Readers tell survey in automotive publication that C-Class and S-Class are the best cars

Stuttgart - The Mercedes-Benz C-Class is the best medium-size car, whilst the innovative S-Class is the best car in the luxury category. This is the result of the latest reader survey by the specialist automotive publication “auto, motor und sport”. It had asked readers to name the best cars of the year. Mercedes-Benz is continuing a grand tradition, for every year cars with the star earn top places as the readers’; favourites.

Some 112,471 readers took part in this year’;s vote organised by specialist car magazine “auto, motor und sport” to find the best car of the year. Models from Mercedes-Benz succeeded in securing 2 pole positions: the S-Class won in the luxury category, whilst the C-Class was the resounding winner in the medium-size category.

This acknowledgement consolidates the reputation of the S-Class as a technological trendsetter and the epitome of luxurious travel. The saloon boasts innovative safety systems and is the first vehicle worldwide to feature suspension technology that is even able to react in advance to road unevenness. It therefore offers an unprecedented level of ride comfort.

The C-Class won favour with the readers with its modern, aesthetic design, high-class interior and also cutting-edge technology. Its features include exemplary safety and high efficiency, and it boasts sporty and agile handling.

Readers tell survey in automotive publication that C-Class and S-Class are the best cars

Survey finds that very first Geely EC7 customers are still smiling

• Very first Geely EC7 customers still smiling


• Distances of up to 45 000 covered in just 18 months


• Value for money, economy and trouble-free ownership praised

What do an aircraft engineer, a technician, a teacher and a retired couple that are all living a happy life with a broad smile every day, have in common? In this case they all drive the exciting Geely EC7 sedan, which was launched in South Africa last year.

An independent survey conducted by Outlook Africa revealed that each of the owners we spoke to, was extremely happy with their purchase. Comments such as “outstanding value for money” and “the best car we could have bought” were part of each of the interviews conducted by phone.

The Geely Emgrand EC7 was launched in May 2013 as the luxury division of Geely. The EC7 is a high-quality luxury sedan with high spec as part of a vision to establish a new range for the discerning buyer, but at an affordable price. The EC7 starts at a surprisingly low R164 990 for the Luxury and R174 990 for the Executive version, offering buyers outstanding value for money.

Travelling distances of only 7 000 kilometres to nearly 45 000 from May last year to September 2014, each and every customer we spoke to expressed 100% satisfaction with their choice of daily transport.

Quintin Morris, an instrument technician at South African Airways in Kempton Park in Gauteng, uses his Geely EC7 Luxury for his daily commute between Pretoria and the East Rand.

“My car is approaching its 45 000 km service date soon, and apart from a blown headlight, I have never had any problems with my EC7.” Coming from a man who earns his living by working in the high tech world of aviation equipment, this is a very positive eulogy.

“A colleague of mine followed my example and bought the Executive model, and apart from an extra side airbag, electronic niceties such as traction control and electric adjustment of the driver’;s seat, the only visible difference is the sunroof. I am extremely happy with my car. The 1800cc engine is more than adequate, not to mention the high levels of standard equipment.”

This was echoed by James Enslin from Sasolburg, who uses his car mainly on the open road at speeds of “somewhere between 120 and 130″ to stay out of trouble.

“I get around 14 kilometres to the litre, which is outstanding for a 1.8 at those speeds. I used to drive a Volvo (and many other cars), and the Geely does not shy away from any of them. The build quality is extremely good, and the engine is perfect,” says this mechanical fitter with 33 years experience at Sasol.

“After 9 700 km the car is still as good as the day I bought it over a year ago,” he says.

Mr William Maluleka, a teacher from Germiston, says overall his experience is “so far, so good”.

“The EC7 offers more equipment than I expected, so I am very happy. It really is a very nice car with excellent quality. After 19 000 km the fuel consumption is quite reasonable – not bad for a 1.8 engine; not bad at all.”

