Many tactics have been implemented by car makers operating in India to revive falling sales. Since there is incredibly a tough competition among companies, all try to outdo each other by including more features in their cars. As a result, price sensitive Indian buyers are provided with more alternatives in terms of products. Slowly and steadily, the sophistication level of low-priced cars is increasing, thereby compelling experts to draw comparisons with high-end cars. Features that could be related only related to the luxury car segment have made their way into the low-cost car category. And the good part about this development is that the parallel increase in prices is not proportionate, rather minimal if the additions were to be considered.
As per a report in Economic Times, prices of cars have increased by around 5 to 10 per cent whereas number of features that have been include would add around 25 per cent to its cost. Several advanced features are now present on cars that cost as low as Rs. 2 lakh, which is quite incredible. Bluetooth integrated audio systems, retractable side mirrors, cooled glove boxes, and rear air conditioning vents. Experts feel that the addition of technological features is something that is being done on purpose by car makers in order to differentiate themselves from other firms. Keeping a certain standard as base, companies are trying to raise the bar by including low-cost models as well. However, some analysts suggest that this sort of development is not new to European and global markets. It is only countries like China, Indonesia and India where this trend can be considered as unique. Some experts have tried to explain this concept by stating the concept of cell phones in India. They feel that customers in India go for brands like Micromax, which offers the same features as Samsung or Apple, at a much lower cost.
About ten years back, power steering and air conditioning were optional in cars but now are standard. Experts feel that it will not be long before that Bluetooth connectivity, keyless start, Anti-lock Braking System (ABS) and outer rear view mirrors with electronic adjustment are going to feature in all cars. Credit is being given to the ever increasing scope of Research and Development in the country. This trend, in a lot of ways, depicts the trajectory of evolution that the Indian car market has depicted since early 1990s, wherein cars were treated as mere modes of transportation. Advent of the new millennium saw customers seeking good vehicles that are value-for-money. Cut to the modern day scenario, buyers want everything to be present in models they purchase, be it comfort, safety, power or convenience.
There are several examples of cars that have improved drastically in terms of technology but the hike in price has not been proportionate. Ford Figo, for instance, was upgraded quite severely, provided with around hundred advancements, which included ABS and Electronic Brake-force Distribution. About five years back, power steering, power windows and central locking were present in around 35 to 70 per cent of the cars, a range that has now changed to 85 – 95 per cent. Some analysts believe that buyers in India are getting improved value for money, which has helped them to pay a slightly higher price in exchange for a lot more.
Pradeep Saxena, Executive Director at TNS Automotive, spoke about the importance of adding features in cars. "Strong brands are always the leaders but in this highly competitive world, one of the key levers to make your brand desirable is by adding desirable features spanning the entire gamut of features in your vehicles. In comparable brands, often the level of feature sets becomes a key differentiating factor," he said.
