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Stripped-down versions of cars, the new IT thing!
Posted on 13 Jul 201232,873 Views5 Comments
Carmakers, including Skoda and Honda, launch stripped down versions of premium models as demand softens
Car manufacturers are launching stripped-down versions of some of their existing premium models in a bid to boost sales and be price-competitive amidst soft demand conditions.
Recently Skoda Auto India launched the Superb 'Ambition', Honda Siel a 'Corporate' edition of City and Tata Motors a '4X2' version of its crossover vehicle, the Aria. Carmakers are retaining safety features like ABS and airbags in these models. They are also not tinkering with the engine specifications. The features that are getting the axe - thereby helping reduce price - are bells and whistles like parking sensors, xenon lights and sunroofs.
"Stripped-down launches are purely driven by cost. Either the product is not selling enough volumes or it is not too profitable," said Rakesh Batra, national leader - automotive sector, Ernst & Young.
Czech car maker Skoda introduced changes in the Superb Ambition with a starting price of Rs 18 lakh for the 1.8 litre variant (ex-Delhi showrooms). That's Rs 1.6 lakh lower than the Superb Elegance, which is priced at Rs 19.6. Similarly, Skoda Auto India has launched the 2-litre variant of the Ambition for Rs 22.5 lakh - Rs 1.5 lakh cheaper than the Elegance with the same engine.
So what's different between the two cars? The Ambition does not have fancy stuff like a sunroof, a touch-screen audio, front parking sensors, cruise control and Bluetooth connectivity. Companies for their part see the cut-price versions as a means to extend the model line. "The variant, while retaining the Superb's values in comfort, safety and efficacy, opens the doors of opulence for the customer seeking excellence at a great price," said Kamal Basu, head of marketing, Skoda Auto India. Superb sales stood lower at 353 units in the April to June quarter as against 717 units in the previous year's corresponding period.
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Readers' opinions ( 5 )
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Siva
Do the car makers think customers are bargaining for 1 lakh while buying a car whose cost is almost 20 lakhs and for 60k whose cost is around 8 lakhs,Sounds so stupid for me. It would have been more appropriate if the article had disclosed the number of these so called stripped down versions of those cars were sold....
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Kinshuk
Superb TSI is not at a reliable car at all and its has serious Mechatronic failure issues , till its under warranty then its all fine once its done then a very hefty price you need to pay to sought out mechanical failures and repeatedly , buy diesel Superb instead which is rock solid performer
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Girish
This definitely looks like a sponsored article. You should start marking such articles as ads.
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shammi
Difference of 1 or 2 lakhs is nothing , it should be minimum of 5 to 7 lakhs who a customer to buy
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Billu Moria
Do the Automakers think buyers are that stupid? A difference of 1 to 2 lakhs means nothing when you are buying a car above 10 lakhs. A difference of 5 lakhs and above would have meant a better market. I feel many of these automakers just don't undersatnd the market. Agreed that they do lots of market research. But how many people and what kind of cross section is really interviewed to obtain results is still a question!!But instead of these reductions if they can give cars which will run cheaper (Hybrid/alternate fuel with little or no maintenance) for a long time then that is something people will appreciate and buy.
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