Maluleka regularly travels to Giyani in Limpopo, covering the distance of well over 520 km on a single tank. “And then I still have enough petrol to drive around.”

In the Western Cape, Mrs Barbara Millward believes she was the very first customer in the province – “and probably the whole country” – to receive her EC7 Lux. “Apart from the car being just absolutely perfect, the after-sales service I receive from Geely Goodwood is fantastic. Although I would have preferred an automatic transmission, the car drives easily and without any effort whatsoever. We only drive around town and according to my husband get around 13km/litre, but we are planning to take on the open road to Mossel Bay or Port Owen soon. I am sure we will again be surprised by the quality, feel and brilliant performance.”

Quintin Morris also praised the service he receives from Geely in Gezina, where he bought his car in May last year. “Maybe I was the first owner.”

The Geely EC7 is available at all Geely dealerships and distributors in all 9 provinces in South Africa, as well as in Namibia and most of South Africa’;s neighbouring countries.

Survey finds that very first Geely EC7 customers are still smiling

Survey finds that very first Geely EC7 customers are still smiling

• Very first Geely EC7 customers still smiling


• Distances of up to 45 000 covered in just 18 months


• Value for money, economy and trouble-free ownership praised

What do an aircraft engineer, a technician, a teacher and a retired couple that are all living a happy life with a broad smile every day, have in common? In this case they all drive the exciting Geely EC7 sedan, which was launched in South Africa last year.

An independent survey conducted by Outlook Africa revealed that each of the owners we spoke to, was extremely happy with their purchase. Comments such as “outstanding value for money” and “the best car we could have bought” were part of each of the interviews conducted by phone.

The Geely Emgrand EC7 was launched in May 2013 as the luxury division of Geely. The EC7 is a high-quality luxury sedan with high spec as part of a vision to establish a new range for the discerning buyer, but at an affordable price. The EC7 starts at a surprisingly low R164 990 for the Luxury and R174 990 for the Executive version, offering buyers outstanding value for money.

Travelling distances of only 7 000 kilometres to nearly 45 000 from May last year to September 2014, each and every customer we spoke to expressed 100% satisfaction with their choice of daily transport.

Quintin Morris, an instrument technician at South African Airways in Kempton Park in Gauteng, uses his Geely EC7 Luxury for his daily commute between Pretoria and the East Rand.

“My car is approaching its 45 000 km service date soon, and apart from a blown headlight, I have never had any problems with my EC7.” Coming from a man who earns his living by working in the high tech world of aviation equipment, this is a very positive eulogy.

“A colleague of mine followed my example and bought the Executive model, and apart from an extra side airbag, electronic niceties such as traction control and electric adjustment of the driver’;s seat, the only visible difference is the sunroof. I am extremely happy with my car. The 1800cc engine is more than adequate, not to mention the high levels of standard equipment.”

This was echoed by James Enslin from Sasolburg, who uses his car mainly on the open road at speeds of “somewhere between 120 and 130″ to stay out of trouble.

“I get around 14 kilometres to the litre, which is outstanding for a 1.8 at those speeds. I used to drive a Volvo (and many other cars), and the Geely does not shy away from any of them. The build quality is extremely good, and the engine is perfect,” says this mechanical fitter with 33 years experience at Sasol.

“After 9 700 km the car is still as good as the day I bought it over a year ago,” he says.

Mr William Maluleka, a teacher from Germiston, says overall his experience is “so far, so good”.

“The EC7 offers more equipment than I expected, so I am very happy. It really is a very nice car with excellent quality. After 19 000 km the fuel consumption is quite reasonable – not bad for a 1.8 engine; not bad at all.”

Maluleka regularly travels to Giyani in Limpopo, covering the distance of well over 520 km on a single tank. “And then I still have enough petrol to drive around.”

