Tuesday, September 04, 2007

Car sales update

Some time back, I had predicted that the Logan could find the going tough.

Heres the sales report for August 2007. The SX4 (plus old Esteem etc.) sold some 4839 units, while the warhorse Honda sold 4879 units (with the City selling about 3095 odd units).

And Logan sold about 2252 units this month. The A2 segment, Indias favourite sold about 41,736 - and thats just Maruti models. Count the Santro and the Indica, the figure will be still higher.

You can argue that it is early days yet for the Logan and the SX4 is a new launch and a thousand other things, but fact is that it is early days for the SX4 too as much as it is for Logan, while the Honda City is going strong despite being in the market for a couple of years, so it can work either way. You can also argue that it has limited reach thanks to fewer dealerships as of now, but again, low sales in the initial days are not exactly great advertisement for any car.

Here is some real analysis though...

The trick is to create the low cost option without marketing and touting it is a low cost option. Nokia 1100 is a case in point, with the "Designed for India" tag. The moment you go out and say, "Designed for low cost", thats it. The customer who buys it needs to feel good about it. Thats where I suspect that Logans pedigree comes in the way.

1 comment:

sanjay said...

India is still a mass market and as any mass market here too price is more important than just style....i too was not very excited to see Logan on the road but no. (http://wheels.indiatimes.com/News/News/Honda_to_play_safe_with_new_City_/articleshow/2325642.cms) tell a different story altogether....may be initial euphoria settles down in months to come.