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Shock(Absurd) pricing of Spark

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GM, which shocked the Indian public with its Low price on Beat last week, shocked the same public by increasing Spark price by 20k.

 

Every Mfg decreases previous gen car after the latest gens release.

Has GM gone mad this time?

 

This brings Spark's price dangerously close to Beat.

With MUL planning to decrease W-R, Swift, Alto,..etc price, where will this price increase takes GM to?

 

Source- based on T-Bhp discussion

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I have a feeling that car co's are going to increase prices across the board citing increased input cost's. Hyundai has already dropped a 'broad hint' to that effect. They obviously can't compete with the cell phone co's in reducing tariff.

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Maruti is increasing prices in the next 2 weeks, says one of their senior VPs in Kolkata today. 

GM while launching Beat in Hyderabad and Chennai yesterday had clearly indicated that the invitation price of Beat is for the first six months of launch only after which the car will have an increase in all the variants.

 

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Its not a shock.

Every year car owners give more discount during December to increase the year end sales. But it is usual that they reduce the discount/offer amount during January which is common with all car manufacturers!

So simply GM has reduced the discount offer from 47k to 27k !

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I do find it very logical. Chevrolet wants prospective buyers of the Spark to opt for the Beat instead thereby increasing its sales. The Spark would eventually come with a 800cc engine, so any slump in the sales of the Spark will be offset when the cheaper model goes on sale

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Guys any idea of the Discounts on Chevrolet Aveo, at-present what is price offered for the Aveo sedan. And what's their sales figures.

Increase in spark is just the discount amount being reduced so its so common, why people calling it as shocking news.

Anand Sivaraj2010-01-13 15:26:47

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Its not a shock.

Every year car owners give more discount during December to increase the year end sales. But it is usual that they reduce the discount/offer amount during January which is common with all car manufacturers!

So simply GM has reduced the discount offer from 47k to 27k !

this 47k discount remained for about 2 yrs or more buddy

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i'm not sure as to what is the shock in the pricing of the spark nor the beat..the spark is just about 20k costlier than the Alto and atleast 30k cheaper than the santro, so it appeals as an entry level car. The beat on the other hand is primarliy pitted against the wagon r, i10.

Have you checked out the OTR of the beat in your cities? In bangalore the spark base version with power steering costs about 3.38lacs which is just 20k more than the alto {3.13lacs} after all discounts.

The beat, im not sure, but the base version with power steering should be atleast 50k higher than the equally specced spark. Now that is a great pricing strategy!sujith31202010-01-17 11:59:09

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Recently i talked to the GM salesman of Ludhiana city 3-4 days back,

He gave me the following price list of Spark:

-Base AC/Heater(non PS)- 3.14 lacs;

-HVAC+PS- 3.26 lacs;

-LS- 3.44 lacs;

-LT- 3.73 lacs.

These are ex-showroom prices without Discount.

And the Discount what he was offering at that time was Rs.32k + 3-year Free Maintenance Package....

While the New Beat costs, ex-showroom,ludhiana are:

-Beat PS- 3.39 lacs;

-Beat LS- 3.59 lacs;

-Beat LT- 3.99 lacs.

There are no discounts, free maintenance plans yet on it till date...

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While the MS Alto ex-showroom, prices of Ludhiana city are:

Variant

Non Metallic

Metallic

ALTO XCITE

288550.93

291672.35

MARUTI ALTO LX BS III (WITH IMMOBILISER)

258042.26

261163.68

MARUTI ALTO LXI BS III (WITH IMMOBILISER)

275302.35

278423.78

MARUTI ALTO STD BS III (WITH IMMOBILISER)

227101.48

230222.89

** Alto now with authorized Maruti CNG Kit at additional Rs.43545/-. Available only in Delhi & NCR.
 Source:MSIL Website.

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Initially I was totally shocked by the Beat's pricing and felt at that price it would easily eat into the market share of Santro, WagonR, i10, Ritz...

where as after a small market study, talking about the Beat to potential buyers of WagonR, Santro, i10... its pretty clear that they are not gonna shift in-spite of the low initial cost.

Their major concerns are

- Reliability

- Maintenance costs

- Fuel Economy

- Resale

Which are not met by the Chevy's weak Brand Image.

Hence most of these potential buyers are highly unlikely to walk into GM's showroom.

In order to fulfill these 4 concerns in the long run, GM's Beat should get termed as a hot seller in the coming months and should retain constant sales of at least 7000/m. Therefore Beat (Chevy) can stabilize a bit in the future and can challenge Maruti and Hyundai.

The easiest way to achieve this is by shifting a major part of the 4k Spark buyers to buy the Beat.

Deepak DS

www.BrainSea.comdeepakds2010-01-17 18:31:24

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