It’s a simple question but the answer isn’t!
Buying Cars From New Brands
The Indian automotive industry is one of the largest in the world. And like many things today, it is undergoing a change in several ways. Today I will be talking about one such factor, which is the brands competing in this market. With the entry of MG and the forthcoming entry of Kia, there is not a better time than this to address the pros and cons of buying a car from a new brand.
The Benefits
The main benefit of putting your money on a new brand is to experience something new. Every company brings something new to the table with its line of products. This is true even in other categories. A new brand means a new design philosophy, new features, new engines, new buying experience, etc. Also, in general, a car from a new brand is a more attractive offer.
My claim here is evidenced by the recently launched MG Hector. MG threw everything they had in making this car, especially in terms of features. This car was launched with a lot of segment-first features that make it an attractive package overall for the buyer. The same can be said with Kia. With their debutant Seltos, Kia is teasing a Bose sound system, 10-inch touchscreen, 360-degree camera, etc. With their first car, every company makes a statement about its brand name, so it almost always has a few perks and features above the competition.
Apart from that, there is the competition factor. Since we already used MG as an example, I will continue to use it here. I doubt Tata or Mahindra will stay dormant and leave their respective products i.e Harrier, XUV500 without any feature updates after MG’s entry in this market and segment. Tata has already announced a minor update for the NVH levels and the infotainment. The company is also testing the car with an automatic option and a sunroof but this was in the pipeline since a while. At the end of it, the customers will surely benefit from these updates.
The Shortcomings
The main shortcoming of buying a car from a new brand is reliability. No, I am not saying cars from a new brand will break down more, I don’t mean it in that way. I am talking about brand reliability. When a brand enters a market with ambitious plans, they can have teething issues.
This mostly does not reflect on their growth, but if it does, it’s not good for the customers. Take Chevrolet for example, they really never were able to set a rhythm for themselves despite tasting success with many of their products. Now with their absence, getting some genuine parts for their vehicles does get difficult.
But do note that even going for an established brand might not alleviate this issue. Ford is rumored to leave the Indian market as a standalone company and continue as a joint venture with Mahindra. Such things are unavoidable if they pop up, but do your research on a company before buying the car if you do worry about such things.
The teething trouble I mentioned before also could trickle down to the manufacturing. Manufacturing defects tend to find their way in these products more than normal. Even Mahindra faced some production issues related to the electrical system with their XUV500 upon launch. So it is better to wait it out for a month or two before going out and buying the latest model available.
Apart from this, there is the factor of brand image. MG received criticism regarding their Chinese backing, despite them being headquartered in Britain. Such things cannot be changed by the company, yet can affect their image. But, MG Motor is doing very good in terms of their brand image by providing a 5-year warranty, halting bookings to serve their existing customers, etc.
Conclusion
When a brand makes a product that costs lakhs of rupees, trust and image are very important. And building that trust is, and should be the major goal of these new entrants. Take the Endeavour-Fortuner situation for example. The number of fans for the current generation Endeavour and Fortuner is neck and neck, if not, a bit more on the Endeavour’s side. But the sales numbers would tell you a very different story. Although the Endeavour has a better fanbase, when it comes to putting their hard-earned money, people tend to pick the more conservative option available. And the Fortuner seems to have kindled that feeling better.
That feeling of reliability can make or break a company’s success in our market. The factor of brand image I mentioned before was one of the main conspirators to GM’s absence in India. Speaking of which, Chevrolet probably will not be coming back, as they left this market with a bitter taste in their mouth, and also because SAIC, owner of MG backed 7% of GM’s investments in India. I doubt they would be willing to do that again considering they are already present in the market.
But at the end of the day, its all about preference. This topic is very subjective. If you are a person who likes to experiment and wants to be the early bird, buying a car from a new brand is the way to go. If otherwise, then going for a long established brand would give you the peace of mind you are looking for.
