Monday, April 20, 2020

New Santro – Facing an Identity Crisis?



The Indian Automobile sector today, like other sectors, is haunted by the ‘tyranny of choice’(Phrase Courtesy: Jack Trout). One wrong step can result in irreversible damage both for image and market share. The bygone years have witnessed an enormous leap in the number of car brands in the country. The level of competition in the market intensified. Some brands got vanished in no time while new ones occupied the space. New designs and technology replaced the obsolete. However, Maruti and Hyundai still enjoy the top two positions in the market with Maruti on top.

In such a scenario, if a brand survives and survives for more than two decades, it is often laudable. Maruti’s Wagon R and Hyundai’s Santro, who are still in the race, have a rivalry for years. Wagon R has crossed three generations with seven models during the past 21 years, and the journey is on. Santro, the first mover in the segment, has also crossed three generations but took a break for 4 years as the model was withdrawn in the year 2014 and reintroduced in 2018. Breaks are always good for a fresh start, but was this good for the brand? I doubt whether Hyundai made a mistake while retaining the brand identity of New Santro?

A brand vouches for modification when it reaches the maturity stage of the life cycle. Both Wagon R and Santro on reaching maturity stage also forced a lot of modifications. At this juncture, Hyundai decided to take a break and relaunch while Wagon R came with modifications. The brand identity for both Wagon R and Santro is that of a ‘Tall Boy.’ The Point of Parity is this, while Point of Difference is the performance and mileage. Maruti was very particular in maintaining the identity of Wagon R, all through the product modifications. If we check into the different models, one can quickly identify with the ‘Tall Boy’ image. The Big New Wagon R launched in 2019 seems to be accepted well by consumers, and you can spot more numbers on the road.

The New Santro was launched with much fanfare. The brand was successful in obtaining initial orders at ease. But to me, the brand failed to continue the show. Here comes the importance of Brand Identity. The new Santro to me has compromised on the ‘Tall Boy’ posture, and the Deja Vu(of old Santro) was missing.

Moreover, the brand resembled the other brands such as i10, Grand i10, which creates confusion among the consumers. Is Santro now facing an identity crisis?. It is not a ‘Tall Boy,’ not a replacement for i10, Grand i10, etc. So what is Santro?

Going by the track record of Hyundai, one can assume that Santro will find its space in the market, but my gut feeling is that if they have maintained the “Tall Boy’ posture, it would have been a cakewalk for them.

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