Top-end cars race past base models | Science and Technology News | Earth Science Articles | Updates Technology news | Technology Article | News | Latest News | News Today | International Reporter

Vol XXXVIII (No. 9), 02 Sep 2010
News Search  


Top-end cars race past base models


MIL/ET Bureau, Jun 25, 2009


New Delhi: June 25, 2009 -  Automakers in India are being forced to change their strategy for their multi-variant models, following sales coming largely from their 
top-end variants.

According to industry experts, the availability of high-tech features like anti-lock brake system, air-bags, auto temperature control, engine immoboliser, alloy wheels, tripmeter, power windows, computerised locking and specific metallic colours are luring customers to buy higher-priced models.

Right from Maruti Suzuki, which sells every second car in India, to Tata Motors, Honda Siel Cars, Toyota Kirloskar Motors (TKM), General Motors, Hyundai have seen top-end variants of their most models fanning out high numbers than their entry-level siblings.

Taking a cue from the customers choice for the top end 1.5S variant for its flagship City Sedan, Honda Siel cars has planned to phase out the base 1.5E variant as sales were dwindling. A majority of the Honda customers opted for the higher 1.5S City variant.

"The 1.5S City make for more than half of the total sales. There was no rationale to continue with the base variant, whose demand is a mere 10-15% of the total City sales," said Honda Siel Car India vice-president (marketing) Jnaneshwar Sen.

Maruti, which pioneered the multi-variant strategy in India, has also seen customers driving for top-end models. For its top-end sedan SX4, the top-end Zxi variant forms over 70% of the total sales, while the trend remains the same for Swift DZire sedan where Zxi and Vxi variants sales outstrip the base Lxi. The smaller car Alto's Lxi variant contributes over 56% to the total sales.

Toyota, which had launched an array of new models like the new Corolla Altis and Innova, also saw sales zooming for its premium variants. "We had planned 35% production for the top-end Innova VX, but its actual sales are much over 50%. Similarly, the bulk of the sales for Corolla Alto are coming from the top-end 1.8 GL&V variants. We have re-worked our production plan to increase the output of higher-end variants," said Toyota deputy MD (marketing) Sandeep Singh.

Recently, Tata Motors' revolutionary small car, Nano, surprisingly saw more customers queuing up for its top-end LX variant (Rs 1.72 lakh ex-showroom, Delhi) priced 40% higher than the standard model (Rs 1.23 lakh ex-showroom, Delhi).

Customers were paying extra for LX's metallic paint, power windows, fog lamps and air conditioning. As a result, the top-end variant has bagged more than half of the 2.30 lakh cars booked. Tata Motors has re-jigged its production at Pantnagar to meet customers' preference in favour of the Nano LX.

The trend is visible even in the luxury cars segment. For instance, the higher priced petrol variant of BMW's best selling 5Series sedan finds more takers than its diesel version. And, sales of the diesel version of Mercedes M Class SUV outstrip its cheaper petrol sibling.

The demand for top-end cars has also seen the emergence of the premium hatchback segment in India with a surfeit of launches in the recent past. Maruti's Swift, the largest selling model in the segment, Skoda's Fabia, Hyundai's i20, Honda's Jazz, Fiat's Grande Punto and Ford Fusion — loaded with most of these features — have rolled out one after the other.



Comment & Contribute

Seen something? Heard something? Know something? Please let us know -- by being the reporter yourself.




Comments (0)