From budget to middle class: how are car manufacturers changing?

Why are manufacturers not satisfied with their positions and are raising the quality bar higher and higher?

Car market never stands still: not only cars are changing and improving, but also their manufacturers themselves. They migrate from one segment to another.

“This leads to manufacturers simply getting out of the cheapest vehicle segment and moving up,” he adds.

It is not surprising that in the fierce competition, car models improve with each new generation. New design, better engines, the most innovative technologies, more equipment and a slightly increased price.

These brands are representatives of completely different classes, playing in separate price categories. And their products are different.

Another thing is the power of the engine. A premium vehicle shouldn’t struggle going uphill. High power is a sign of a luxury car,” explains M. Buzelis.

“Premium” – luxurious cars that drive well and offer significantly more comfort than mid-range vehicles. In turn, the main advantage of quadricycles in the budget category is their affordable price.

Many will agree that Czech cars are moderately priced, practical, durable and comfortable enough for managers who drive thousands of kilometers a month.

The transformation of the Czech manufacturer began almost a decade ago, when Martin Winterkorn, the head of the Volkswagen AG concern at the time, decided to move the Škoda brand higher in the hierarchy of the automotive industry.

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Huge resources, advanced platforms, latest technologies that can be shared by different car factories.

For example, the new generation Octavia debuted at a very similar time to the 8th generation Volkswagen Golf, which is built on the same MQB platform.

In the cabin, there is a new multimedia system, better finishing materials, and a higher level of sound insulation. These are the attributes of a middle-class car.

Even the smallest Fabia model of the newer generation range is designed not only for the pizza delivery person, but also for the city dweller.

At the time, the Eniyaq iV electric car comes with a bigger screen and more leather interior trim than its twin sibling the ID.4 from Volkswagen.

If Lexus, the luxury car brand created by Toyota, has succeeded in establishing itself, then Nissan’s attempt to create a luxury Infiniti brand in Europe is nowhere to be seen. It’s a similar story with Honda-owned Acura, which currently only exists in North America.

For these reasons, it is much easier for larger car concerns to change the positions of the brands they represent in the market hierarchy and the desired results are achieved faster.