In the Western Cape, Mrs Barbara Millward believes she was the very first customer in the province – “and probably the whole country” – to receive her EC7 Lux. “Apart from the car being just absolutely perfect, the after-sales service I receive from Geely Goodwood is fantastic. Although I would have preferred an automatic transmission, the car drives easily and without any effort whatsoever. We only drive around town and according to my husband get around 13km/litre, but we are planning to take on the open road to Mossel Bay or Port Owen soon. I am sure we will again be surprised by the quality, feel and brilliant performance.”

Quintin Morris also praised the service he receives from Geely in Gezina, where he bought his car in May last year. “Maybe I was the first owner.”

The Geely EC7 is available at all Geely dealerships and distributors in all 9 provinces in South Africa, as well as in Namibia and most of South Africa’;s neighbouring countries.

Survey finds that very first Geely EC7 customers are still smiling

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

One in every 3 South African owners rated price as the most important purchase decision influencer, according to a recent study conducted by Ipsos. Price is followed by brand reputation, with roughly 16% of car owners placing great importance on the latter aspect.

This indicates that although price matters; vehicle quality, pre- and post-sales service (which contribute to brand reputation) are a key consideration for local automotive purchases; including lower-costing, ‘entry level’ buys. Adding to this, a review of official sales figures for the period October 2013 to March 2014 revealed that the more established, entry level automotive brands grew market share – of between 1% and 6%.  This is in contrast with lower-priced, new entrant brands which recorded losses in market share ranging between -1% and -4% during the same period.

It therefore appears that even for low cost vehicles, South African consumers prefer to buy a car with ‘good return’ in terms of durability, dependability and trade-in value. In some cases, opting for the lower priced, new entrant brand can come with draw backs, such as limited service and warranty plans. A few of the new entrants, low cost automotive suppliers offer 3 year / 45,000 km service plans as compared with the more established automotive brands that offer 5 year / 100,000 km service plans for new vehicle purchases ( and this includes their entry level models). Some of the new, lower-priced entrants are also much lighter on innovation and do not have boot lights, electric windows or radio.

According to Klaus Paur, Head of Ipsos’ Global Automotive, “consumers within recession-plagued and emerging markets look for the famous ‘value-for-money’ offer by demanding practical functionality while skipping on non-essential gadgets”.  To avoid negative image effects caused by these stripped down versions, some vehicle makers have an interest to protect the core marque, and launch their low cost offering under a different (budget) brand”

In South Africa, it would be a wise approach to follow for those leading automotive brands suffering a decline in sales volumes in their new entrant brands during the October 2013 to March 2014 period. With consumers prioritising quality, leading global suppliers have adopted an approach that has seen them manufacture market-entry level models that carry the car maker’s brand and are produced at quality standards similar to their higher level model ranges. Based on experiences in the developed world and other developing markets, the more established automotive suppliers are convinced that the adoption of this strategy is expected to deliver success within entry-level markets where price and brand reputation are the most important purchase decision influencers.

By James Maposa and Klaus Paur

Also view:

Vehicle Finance, Car Insurance and Road Safety

Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across 6 research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,712,4 million (2 274 M$ ) in 2013.

Visit www.ipsos.co.za to learn more about Ipsos’ offerings and capabilities.

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

One in every 3 South African owners rated price as the most important purchase decision influencer, according to a recent study conducted by Ipsos. Price is followed by brand reputation, with roughly 16% of car owners placing great importance on the latter aspect.

This indicates that although price matters; vehicle quality, pre- and post-sales service (which contribute to brand reputation) are a key consideration for local automotive purchases; including lower-costing, ‘entry level’ buys. Adding to this, a review of official sales figures for the period October 2013 to March 2014 revealed that the more established, entry level automotive brands grew market share – of between 1% and 6%.  This is in contrast with lower-priced, new entrant brands which recorded losses in market share ranging between -1% and -4% during the same period.

