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> Can Mitsubishi Xpander topple Honda BRV in 2018?

Expander to beat BRV?
 
1. Yes, the force is strong with this one [ 125 ] ** [56.82%]
2. No. Only in your dream [ 95 ] ** [43.18%]
Total Votes: 220
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wkc5657
post Aug 25 2017, 03:16 PM

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QUOTE(EnergyAnalyst @ Aug 25 2017, 11:48 AM)
Low volume also does not equates to good service, can you think of other brands that have similar volume level and limited product offering and get ranked top 3 in the past 3 years?. I think it is easy to discredit a low volume seller and undermine the effort they may have put in to have a good customer service level this way. It is just too convenient and lazy to assume such way
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My take is this, usually for those low volume brands, the local distributor itself is juggling a number of other brands or car sales are not their core business activity. So naturally, the brands/divisions that can give the best margin get the best/most resources for customer service and after sales service.

QUOTE(EnergyAnalyst @ Aug 25 2017, 12:34 PM)
Exactly. There you have it a winning formula . Despite being a lesser know brand, harder to get parts. Remember the day before CX5?

Underdog sometimes need just one model to have a winner even if they lost out in brand , lost out in to the whole other scheme of things .

Hence my question : can this Xpander be another story of David vs Goliath?
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It was good timing for mazda, it was just before the design transformation of both toyota and honda. Those were the times where both Toyota/honda was pretty snobbish. No doubt the CX5 pricing was a good attraction, and the free 3 years free service is pretty much segment leading after sale feature among the japanese camp.

Now with the pricing step up and the new design language and performance boost on honda's end, CX5 will see a significant loss of interest; even more so when the new CX5 looks like just another facelift despite being a new generation model.
wkc5657
post Aug 27 2017, 05:07 PM

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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
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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.
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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.

edit
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
wkc5657
post Aug 27 2017, 09:06 PM

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QUOTE(EnergyAnalyst @ Aug 27 2017, 06:20 PM)
So if Honda gets more money, than shame on them to lose out in service to Mitsubishi which gets lesser money, isn't it?
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True, but still people flock to them in droves. That's is the power of brand lock in, it totally captured the market for those looking away from national makes. Any corporation would like to be in such a situation, it is easy money. 1 thing honda malaysia did well was to keep the market excited. The best example is the expanding list of trim lines for the city. Even markets with way larger volumes also don't do things like this but this is something unique that was done to our markets to continue keeping the attention of malaysians on honda.

But, by observing the civic fc forum, it does reflect some snobbishness that the final quality touches are just lost to push the car out of the factory. As long as it can drive and no visible defects, and the car is allocated to an eagerly waiting customer, the problem lies with the dealers, no longer at the distributor. Not the best of business ethics but good money. So a hats up actually to the dealers that are responsible to the after sales service for mitsubishi, they are not taking things for granted like what honda is.

 

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