Re: Skoda aims to sell over 60,000 units in 2022 What many automakers seem to get wrong but Kia and SAIC UK got right is that the Indian market is NOT cost conscious but value conscious. It is what I would call the "corriander paradox" where the free Rs 5 worth coriander (After buying Rs 1,000 worth of veggies) determines if a veggie shop does well or no and eventually every such shop caves in and offers this, here the quality of the produce is important, the pricing is important but also equally important is the "what is the value add here".
Rather than call the Kushaq overpriced, I would fault its value : cost mix. The Kushaq could be priced even Rs 1-2L higher and still do great numbers but it needs to bring in more value - maybe size, maybe what the forum mostly refers to in a derisive manner, "the bells and whistles, Diwali lights etc etc.
We can sit here and argue till the cows come home on how the Kushaq is dynamically superior (which if it is, it might be marginally so) to the Korean siblings or MG but to 95% of the customers who are in the market for a 16-25l csuv, they want to know what is it hat Kushaq does the others dont.
Is it larger? No
Is it a hugely inspirational brand like the big 3 Germans? No
Does it at least offer a diesel? No
Phir VFM kidhar hai? Let me hop over to the nearest Korean showroom or MG or Tata (for the Harrier)
Don't just take my word for it, just consider how TaMo changed its fortunes around entirely! It produces cars that are a segment bigger (Harrier) and loaded to the gills with all the bells and whistles - where even TaMo fails to do so, the numbers reflect it.
The Harrier pre bells and whistles stage (BS4) on launch month sold 2,500 units approx, then dropped like a rock hitting sub 1,000 units in July, Aug and Sept before stabilising around 1,200.
And this was in a pre covid economy.
Then Tata goes back to the drawing board, throw in a higher powered engine (big vfm point), pano sunroof and other bells and whistles and Apr 2021, just the Harrier was at 1,700 units, in May the Harrier and Safari combine was pushing 3,000 units comfortably. Starting the BS6 launch just the Harrier has been consistently climbing the sales charts, breached the 2,000 mark in Sept 20 and stayed there till Mar when it dropped because the Safari picked up some of its volumes but combined they are now consistently breaching the 3k Mark.
The MG is a runaway success story and I don't even need to mention it, here is a +20l avg sticker price car consistently selling 4,000+ units.
So it is NOT money that is a challenge, but the value or perceived value that a product adds.
VAG and enthusiasts in our forum might argue passionately about how these are an enthusiasts car or whatever till the crows come home to roost but it won't sell period!
If Skoda are serious about gaining volumes in this market, then they would have to launch a Skoda Kushaq 2.0 (like TaMo and Harrier 2.0). Add in all the missing features, hold the price steady AND then the numbers will start flowing. If their economies of scale won't permit it, then am afraid the market will cause this also to be a failure.
Btw apply the TaMo Harrier story to any car and you can determine why it failed or suceeded.
Take the Magnite, the Nissan / Datsun brand was an absolute pariah right? Yet Nissan did its homework, launched the brilliant Magnite, priced it at the perfect sweet spot, gave it a competent engine, LOADED it with all the bells and whistles and the kitchen sink and are now laughing all the way to the bank. I have colleagues (3) who picked up a Magnite who 6 months ago would have not even heard of or touched a Nissan with a 1000 feet long barge pole. And no, 99% of the average layperson car market don't spend time on autoforums like we do, so the horror ASS stories don't really matter - don't believe me, ask Nissan and how its Magnite has become a runaway success. ASS and network size is really not a factor as long as there is a showroom and service centre within easy (say 10-15 kms) reach. Heck MG had ONE showroom in Chennai till recently and sold its Hector in decent enough volumes.
The Kicks was a "superior dynamic platform" compared to the likes of the Creta but it never sold...why? The Corriander Paradox!
As a person who passionately wants the larger Indian auto market to move on from Maruti and Hyundai (only when they drop their market share to sub 30-40% combined will I believe the market evolve faster and more dynamically), I was sincerely hoping that Skoda would pull a Harrier 2.0 or Magnite out of their hat but in my limited opinion they severely dropped the ball.
My prediction is that on launch month + 2 it might hit 2,000-2,500 units and then plummet to around the 1,000 mark and stay there.
Last edited by Stribog : 2nd July 2021 at 10:20.
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