Stripped-down versions of cars, the new IT thing!

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. 

Honda Siel launched the City Corporate edition at Rs 7.2 lakh (ex-showroom Delhi), with the next (E) grade priced at Rs 7.8 lakh. The stripped-down variant of the Honda, which is cheaper by Rs 60,000, comes without an audio system and speakers, silver/chrome garnishes, mudguards, aluminium finish and the centre console panel. The Corporate edition sports black handles and black outside rear view mirrors; in the E grade model they are body-coloured. It also has black interiors instead of beige as in the E grade. 

"We felt there was an opportunity to reach a wider audience at a lower price and thereby garner incremental numbers. The City still is an aspirational model and at this price point it gives an opportunity for more customers to own the City who otherwise would never be able to own one," said J Sen, senior VP, marketing Honda Siel. 

With diesel models selling more than petrol variants because of the massive price differential in the two fuels, most of Honda's models including the City have been having a rough ride. Sales of the mid-size sedan have begun to look up after the launch of the Corporate edition. In the April to June quarter, Honda sold 5,845 City as against 3,370 units a year ago.