How Car Manufacturers Fool Us

sparkplug · 16th January 2009, 18:49

Don't know how members will react to this post, but I thought we all share on how car manufacturers fool us.. many times in context of 'for Indian market'.

To start with....

Hyundai:
Verna is supposed to be the facelift of Ascent. And both the cars exist in this market in different segments.

Verna (7-9 Lac) & Ascent (5-7 Lac).

If it were a facelift across the globe, do we need to pay an premium when the world is not? On top of it Verna is featureless (sorry I say it always).. should we pay 2 Lacs as only for its engine? No doubt its the best engine.. but...

Skoda:
Same -- Octavia & Laura. Laura supposed to be an facelift to Octavia. Look at the price gap... Octavia (10-12L) and Laura (14-17L). Laura again has host of features.. but @ 40% expensive.

Technocrat · 16th January 2009, 19:28

Nothing new

Maruti has been doing it for ages, Read Here

esteem_lover · 16th January 2009, 19:34

Same with the Alto, Swift etc, but we still love all of them.

Volt · 16th January 2009, 19:35

Only Toyota and Honda have had the courage to pull out bestsellers and replace them with contemporary models rather than continue with both the outgoing and the replacement cars. The others simply milk the old models (and us consumers) for all they are worth.

narayan · 16th January 2009, 19:37

Dont quite understand where the "fooling " is happening ?

Accent was launched at much higher price - used to sell around the same price as OHC/IKON/CIELO at that time

with VERNA - ur getting not just an engine upgrade - more features, better looks etc etc

vasudeva · 16th January 2009, 19:37

Difficult to fool if someone has the knowledge not to be fooled. Consumers have a choice to vote with their wallets (Zen Estilo???) and that choice will remain as long as manufacturers are not putting a gun on their head.

Interesting thought: when Verna was launched, Hyundai had intent to pushing down Accent and not marketing it. It suddenly looked and felt old. However, after Verna stabilised and started declining, suddenly Accent got a push. Perhaps if Verna was priced lower and Accent phased out, Hyundai may have got better volumes in the segment than they are getting now.

greenhorn · 16th January 2009, 19:38

I think someone needs some basic economics lessons

Altogether · 16th January 2009, 19:52

Same thing is haapening with Honda City and All new Honda city. Except the airbags, and the facelift, it costs almost 1-1.5 lack than the 10th Annivarsery edition.

Fountainheader · 16th January 2009, 20:21

*yawn* at the original question

But Honda doesn't plan to sell the NHC and the ANHC at the sametime. Now that the stocks havent cleared out is a different issue altogether.

abhi1309 · 16th January 2009, 20:29

Quote:

Originally Posted by greenhorn

I think someone needs some basic economics lessons

Exactly. The localization takes time. Accent has been there for a long time of course localized much more than the Verna. So the price is down comparatively. Verna will be the same after 3 years and a new car will come. Where is the "fooling" here.

Some one needs auto industry lessons as well.

Rocky_Balboa · 16th January 2009, 21:22

Yawn...

Quote:

Originally Posted by esteem_lover

Same with the Alto, Swift etc, but we still love all of them.

Was Swift a facelift!?

Where have You been John!

+Rocky+

cruiser_1982 · 16th January 2009, 21:30

Quote:

Originally Posted by abhi1309

Exactly. The localization takes time. Accent has been there for a long time of course localized much more than the Verna. So the price is down comparatively. Verna will be the same after 3 years and a new car will come. Where is the "fooling" here.

Some one needs auto industry lessons as well.

Except the Sonata, all other cars from the Hyundai stable are highly localized.It is just Hyundai/maruti are trying to position themselves as premium Carmakers after selling loads of entry level cars.

They just can't emulate the Hondas or Toyotas. They need a separate brand if they want to command premium, just like LEXUS, ACURA and Infinity for Toyota, Honda and Nissan respectively.These Japanese car makers learnt the same lesson in the past few decades In North American Auto Market.

Superleggera · 16th January 2009, 21:37

As long as there are buyers for a product,the manufacturer can sell it.

cruiser_1982 · 16th January 2009, 22:19

Just remembered this talk I had with an employee in a managerial cadre in Hyundai Car plant in Chennai. When the Hyundai I20 was being tested and made ready for Mass production, Hyundai was planning to price the I10 variants around 30K more than the similar Santro variants and slowly phase out the Santro.This was shared with the Dealership network and it was the dealerships that convinced Hyundai on the higher price model.

Looks like they took a great decision, the car is selling like hot cakes and the margins are high as well. Would I call us all fools?

salilpawar1 · 16th January 2009, 22:26

Quote:

Originally Posted by Rocky_Balboa

Yawn...

Was Swift a facelift!?

Where have You been John!

