usually easier for entry/egress compared to low riding sedans, especially for older people.
The sound of the vehicle bottom scraping the road is not something anyone wants to hear, which is the unfortunate reality with sedans on our city roads.
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Old 7th April 2023, 11:42   #14
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Re: Graveyard of premium sedans

Amazing data analysis & thread in general. Thanks for that!

Personally I feel that the auto-makers actually contributed heavily in the sedans dying, especially in our market. Especially right now. Our market in my opinion is just about coming of age. People have started having much more buying power than they did a decade ago. The people who had bought smaller cars previously are all now aspiring for premium upgrades, not necessarily into SUV segments. In fact the fast paced millennials are now in the market looking for something fast, with money in their pockets to spare.

The car makers should have kept faith in the sedan segments D1/D2 in India for another couple of years. I strongly feel the market for them was just about to open, like it never did before in India. Extremely angry with VWAG for pulling out the Jetta (2017) followed by Octavia and Superb now. Its like destroying a crop, just before it was ready for harvest. (Yes - I'm especially cross about it - because just when I started thinking of getting a fast and beautiful sedan in near future - they are vanishing . Finally when I may be able to actually afford one - there won't be any!).

Last edited by Reinhard : 7th April 2023 at 11:43.
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Old 7th April 2023, 12:03   #15
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Re: Graveyard of premium sedans

As mush as I love sedans, and also currently own a few, I do get frustrated with the lack of utility they come with.
Most recent example, I couldn't fit a new TV in the cars or their boots. If only there were drop down seat backs then perhaps I could.

Sedans look posh, go well with my personality but for all DIY and manly jobs, I have to borrow someone's XUV 5OO or an Innova.

For those of you who own the 2nd gen Jazz or the 3rd gen pre-facelift with magic seats, never let it go. The utility and space offering is at par with any crossover or true blood SUV!
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