[TheSMG]

Last generation SWIFT had driver seat height adjustment from VXi variant. Current (4th Gen) VXi swift do not have driver seat height adjustment.

Same goes for Baleno. Previous gen Baleno had LED projector headlamps from Delta variant while the current gen Baleno gets it from Zeta variant. Previous gen baleno had UV cut glasses from Zeta variant while the current gen gets it only in Alpha variant.

Even Brezza is the same story. Previous gen variant had ICE system from LXi and LED headlamps from VXi variant onwards, however, the current gen LXi does not have ICE system and VXi does not have LED headlamps.

Maruti Suzuki is deleting features so as to push customers towards a higher variant which in turn increases average selling price per car.

[DriveHome]

I for one think it’s actually fine for manufacturers to resort to feature deletions during the life cycle of a vehicle. It’s the one of two ways they deal with inflation or rise in input costs – (1) price increases, or (2) feature deletion.
We, the consumers, will be equally unhappy with price increases, but that’s just how the market is with inflation in prices across all sectors. And inflation is inevitably passed on to the consumers be it as direct price rises or “shrinkflation” as Sk8r mentioned -

Originally Posted by Sk8r

Can draw parallels to "shrinkflation" seen in FMCG goods. A packet of lays has been INR 10 for a very long time, but the weight hasn't remained the same

As aravind.anand mentioned, which features get deleted is decision probably made with sufficient research in terms of competition benchmarking or consumer feedback on the actual features the consumers are looking for -

Originally Posted by aravind.anand

Automotive OEMs frequently conduct cost workshops to benchmark and remove features that are not present in their competitors. Changes that are not simple, would be earmarked for implementation during the next face-lift or new model change. This is just an exercise to keep the profit margin healthy.

If they can remove features without significant re-engineering, and if it won’t really affect sales as its not a dealbreaker for a consumer, they’ll go ahead with it if they can keep the prices the same.
It might feel like switch and bait, but it’s the same as launching a product at a lower price and gradually increasing the prices.


Having said that, I do agree that it definitely irks me when a new generation model is brought in, and a feature synonymous with that segment or car is deleted.

An example I would cite is not exactly a ‘feature’, but the build quality and materials used by VW in the Vento vs the Virtus. The Vitrus is a Vento replacement, I would have happily paid a little more to get the same materials and build quality as the Vento in the Virtus. I would know, as we exchanged our 2011 Vento for a 2022 Virtus.

Other good examples are those listed by Cresterk.

Originally Posted by Cresterk

BMW X1: When launched in 2016, it had the X-Drive all wheel drive system on the higher variants.
After 2020, this was deleted even as prices touched 50L onroad.

Volvo XC60: When launched in 2017 for 55L, it had height adjustable air suspension, blind spot monitor etc which were all first in class. All were deleted in the 2020 refresh even as prices went up significantly, touching 85L on road.

What I find amazing is the fact that BWM can get away with a 134 hp, 1.5L engine on the X1. I for one do not associate those numbers with an 'Ultimate Driving Machine' or anything in that class.

Another way I have found manufactures doing this is pushing some features up the variant ladder.
e.g. My 2019 Glanza G has Auto Folding ORVMs and Auto Dimming IRVM, and in the 2022 Glanza these were pushed to the top spec V variant.

I think this is quite prevalent in the Maruti Suzuki cars in general.

[Small Bot]

Originally Posted by TheSMG

Maruti Suzuki is deleting features so as to push customers towards a higher variant which in turn increases average selling price per car.

Yeah, MSIL has quite the poor track record on this, and they're brazen about it too. Not too long ago, the Smart Hybrid system was removed from specific lower or manual variants of their cars. I personally know at least one person who was forced to go for a higher and automatic variant of the Brezza petrol just to get that mild hybrid system.

Gimmicks like these don't win you satisfied repeat customers.

[fhdowntheline]

Well, we cant have it both ways.
1) The demand is high. People obviously have higher disposable income through sources other than their own salary, like equity etc.
2) Just like other sectors, manufacturing sector also has its stock/dividend pressures.
3) Labour is no longer cheap. Compliance costs, in the name of any fancy terminology/buzzwords are going up.
What can companies do?

[xway]

Simple reason, taxes, see the breakup below for average car of 10lac and above.

GST 28%
Cess 22%
Road tax 17% taken karnataka, some have lesser
Insurance 5%

Total 72% shocking and downright unfair but it is

Government takes away lions share of car cost in taxes. No wonder many giants shut shop after trying hard for years.

Toyota for example earns 35,000 on an innova whereas government takes away as high as 15 lac in taxes.

No wonder car manufacturers remove vanity mirrors or a single nut and screw to squeeze a drop of ruppee out.

[chanz2015]

This feels like a double-edged sword to customer.

Its always not good to buy a newly released car as there will be niggles and issues. Ideally its better to wait till a year or so.

But after a year, when the customer goes to buy the same car, the price has increased and a few features deleted. Most possibly the price point and the those deleted fetures were the reason the customer wanted to buy the car in first place