+Rocky+

At one point of time, two generations of the Swift (i.e. Esteem and Swift) were sold together. How can esteem_lover be wrong on that count?

16th January 2009, 18:49	#1
sparkplug BHPian Join Date: Oct 2008 Location: Mumbai Posts: 42 Thanked: Once	How Car Manufacturers Fool Us Don't know how members will react to this post, but I thought we all share on how car manufacturers fool us.. many times in context of 'for Indian market'. To start with.... Hyundai: Verna is supposed to be the facelift of Ascent. And both the cars exist in this market in different segments. Verna (7-9 Lac) & Ascent (5-7 Lac). If it were a facelift across the globe, do we need to pay an premium when the world is not? On top of it Verna is featureless (sorry I say it always).. should we pay 2 Lacs as only for its engine? No doubt its the best engine.. but... Skoda: Same -- Octavia & Laura. Laura supposed to be an facelift to Octavia. Look at the price gap... Octavia (10-12L) and Laura (14-17L). Laura again has host of features.. but @ 40% expensive.
	() Thanks

16th January 2009, 19:28	#2
Technocrat Senior - BHPian Join Date: Feb 2004 Location: GTA Posts: 14,813 Thanked: 2,700 Times	Nothing new Maruti has been doing it for ages, Read Here
	() Thanks

16th January 2009, 19:34	#3
esteem_lover Senior - BHPian Join Date: Jul 2006 Location: Madras/Py Posts: 7,556 Thanked: 502 Times View My Garage	Same with the Alto, Swift etc, but we still love all of them.
	() Thanks

16th January 2009, 19:35	#4
Volt BHPian Join Date: Sep 2008 Location: Mumbai Posts: 183 Thanked: 5 Times	Only Toyota and Honda have had the courage to pull out bestsellers and replace them with contemporary models rather than continue with both the outgoing and the replacement cars. The others simply milk the old models (and us consumers) for all they are worth.
	() Thanks

16th January 2009, 19:37	#5
narayan Senior - BHPian Join Date: Aug 2006 Location: Singapore Posts: 3,114 Thanked: 2,372 Times View My Garage	Dont quite understand where the "fooling " is happening ? Accent was launched at much higher price - used to sell around the same price as OHC/IKON/CIELO at that time with VERNA - ur getting not just an engine upgrade - more features, better looks etc etc
	() Thanks

16th January 2009, 19:37	#6
vasudeva Senior - BHPian Join Date: Mar 2007 Location: Delhi Posts: 2,221 Thanked: 212 Times	Difficult to fool if someone has the knowledge not to be fooled. Consumers have a choice to vote with their wallets (Zen Estilo???) and that choice will remain as long as manufacturers are not putting a gun on their head. Interesting thought: when Verna was launched, Hyundai had intent to pushing down Accent and not marketing it. It suddenly looked and felt old. However, after Verna stabilised and started declining, suddenly Accent got a push. Perhaps if Verna was priced lower and Accent phased out, Hyundai may have got better volumes in the segment than they are getting now.
	() Thanks

16th January 2009, 19:38	#7
greenhorn Senior - BHPian Join Date: Apr 2007 Location: KL-01 Posts: 7,744 Thanked: 4,387 Times View My Garage	I think someone needs some basic economics lessons
	() Thanks

16th January 2009, 19:52	#8
Altogether Newbie Join Date: May 2008 Location: Bangalore Posts: 21 Thanked: 0 Times	Same thing is haapening with Honda City and All new Honda city. Except the airbags, and the facelift, it costs almost 1-1.5 lack than the 10th Annivarsery edition.
	() Thanks

16th January 2009, 20:21	#9
Fountainheader Senior - BHPian Join Date: Feb 2008 Location: Silicon Valley Posts: 1,501 Thanked: 13 Times View My Garage	yawn at the original question But Honda doesn't plan to sell the NHC and the ANHC at the sametime. Now that the stocks havent cleared out is a different issue altogether.
	() Thanks

16th January 2009, 21:37	#13
Superleggera BHPian Join Date: Mar 2007 Location: Kannur/Boston Posts: 531 Thanked: 816 Times View My Garage	As long as there are buyers for a product,the manufacturer can sell it.
	() Thanks

16th January 2009, 22:19	#14
cruiser_1982 BHPian Join Date: Dec 2008 Location: Chennai Posts: 313 Thanked: 16 Times	Just remembered this talk I had with an employee in a managerial cadre in Hyundai Car plant in Chennai. When the Hyundai I20 was being tested and made ready for Mass production, Hyundai was planning to price the I10 variants around 30K more than the similar Santro variants and slowly phase out the Santro.This was shared with the Dealership network and it was the dealerships that convinced Hyundai on the higher price model. Looks like they took a great decision, the car is selling like hot cakes and the margins are high as well. Would I call us all fools?
	() Thanks