[naru80]

Originally Posted by Ragsk747

For some cars the difference between Base variant and Top variant is almost 2x.

The wide price difference is a big boon for auto accessories shops!

There's this guy in Navi Mumbai who has become a Youtube hit for modifying base variants to top end (in terms of trim, audio etc, not safety/mechanics):

https://www.youtube.com/channel/UCO6...X1_WyPw/videos

[Knightrider]

Originally Posted by GTO

However, what I do have a problem with is the blatant "bait & switch". Many times, we see the base variant being launched at a very attractive starting price, but it's never available in the showroom . Its sole purpose was to show a VFM image and bring customers into the showroom. Once in, they realise the base variant isn't being dispatched by the factory at all. Or it is in tiny, namesake numbers.

Totally agree. Latest example of this is Kia Carens. The base variant was launched at 8.99L but was never seen in showrooms. I even doubt if it is delivered to any customer till date.
And then they increase the prices within 45 days of price reveal.

[vellatechie]

It's not a problem since 2X jump isn't for the same engine+gearbox, especially in the case of Kiger, Creta, Carens, etc.

[AKSarkar1]

Originally Posted by Ragsk747

In today's car scene the manufacturers advertise the car at launch with a lower base price. For some cars the difference between Base variant and Top variant is almost 2x.

I wonder is the cost justified. Any views from experts!

For example:
Renault Kiger Base variant RXE MT is 6.85L, where as top variant RXZ CVT Turbo is 12.03L

I am no expert but feel that viewing the prices in terms of multiples i.e. 2x, 3x isn't really feasible. Instead the incremental jumps from one trim to another v/s the value addition in terms of features or otherwise is the right way to view it and this has been the case in recent times.

IMHO would also like to say that some features are also very difficult to assign a value to e.g. the base variant might not get Carplay/AA but the mid-variant which is 50,000 more might get both. On paper, this may seem very steep but such features make driving considerably more safer as compared to a traditional ICE unit.

But I definitely do agree that buying cars and selecting the right variant has become quite tricky as the days pass. I preferred the old Maruti style of LXI (bare bones), VXI (Some creature comforts) and ZXI (All the bells and whistles).

I hope I was able to convey my point and thank you for creating awareness on this trend. For us petrolheads choosing the right variant is almost a fun little hunt but for the average joe it is an unnecessary headache.

[Alterlife]

What's less obvious is the use of sound-treated glass and better dampening materials in higher variants.

I test drove the Yaris a few years ago as the showroom didn't have the lower variant for testing. The higher variant had some kind of better glass.

Buying a lower variant is basically like buying a different car.

[Carma2017]

Whilst i appreciate the sentiments expressed, but if we look at data for car sales by variants from different manufacturers, the car sales in India have been heavily inclined towards higher variants (60%+), especially for SUVs and other 4m+ sedans. This indicates that customers actually are not buying the lower variants in large numbers as before. Even for cars like Kiger and Magnite, data is again skewed towards fully loaded variants.

[iamahunter]

There are 2 things of doing this kind of pricing.

1. Increased foot-fall
Say if I have a budget of xxx amount and if that car's base variant is available for that amount, I would definitely go in and check it.

2. Customer Retention
Once I am in the showroom, I might go for a higher variant if I really like the car or I might check the other models from the company.

eg: I go to check out Vento's base model and end up either buying a couple variants above, or end up with top model polo.

Part 2 is where the sales team works in.

I feel, this overlap of pricing in the different segments is where it creates a win-win situation. Customer gets an extra option and company sells a car.


Of course, the part where customer books the lower model and then it suddenly is unavailable is an issue.

From my personal experience, I had booked the Swift without even seeing the new model (back in 2010) and with the Ecosport, the showroom had base model for display and top-end as a test-drive car.

[MT_Hyderabad]

I understand why companies offer such long list of variants and the cost of base variant ends up half of the top variant.
Consider this: There is a VW Polo which is available in red color at 6 lakhs price and the same car is available as 25 lakh car(on road, Hyderabad) in the same color, which the company calls Polo GTI version, which is close to 200 bhp (now discontinued).
This strategy works for luring low end customers who will settle for the mediocre variant. But the people who are buying the top variants are people who got fooled by company's marketing strategy. Of course there are people who understand the worth of a Polo GTI, but you can count them on fingers (check the sales figures).
I like luxury car makers strategy here. They don't create fancy variants for their cars. Just numbers do the job for them. Either it is C200 (petrol) or C220D(diesel). For the cost conscious customers, they will create another car! and not dilute the luxury of the C class customers.
I feel sorry for the customers who buy Top variants when the base variant is available in half the price.

