Is The Indian Auto Market Value-Conscious Or Is It Price-Conscious?

Value is a myth in India. So would be values, but that is a philosophical question and therefore another argument for another day.

Today, we’ll talk about just a couple of bikes and explore just a few possibilities. A popular YouTube channel did a comparo of two bikes: The KTM Duke 390 and Kawasaki Ninja 300. You'll notice the first is not a great looker. In fact, I'll admit it looks like a bright orange grasshopper.

The 2016 KTM 390

The 2016 Kawasaki Ninja Z250-R

In the video too, the public that was polled always chose the Kawasaki over the KTM. In pretty much every test thrown at it from every value point, the KTM is a winner. It is more powerful, has a better power-to-weight ratio, handles beautifully and has a far better feature set. It has a riding position that is more suited to navigating the massive urban snarls that are India’s roads. It is also priced more competitively. So why does the public chooses the Kawasaki almost every time? They’re going for it’s looks. Think full fairing. Think Kawasaki racing green. Think sporty riding stance. All this from a public who spends most of their time commuting in stop-and-go, slow-moving traffic in cities. Of those who do manage to put the INR 500K down to own the Kawasaki, 85% will never race it. Ever.

This is the problem with both Indian bike riders and Indian marketers. In the price conscious 150cc upper budget segment, you'll find the sensible commuters such as Honda's CB Unicorn, the Hero  and Suzuki's awesome GS 150R. All of these bikes are powerful, comfortable and will not injure your spine if you ride them for years. But they don't sell in great numbers, do they? Why? Because we like "sporty" stuff. This in a counrty with 100 million motorcycles and scooters which is in a state of constant gridlock.

If motorcycle specialists such as Honda, Yamaha and Suzuki go to these extents to pander to the "looks" crazy Indian buyer, you can bet the Indian manufacturers are worse. Bajaj and TVS haven't had a 150+cc bike with proper ergonomics in years and Hero's Karizma suffers from a serious case of confused identity. All of these bikes were designed and chassis-tuned to be ridden upright. But in order to appeal to their target demographic of teenage to mid-twenties males, they all are fitted with sports handles and foot rests set back in the chassis. You can ride like that once in a while, but do it everyday for years and you'll end up with the motorcycle equivalent of carpal tunnel syndrome. My problem is not that they're doing it. My problem is they're not doing it right. Ever see the kids romping around on these sports bikes riding in proper gear? What happens when they ride recklessly?

Take the Tata Nano for instance. When it was launched at 100K Rupees and change, it had no takers. Now that it has been positioned differently (and priced higher, incidentally) Tata manages to get a decent number of them off the shelves every month.

The 2016 Tata Nano

Marketers often call India a value-conscious market. I say it is a price conscious market. We have no clue what value is. It is also a market where the lack of sales drives prices down and the opposite is true as well. Take the Chevrolet Sail and Honda’s Jazz. Both of these are solid, comfortable, modern cars with a lot of kit. But when they did not sell in decent numbers, Honda slashed the Jazz’s prices while Chevrolet started offering massive discounts and extended warranty. On the other hand, better selling models are being priced higher and higher till they are almost out of the reach of most Indians. Toyota’s new Innova will cost Rupees 2 million at the top of the line. Is it a good car? It’s a damn good car! Is it value for money? Hell, no!! This is all on top of the hefty premium that Toyota and Honda already charge for their wares here.

Or for that matter, take Mahindra’s best selling Scorpio. This is not a car. It is a truck that is branded and marketed as a car. And I mean truck in the most un-car-like way. In the worst possible way. The Scorpio has a truck-like driving position, gear lever and it rolls and bobs like a truck. Still, nobody seems to get beyond its looks. The same goes for almost every Mahindra, which seems to have taken the mantle of the ugliest cars ever made from Hyundai. In fact, Mahindras would probably also be the most poorly engineered vehicles on the roads today. The Scorpio and XUV500’s high maintenance costs bear testimony to this. But no matter. They have an excellent marketing department. And plenty of Indians for whom looks matter more than value or functionality.