Saturday, 22 February 2014

RIP Honda Accord and VW Passat !

Accord and Passat the Flagship Saloon models of Honda and VW respectively are no more in production now and have been official discontinued. Sources reveal that they will not come back in the market before 2016, so the Passat and Accord lovers will have to wait and watch for sometime. 

The main reasons for the giants to discontinue their flagship saloon has been depreciating Rupee, increasing cost of production , v high pricing and tough competition from German Luxury car makers . Accord in a 2.4 ltr petrol engine was priced at around 25 lakhs where As Passat 2.0 TDI top variant used to be around 31 lakhs , A person spending 25 lakhs or more has a lot of options namely An Audi A4,Q3 or may be a BMW X1 , 3 Series, 1 Series or even a Mercedes A class, B Class, C class .It should be understood  that consumers and the ruling young generation of India is becoming brand conscious, If I can spend I want to be in a niche segment or own something exclusive not a brand which is owned by many. A person having a High income becomes a Honda Accord owner no matter how wonderful the car is but the fact is a person with an average income is buying a Honda Brio and is driving the same brand which the high income level person is driving. It misses the exclusivity factor.A mass product can never be a Niche product and vice versa. No wonder why Maruti and Hyundai have never been successful with Highend top premium Cars , All their high end cars have not done well ever in comparison to competitors viz Baleno, Grand Vitara, Kizashi, Elantra, Terracan, Tuscon, Sonata etc . They need to understand that they are a mass brand and not a premium brand . One can not be masters in every field , Either we can cater the mass or we can cater the niche . We need to understand the exclusivity factor when dealing with a high end product or brand .

Both the cars Accord and Passat together have sold less than 500 units in past 7 months, The factories and dealers have wiped out their stocks . We need to wait till 2016 when we assume Accord and Passat will be launched with a complete makeover in the bodyshell , interior , engine . I won't be surprised to see the diesel Honda Accord ! Let's keep our fingers crossed :)



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