[H_Dogg72]

Originally Posted by MT_Hyderabad

I understand why companies offer such long list of variants and the cost of base variant ends up half of the top variant.
Consider this: There is a VW Polo which is available in red color at 6 lakhs price and the same car is available as 25 lakh car(on road, Hyderabad) in the same color, which the company calls Polo GTI version, which is close to 200 bhp (now discontinued).

I feel sorry for the customers who buy Top variants when the base variant is available in half the price.

This is the most ridiculous thing I’ve read on the thread so far.
There is no comparison between a regular polo and a GTI. I say this as an owner of a regular polo.
I always buy the top variant, it’s personal choice. I know the base variant is cheaper but that’s not what matters.
This strategy is not bad at all, gives consumer choice. No one is putting a gun to your head to buy X variant.
Similarly, I have also decided to buy cars with less difference in the base vs top. Because you may end up paying 2x base model price but still have to deal with plastics, stalks, chassis of car that is sold for half the price.
But then that’s not always a choice, just a preference going forward.

[MT_Hyderabad]

Originally Posted by H_Dogg72

This is the most ridiculous thing I’ve read on the thread so far.
There is no comparison between a regular polo and a GTI. I say this as an owner of a regular polo.
I always buy the top variant, it’s personal choice. I know the base variant is cheaper but that’s not what matters.
This strategy is not bad at all, gives consumer choice. No one is putting a gun to your head to buy X variant.
Similarly, I have also decided to buy cars with less difference in the base vs top. Because you may end up paying 2x base model price but still have to deal with plastics, stalks, chassis of car that is sold for half the price.
But then that’s not always a choice, just a preference going forward.

It may feel ridiculous to you, but I still feel sorry for customers who buy the top variant when the base variant is half the price.
Polo was just an example where the difference is too high between two cars which looks exactly the same.
I am not saying that Polo GTI owner is wrong. But I feel sorry for him when an average commuter cannot make out the difference when it is placed alongside a Polo Trendline model.
He could go for a hardly driven BMW X1 of a higher spec in 25 Lakhs that he has put in GTI.
What you are not understanding is the sentence 'when the top variant is double the price of the base variant'.
Let me explain with another example.
Kia carens base variant costs 10 lakh in Hyderabad while the Top variant costs 21 lakhs.
Whereas the Alacazar base variant cost 19 lakhs and top one costs 24 lakhs.
Rather than buying a car which will have an image of a people mover (no offence to anyone who booked/owns Carens, but the base model is compared to Ertiga) I get everything or even more in a Luxury branded car like the Alcazar in similar price.
I hope this clarifies. There is no problem in buying the top model of Alcazar as it's positioning is that of a luxury car with only 5 lakh difference between the base and the top model.
I cannot explain it more simply!

[vj123]

Originally Posted by MT_Hyderabad

I am not saying that Polo GTI owner is wrong. But I feel sorry for him when an average commuter cannot make out the difference when it is placed alongside a Polo Trendline model.

What others think really doesnt matter when the buyer is happy with his/her choice. These are the same people who dont know the difference between 5 series / M5 and personally, i wouldnt care on what they think about my vehicle.

As far as i am concerned, i am happy that OEMs are offering several powertrain options in the Indian market when variants just meant features and cosmetic changes in the past.

[sarav100]

For a single engine + transmission combination, price difference between base and top model should not be more than 50% of the price of base model. And if I’m correct, barring a few exceptions like XUV700, most of the cars conform to this standard.

Also, if the same car’s top variant having a different superior engine or transmission costs double of the car’s base model price having an inferior engine, the 100% price increase is justified in my opinion.

Also, top models of cars costing two times the amount compared to base model is something that is common across globe. Just pick any mass market car in the USA and you’ll see same trend there as well. Some car variants are even available at 3x price as well. Example: Dodge Challenger SXT starting at CAD 37000 and going all the way up to CAD 111000 for SRT models.

[H_Dogg72]

Originally Posted by vj123

What others think really doesnt matter when the buyer is happy with his/her choice. These are the same people who dont know the difference between 5 series / M5 and personally, i wouldnt care on what they think about my vehicle.

