Rebadged cars are the new trend apparently. One of the most popular and recent rebadged cars can be Baleno and Glanza. The Baleno was cross badged as the Glanza by Toyota.
You might be thinking that this is yet another new technique by the carmakers to cut costs and revive profits. Well, first things first, it isn’t new. Let’s look into the world of cross badging and what it exactly is.
What is Rebadgding?
Rebadging or badge engineering is applying for a different brand or trademark to an existing product. This product is then sold as a distinct one. Carmakers usually opt for rebadging cars to reduce the costs.
Rebadging of a vehicle is preferable because of the easiness that comes with it. Although the innovation aspect isn’t present, it has a list of advantages and disadvantages attached to it.
Why Companies Go For Rebadging? | Car Rebadging
Rebadging seems to be the go-to option for many carmakers. This is due to the following reasons:
a) Reduced Costs: Rebadging helps a carmaker to reduce its costs. A rebadged car won’t require a new design and R&D. Investing in smaller equipment to modify the car costs way lesser than manufacturing a new car from scratch.
b) Success Partners: When a car is rebadged and sold as a distinct product, it is essentially cashing in on gained goodwill. The goodwill and the reputation that the car has acquired over the years is enjoyed by another brand.
c) Economies of Scale: The term economies of scale usually refers to reducing costs by producing more. Rebadging allows that as the products are made using the same parts. This reflects in the final price to the consumer. Making the car attractive in a price-sensitive market.
Should They Be Doing It? | Car Rebadging
Car rebadging can turn out to be a risky ride. The strategy can bode well for the brand and backfire as well.
Here are a few disadvantages that rebadging brings with itself.
a) Brand Image: Hasn’t there been a moment where you got confused and said “Toyota’s Baleno?” when you saw the Glanza. That’s our point. If a brand relies on the car rebadging strategy for long, it can hamper the brand’s image in the long run.
b) Lack of Innovation: Reliance on car rebadging can hamper the scale of innovation for a company. An example here can be Chevrolet in India. Most of the cars from the brand were rebadged models. We know how they turned out.
Also Read: MG Hector | What Went RIGHT For MG in India?
Top 10 Cars Rebadged in India | Car Rebadging
Tata Indica and City Rover
Yes, the beloved Tata Indica was a rebadged model of the City Rover. The Tata Indica has etched into the Indian hearts so much, it is rather impossible to see it as some other model or brand.
While the Indica made its place here, the story in Britain wasn’t so good for the CityRover. It was termed as ’10 Worst Cars of the Last 25 Years’.
Maruti Suzuki Baleno and Toyota Glanza
This is one of the associations which cannot be ignored. The Toyota and Maruti car rebadging partnership was for the Baleno. Maruti’s premium hatchback had raked in good numbers for them, so Toyota wanted to hop on the bandwagon too.
Moreover, Toyota will sell four Maruti cars as rebadged versions in India. So, a win-win situation for both the carmakers at the end.
Subaru Forester as Chevrolet Forester
The Subaru Forester was a rare sight in the country. Chevrolet brought the car as the Chevrolet Forester in India way back. It was a completely worth it car with impeccable design and powerful engine.
As mentioned in one of our articles, Chevrolet failed to market the car good in India, which resulted in its demise.
Skoda Rapid and Volkswagen Vento
The Skoda Rapid and Volkswagen are two competent cars. Both of them are VW bred and have an amazing performance. But the place where Skoda Rapid wins over the Volkswagen Vento is – the looks. The sharp lines on the side and on the bonnet give the car a more interesting look.
However, this is an interesting car rebadging strategy here. The Skoda Rapid starts off cheaper than the Vento but the higher-end model of the Vento is priced above than the Rapid’s same model.
Morris Oxford as Ambassador
Yes, the good old’ Ambassador is, in fact, a British car. The car which has made its place into the Indian hearts took its design inspiration from Morris Oxford Series 3.
This shows how old car rebadging has been in place.
Renault Duster as Nissan Terrano
The Renault Duster is one of its kind cars. It started the entire compact SUV craze in the country. Seeing this, Nissan decided to come up with the Terrano to get into the party.
While initially, it boded well for both the cars, eventually Duster was able to hold. However, the market share of the Terrano declined to a slow death.
Daewoo Matiz as Chevrolet Spark
When GM took over the defunct Daewoo factory, they had an idea. It decided to rebadge the Daewoo Matiz as the Chevrolet Spark. It did do well for Chevrolet as an entry-level car for the Indian market.
Nissan Micra and Renault Pulse
The Renault Pulse is positioned lower than its Nissan sibling, the Micra. However, Renault’s offering has a lot more to offer than the Micra when it comes to features.
Renault Logan and Mahindra Verito
Mahindra and Renault entered the JV agreement way back. But it didn’t work as Mahindra wanted it to. However, Renault decided to end the partnership in 2010 but Mahindra had different plans. It retained the rights and sold the Logan as Verito and a hatchback version, the Verito Vibe.
Fiat 1100D and Premier Padmini
For all the Mumbai folks, this is your very own ‘kaali-peeli’. The car was declared as a classic in the Indian markets.
Car rebadging is a rather good way to market your cars in a competitive market. However, can it turn out profitable in the long run, that isn’t for sure yet.
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