Saturday, January 30, 2010

Volkswagen Beetle - Too high Price



Volkswagen Beetle is easily one of the cutest car in the world and is finally arriving in India. I am really excited and waiting to see car running on Indian roads. But what came as surprise to me is the high price quoted by the company. The company is quoting price range starting from 20-22 Lakhs in India which by no means looks affordable.

If we look at the Volkswagen vehicles, they are known for yesteryear's styling and fun driving dynamics but are inefficient in fuel efficiency. Beetle is positioned as affordable car throughout the world and costs nearly 10 to 13 Lakhs in US. The car is called as people's car and is one of the largest selling vehicle in the world. Given the positioning of the product in the market I can't really understand the logic behind high pricing in India as it will be tough for the car to achieve high volumes at this price.

What segment of the market are they really targeting ?

7 comments:

sachin said...

20 lac price tag is thanks to 60% Basic custom duty, 32% addl custom duty on CBU imported into india.....

Ankit said...

Yeah true , but why are they thinking about importing it to India and not about manufacturing it here..

SiD said...

thand rakho beta.. Mfg in India is not too far away.. guess it shud be accomplished in our life time..

And as far as positioning goes.. in US it is targetted at soni kudiyan...

but here the husbandss of soni kudiyan are not crazy enuff to buy them 20L cars so in the ads we see a (rich)guy driving it..and a guy swooning over it...in the other one with the kid, they try to tell that it is for 18 - 20 yr olds for driving arnd their GFs(which is again total BS). But in the 2nd one I think they are just trying to differentiate in the diff cars..
So basic summary of the gas above.. here it is targetted at rich men.. which "I" think is a poor strategy... bhai agar mere pass 25L rs hai then I have PLENTY of good options for Manly, Robust cars with good engines!!

SiD said...

btw, saw a beetle on road in the city of NRIs - Jallandhar.. Looked out of the league in a dusty, toota foota environment.. :)

Ankit said...

he he he . Agree with u totally .. Adman seemed Confused about the positioning and the target segment :)

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