ZigOpinion: Badge Engineering: What Is It?

They say imitation is the sincerest form of flattery. So, what better way to imitate something that’s perfect and needs no change? Well, that’s how badge engineering was actually conceptualised.

Badge engineering isn’t a new concept in the Indian automotive scene. Over the years, we have witnessed the Daewoo Kalos sold in India as the Chevrolet Aveo, the Renault Logan transformed into the Mahindra Verito, and the Daewoo Matiz repackaged as the Chevrolet Spark. The trend even crosses borders, with the erstwhile Morris Garages taking our cherished Tata Indica and presenting it as the MG City Rover in the United Kingdom.

So, what exactly is it? Let’s find out in today’s ZigOpinion: 

WHAT? 

Badge engineering refers to the process of picking an existing vehicle and rebranding it under a different nameplate. Essentially, manufacturers swap badges, sometimes tweak a few design elements or features, and then market the car as if it is one of their own products. 

Developing an entirely new product is an expensive and time-consuming process. There are a lot of processes, like R&D, crash testing, and compliance with ever-evolving regulatory requirements. 

Badge-engineering is a hacky way to fill a gap in one's own product lineup without investing in the time, research and expense of developing a completely new model. In such situations, a royalty is often paid to the original manufacturer for sharing their product. 

MORE IMPORTANTLY, WHY?

Badge engineering allows brands to share development costs, enter new market segments quickly, and boost their brand portfolio with minimal risk. It is also a way of leveraging someone else’s expertise and gaining access to a formula that’s proven to work. 

In many cases, the original manufacturer manufactures the vehicle for the other brand. For example, the Glanza, Taisor and Rumion are produced in a Maruti Suzuki facility for Toyota. Similarly, Toyota manufactures the Invicto for Maruti Suzuki. 

Here, we see Toyota capitalising on Maruti Suzuki’s expertise in building compact cars in the sub-Rs 10 lakh segment. On the other hand, Maruti Suzuki benefits from Toyota’s know-how of building a premium people mover. If both brands were to develop products for these segments individually, it’d be an expensive affair for everyone involved. 

In case you were wondering why these global brands ‘copied’ products from each another — they did not. They’re literally making them for one another. 

Next Step? 

The next-step in a badge-engineering venture is usually a ‘co-developed’ product. Let’s take the example of Maruti Suzuki and Toyota once again. In the case of the Grand Vitara and Urban Cruiser Hyryder duo, we see Suzuki’s ‘Global-C’ platform and 1.5-litre petrol engine, and Toyota’s 1.5-litre Hybrid engine. 

Both Japanese brands joined forces to create a product that offers the best that both brands have to offer. Both these SUVs are manufactured by Toyota at its Bidadi facility in Karnataka. 

Skoda and Volkswagen have a smart strategy. Since both brands are part of the same parent company, they share platforms, engines, and even manufacturing facilities. This helps them save costs while offering different models that are quite similar, i.e. Slavia - Virtus and Kushaq - Taigun, which are quintessetinally the same producsts with different styling and a bit different equipment, judst to appeal to different set of buyers.

By selling cars under two separate brands, they cover a wider range of customers while still using the same core technology. This way, they have more options in the market, making it tough for competitors to gain a foothold. Skoda-VW has practically taken over the sedan segment since their approach ensures that, together, they take up a big chunk.

India’s History with Cross-badged Cars

India’s flirtation with badge engineering began decades ago. One of the earliest instances was in the year 1957, when our beloved Hindustan Ambassador was introduced in India, which was actually a rebadged Morris Oxford III. 

Hindustan Motors went on to introduce India’s first muscle car, i.e. the HM Contessa, which too was a badge-engineered Vauxhall VX Series. 

Other popular Indian cars that had counterparts from a different brand

• Maruti Suzuki WagonR (sold as Opel Agila in Europe, Mazda AZ Wagon in Japan)

  

• Maruti Suzuki Ritz - sold as Opel Agila in Europe

  

• Chevrolet Spark/Beat - sold as Daewoo Matiz in South Korea

  

• Chevrolet Tavera - sold as Isuzu Panther in Indonesia, Philippines and Vietnam 

  

• MG Hector - sold as Wuling Almaz in Indonesia

  

• Maruti Baleno - sold as Toyota Starlet in South Africa

  

A Win-Win Situation?

Badge engineering was always a common practice. Going forward, it will become the norm. As new age manufacturers such as Tesla and BYD disrupt legacy players, many are forced to join hands to simply survive. We’re sure you’ve read about a (now called-off) Honda-Nissan merger, or even major brands such as Peugeot, Citroen, Opel, Fiat, Chrysler, and Jeep coming together to form the Stellantis group.  

Stringent emission norms, heavy investment requirements and more such factors do compel manufacturers to join hands and the easiest way to start a partnership is to play to individual strengths. Ultimately, it is the buyer who benefits from more choice in terms of design, experience and brand. This sadly often comes at the expense of a vehicle’s identity and personality — which most mass-market buyers don’t seem to care about.

Would you be open to see more badge-engineered products in future? Let us know in the comments.