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The answer is very clear , its just the Badge . We ve always been paying the premium for the badge ,but for how long ??? I think now is the high time , we should better start comparing cars rather than Badges .
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Well why are then we buying on badge value? Its simple to understand, these badges have consistently delivered quality over the years and have built themselves to that stature. Its taken companies like Toyota and Honda a good 50 years to achieve that recognition. Everything takes time, even recognition. If it weren't so, most CEOs would have been 21 or 22 years of age. Recognition comes with age. Today people blindly buy Toyotas and Hondas cuz they know that the product will be good. And its been true.
You believe that the Corolla is overpriced. So do I. But then it ain't the world's best seller just like that, it sure must have done something right to be there, hasn't it? From a true enthusiast's point of view it probably loses, but elsewhere it does perform. It has an engine that can go on till eternity, parts that last, quality that speaks and what not. At the end of the day, its a package that makes a lot of sense. Hyundai cars don't. When you offer 4 years and 80,000 kms warranty packs one thinks that something is amiss with the company and that they are trying too hard to prove themselves that they are good. Thats why an Elantra doesn't sell. Why, even after Rs.1,50,000 cash discounts they don't, which in my opinion makes the car a virtual steal. Look, there is a point where people won't buy a car because you offer them discounts. And the C++ segment clearly is that one. And so are the segments above it.
Hyundai hasn't tasted clear success in the segments above C because they haven't developed sound engineered cars. Making cars that perform averagely in all aspects is one thing that people in lower segments will accept, but as you go up the ladder people have bigger whims and fancies because they are spending a lot of dough on their cars. If they are just average cars and not great in any particular area, don't expect them to sell. One reason why Audis don't do well in certain markets and beemers and mercs do.
The customer here isn't a fool not to buy an Elantra and buy a Skoda or a Corolla instead. Understand the psyche behind why they do so. No one is saying that the Elantra is a bad car, infact if i were in the market for a car in that segment, i would sincerely give it due consideration cuz it is quite a capable car. But how has the company positioned it? India's first luxury sports sedan..... what POS. And if you are to spend 3 lakhs extra over an Accent for a car that resembles the Accent a lot, why bother upgrading. Another reason also why though the Octy is a success, the Superb aint' cuz it looks like its younger sibling. I
t isn't always just about the car, but how companies work towards launching them. We are human beings, fickle minded at the end of it all. If something is done that doesn't seem right or sound right, we won't respond to it, no matter what one does. Same applies to cars and Hyundai as well!
Revv