As far as i am concerned, i am happy that OEMs are offering several powertrain options in the Indian market when variants just meant features and cosmetic changes in the past.

Precisely.

Originally Posted by MT_Hyderabad

It may feel ridiculous to you, but I still feel sorry for customers who buy the top variant when the base variant is half the price.
Polo was just an example where the difference is too high between two cars which looks exactly the same.
I am not saying that Polo GTI owner is wrong. But I feel sorry for him when an average commuter cannot make out the difference when it is placed alongside a Polo Trendline model.
He could go for a hardly driven BMW X1 of a higher spec in 25 Lakhs that he has put in GTI.
What you are not understanding is the sentence 'when the top variant is double the price of the base variant'.
Let me explain with another example.
Kia carens base variant costs 10 lakh in Hyderabad while the Top variant costs 21 lakhs.
Whereas the Alacazar base variant cost 19 lakhs and top one costs 24 lakhs.
Rather than buying a car which will have an image of a people mover (no offence to anyone who booked/owns Carens, but the base model is compared to Ertiga) I get everything or even more in a Luxury branded car like the Alcazar in similar price.
I hope this clarifies. There is no problem in buying the top model of Alcazar as it's positioning is that of a luxury car with only 5 lakh difference between the base and the top model.
I cannot explain it more simply!

Nah you can’t expect buyers to be like kids. They are making an informed decision. If that weren’t the case we’d see more of top variants on the road rather than how it is now.
People can spend their money how they wish. Don’t agree with your explanation or view point.
There’s nothing “Luxury” about an Alcazar.

Felling sorry for a GTI owner, that’s rich!

[blogslogger]

I am OK with the trend as long as manufacturers offer a wide range of choice. However, what I am not a fan of, is the bait and switch tactics I am observing increasingly by manufacturers in the name of 'chip shortage' (I do understand it's a real problem, but manufacturers have used it to woo customers to upgrade). I was on the hunt for buying a new car for Father In Law and we zeroed on the punch base version. Since his usage is low and rarely go out, we wanted a safe car with very few things to go wrong. However the variant would take 2 months to deliver while creative was available in 1 week and that too with the colour of our choice. Since the car was an urgent requirement, we had to buy the top end. Which was 4 lacs more. This might be a one off, but I did observe the trend in couple of Kia and Mahindra showrooms as well.

[MT_Hyderabad]

Originally Posted by H_Dogg72

Nah you can’t expect buyers to be like kids. They are making an informed decision. If that weren’t the case we’d see more of top variants on the road rather than how it is now.
People can spend their money how they wish. Don’t agree with your explanation or view point.
There’s nothing “Luxury” about an Alcazar.

Felling sorry for a GTI owner, that’s rich!

With such large differences in variants, we are merging two different segment cars.

Let's talk about creation of Nexa by Maruti.
According to their website:
"NEXA is created with the purpose of inspiring people to witness an exclusive automotive experience. It was ideated intricately for the Indian car buyers who wanted to be treated differently."

In simple words, Maruti does not want an 800 owner to stand alongside a Ciaz owner. Maruti was once selling the notion of its wide reach in rural areas and the extremities of the nation. But the moment they realised, or actually felt sorry for their luxury brand customers to share the same space as their mass offerings, they created the Nexa brand.

Yes, people are wise enough as per your understanding, and will not mind looking for a ciaz alongside a person looking for a 800. Right?
Nexa should not have done that as per you.
Maybe their marketing strategist are from third grade B schools. But unfortunately, it worked.
This half cost base variant is a strategy which these manufacturers are aspiring to gain low to mediocre variant sellout. I have my thoughts for the high end customers falling for such traps, when other manufacturers of a higher segment are waiting for them with open arms .

Originally Posted by sarav100

Just pick any mass market car in the USA and you’ll see same trend there as well. Some car variants are even available at 3x price as well. Example: Dodge Challenger SXT starting at CAD 37000 and going all the way up to CAD 111000 for SRT models.

Do you have different dealerships for low end cars and high end cars from the same manufacturer in the US? If not, we cannot compare the Indian market with US market.
The reason why this thread exists is a good enough reason why this won't work in India. It is a recent trend and may be marketing strategist of these companies are also reading these threads and creating data points for their next move.