Re: Rumour: Audi to launch A4 1.4L TFSI. EDIT: Q3 too Quote:
Originally Posted by ashis89 Slightly OT:
With this onslaught of models and smaller petrol engines, the entry level prices would come down further I believe. If true, this would further dilute these 3 German brands. Since typical buyers look at the brand than the VFM proposition of these products, dilution of the brand presence might not be so good. This may not go down well with buyers who used to look at exclusivity.
On the other hand, this should boost the volumes for the manufacturers and the dealers alike, keeping them happy. |
Well up until now the big three have resorted to increasing prices across the segment to accommodate mid-life refreshes and next-generation launches. So if you think about it, the prices have not really been reduced. The 3-series/new X1 is still a pretty exclusive car to purchase/own and the same perception only gains strength as one moves up to higher segments and the products there-in.
What will redefine status quo in this segment is the pricing of the new A4. Up until now, the entire Audi brand was perceived to be accessible only to the uber-rich/corporate buyers by a majority of car owners in the country.
However, if Audi prices this well and on the merit of the product (read, markedly lesser than the 320i which starts around 37 lacs for the base variant, discounts not considered) more people might consider it. Which would be good for everybody. It would increase sales - which is what the OEM wants at the end of the day. Brand dilution does happen, but it's extent would be limited because the remainder of the product range still remains aspirational for most, so present and future buyers do not feel short-changed.
What would break this product would be if Audi prices the 1.4l A4 on-par with the 320i, which would be an extremely stupid move and I don't think they would do it. It would basically mean an increase in 320i sales for BMW.
I feel this change is for the good.  Want the brand experience but within a limited budget, pay less and accept a mediocre engine as a compromise. Want a great driving experience (as well as brand value) and have a fat wallet to go with it, pay more and you get what you pay for.  |