Imagine yourself to be someone in the age bracket of 45+, a man with 2 kids; both about to go into adulthood, a sprawling business and a house to match your lifestyle.
You own two cars, an Esteem and a Honda City 1.5. The Esteem is just a year old while your City is 3 years old. You like the city because its a Honda, no-nonsense car and a cheek to drive. But you want to move up in life. Prove a point? Probably yes.
So you decide what's best for you. You know that the Mercedes C-Class is the best way to prove a point. But at Rs. 25lakhs+ it isn't exactly cheap. Also, your best buddy just bought one 8 months back and is running maintenance bills *that are reaching stratospheric heights. So you decide against it. But yes you are willing to go in for a car that is realtively cheaper to buy and maintain and gives you the kind of bulletproof reliability that the City has given you so far.
You decide a budget. Around Rs. 16-18 lakhs. You analyse the alternatives. Its the Skoda Octavia Lauren and Klement, the RS, the Honda Accord 2.4 VTiL, the 3.0 VTEC and the Ford Mondeo. The Lauren and Klement is great to have, but too small. You don't need a really fast car, adequate speeds are ok. So you decide against the RS and 3.0. The Mondeo doesn't have good re-sale values and neither does it have great reliability. So you opt out. Finally you choose the Accord. And you get your cheque book out and head to the nearest Honda showroom. Like 200+ customers every month, you think you've made the right decision. And you have!
Its a long story to get to a point, I know. But I had to do it, because this is the buying process that every person looking to buy in that segment goes through. There are more details, but i have missed them since i don't wanna bore you. In most cases than not the Accord is chosen, the customer is happy and life moves on. But strangely the case is not the same for its nemesis, the Camry.
The Camry today is going for discounts in the range of Rs. 2- 2.5 lakhs, something that Toyota would dare not have done a year back. Most sales still happen in institutions, i.e. Private taxis, fleet cars and lease management companies like Orix. But private car buyers and top management honchos seem to stay away from the car. So what's going wrong with the Camry and why is it that Toyota is unable to move it off the showroom floors.
I think the recent price revision has shown a major kink in Camry's armour. Price. At Rs. 4 lakhs+ more than the Accord, it doesn't offer anything more tangible than the Accord, except a few more millimeters of space. Its capacious all right and has a rear back seat that can shame quite a few bedrooms in Mumbai, but that isn't a justification for such a premium. Don't get me wrong, the Camry is a brilliant car, it can give the Accord a tough fight on all fronts, but it just can't justify this premium. And thats what runs through the mind of any buyer even at this price range- VFM.
So would Camry at the same price sold even more if it were badged a Lexus? Probably so. But till its badged a Toyota, it needs to get its price down. Thats as much as people can pay for a brand like Toyota. It holds good brand equity, but can't justify it beyond a point.
That's life i suppose. And that's the rules of business as well.
Post in your comments. Also, give in your suggestions for what Toyota should do?
Revvmaster |