QUOTE(EnergyAnalyst @ Aug 25 2017, 10:56 PM)
So since Mitsubishi and Honda authorised distributor and service centres are from the same principal DRB Hicom group of companies, are you saying Honda gives lower margin and Mitsubishi gives higher margin?
Yes I agree timing can play a role too. Wait till you see the real deal new CX5 , I have seen it in Japan . My head was turned back until it hurts , to me it looks so much sharper and premium . The new CRV still turn me off because of many quirky and jarring bordering eye sore causing design oddities . Much like BRV in certain ways
I think you may have misunderstood my comment earlier.
From commons sense financial perspective, if the distributor has a few brands on their hands, they would logically put in more resources to the brand that give the most margin. For DRB's case, honda will have more money on the table than mitsubishi; as honda brings in more profits than mitsubishi does.
QUOTE(zweimmk @ Aug 26 2017, 09:01 AM)
Market conditions today are a lot more different than it was back in 2011/2012. Honda and even to some extend, Toyota, has finally started to give their cars more kit and warranty for the asking price. So it's definitely much more competitive now than it was then. Even semi-premium marques like VW has started to price their cars a lot more reasonably (no thanks to all their scandals and fiasco), and if you haven't already noticed - even premium marques like BMW/Mercedes/Volvo have even started to sell their entry level sedans at 160k to 170k marque, which may entice some of the buyers from the 140k-150k market.
Saw some photos of the new CX5 - it looks good but more like an evolution of the current design. Agree that the new CRV looks funny in some ways but one of its trump cards is the new Earth Dreams 1.5TC engine which Mazda has no counter for. Whether or not this makes a difference in sales figures is anyone's guess but for those of us who have been so used to the turbo kick, going back to NA will be somewhat of a challenge.
In the end, I think it depends on the pricing. Have you taken a look at the Mazda cars pricing?
Mazda 2 - kind of priced out of the City/Vios/Almera/Attrage war
CX3 - a little priced out against the HRV and 2008?, looks to compete against the new T-Roc
CX5 - competitive against CRV, X-trail
Mazda 3 - competitive against Civic, Altis, Jetta, 408?
Mazda 6 - completely priced out of competition against all its rivals - conti or otherwise
If the new CX5 continues the same pricing policy as the old CX5 while still giving good kit, it should be able to limit the impact of the new CRV. Difficult to say if they will maintain the sales lead but at least it will be a neck to neck battle.
The Xpander has a good chance of succeeding. Design looks good, Equipment looks decent - so it comes down to how they will price it in Malaysia. But Mitsubishi may find themselves facing the same profit margin issue that I and wkc5657 have discussed a week or 2 back. Do they go for market share while trying to survive on razor thin margins or go for better profits with the risk of pricing themselves out of the competition. This is also a problem that is facing the Kia Optima GT as well.
Unlike what our "resident marketer" which likes to simplify so much about marketing strategies, marketing and customer acquisition itself is pretty subjective topic itself that there are no clear cut answers. Because, it is not possible to know clearly what millions of perspective customer actually wants. Yes, there are tools. Surveys and big data able to obtain a pattern but those are past information. So marketers need to balance 3 sides, what the current information is telling, how will these factors/preferences evolve in the future or want to create a new pie (example would be the coompact crossover craze now, which in the past only suzuki is the best of it).
Another thing to consider is the factor of brand lock in for more conservative markets like us. So since toyota/honda did the groundwork long ago, and they didn't have any major hiccups along the way, coupled with the long history and establishment, the branding pretty much is stamped inside the minds of consumers. I guess this pretty much contributes to perodua's success as they are pretty much a cheapified toyota. Nissan, despite also having similar long establishment here in our market, the major stumbling is the lack of product excitement. New generation models come few and far between and i also presume that maybe japan nissan is not willing to let tan chong assemble more models. Something like the qashqai would be a nice perk to ride the crossover wave and a little perk up to nissan here.
With such a small and maturing TIV, coupled with a very moderate income growth of malaysian (we're generally still in the middle income trap scenario), eating up another players pie (especially the big ones) will require a lot of resources and time to be put in. And with such a rigid brand lock in, are the resources poured in worth the additional market share gained? Incumbents like toyota and honda can do it easily and any additional resources put in can easier translate to consumer lock in. For smaller players, it is a really tall wall to ascend without the help of HQ.
Just saw the indicative pricing of the upcoming cx5, the sales volume would not be a show stopper, consider good news for mazda if the volume didn't drop dramatically compared to current number alongside the onslaught of CRV. If the facelift was actually done in this extent, it could have maintained excitement for the brand.....This post has been edited by wkc5657: Aug 27 2017, 06:09 PM