It therefore appears that even for low cost vehicles, South African consumers prefer to buy a car with ‘good return’ in terms of durability, dependability and trade-in value. In some cases, opting for the lower priced, new entrant brand can come with draw backs, such as limited service and warranty plans. A few of the new entrants, low cost automotive suppliers offer 3 year / 45,000 km service plans as compared with the more established automotive brands that offer 5 year / 100,000 km service plans for new vehicle purchases ( and this includes their entry level models). Some of the new, lower-priced entrants are also much lighter on innovation and do not have boot lights, electric windows or radio.

According to Klaus Paur, Head of Ipsos’ Global Automotive, “consumers within recession-plagued and emerging markets look for the famous ‘value-for-money’ offer by demanding practical functionality while skipping on non-essential gadgets”.  To avoid negative image effects caused by these stripped down versions, some vehicle makers have an interest to protect the core marque, and launch their low cost offering under a different (budget) brand”

In South Africa, it would be a wise approach to follow for those leading automotive brands suffering a decline in sales volumes in their new entrant brands during the October 2013 to March 2014 period. With consumers prioritising quality, leading global suppliers have adopted an approach that has seen them manufacture market-entry level models that carry the car maker’s brand and are produced at quality standards similar to their higher level model ranges. Based on experiences in the developed world and other developing markets, the more established automotive suppliers are convinced that the adoption of this strategy is expected to deliver success within entry-level markets where price and brand reputation are the most important purchase decision influencers.

By James Maposa and Klaus Paur

Also view:

Vehicle Finance, Car Insurance and Road Safety

Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across 6 research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,712,4 million (2 274 M$ ) in 2013.

Visit www.ipsos.co.za to learn more about Ipsos’ offerings and capabilities.

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

One in every 3 South African owners rated price as the most important purchase decision influencer, according to a recent study conducted by Ipsos. Price is followed by brand reputation, with roughly 16% of car owners placing great importance on the latter aspect.

This indicates that although price matters; vehicle quality, pre- and post-sales service (which contribute to brand reputation) are a key consideration for local automotive purchases; including lower-costing, ‘entry level’ buys. Adding to this, a review of official sales figures for the period October 2013 to March 2014 revealed that the more established, entry level automotive brands grew market share – of between 1% and 6%.  This is in contrast with lower-priced, new entrant brands which recorded losses in market share ranging between -1% and -4% during the same period.

It therefore appears that even for low cost vehicles, South African consumers prefer to buy a car with ‘good return’ in terms of durability, dependability and trade-in value. In some cases, opting for the lower priced, new entrant brand can come with draw backs, such as limited service and warranty plans. A few of the new entrants, low cost automotive suppliers offer 3 year / 45,000 km service plans as compared with the more established automotive brands that offer 5 year / 100,000 km service plans for new vehicle purchases ( and this includes their entry level models). Some of the new, lower-priced entrants are also much lighter on innovation and do not have boot lights, electric windows or radio.

According to Klaus Paur, Head of Ipsos’ Global Automotive, “consumers within recession-plagued and emerging markets look for the famous ‘value-for-money’ offer by demanding practical functionality while skipping on non-essential gadgets”.  To avoid negative image effects caused by these stripped down versions, some vehicle makers have an interest to protect the core marque, and launch their low cost offering under a different (budget) brand”

In South Africa, it would be a wise approach to follow for those leading automotive brands suffering a decline in sales volumes in their new entrant brands during the October 2013 to March 2014 period. With consumers prioritising quality, leading global suppliers have adopted an approach that has seen them manufacture market-entry level models that carry the car maker’s brand and are produced at quality standards similar to their higher level model ranges. Based on experiences in the developed world and other developing markets, the more established automotive suppliers are convinced that the adoption of this strategy is expected to deliver success within entry-level markets where price and brand reputation are the most important purchase decision influencers.

By James Maposa and Klaus Paur

Also view:

Vehicle Finance, Car Insurance and Road Safety

Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across 6 research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,712,4 million (2 274 M$ ) in 2013.

Visit www.ipsos.co.za to learn more about Ipsos’ offerings and capabilities.

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

One in every 3 South African owners rated price as the most important purchase decision influencer, according to a recent study conducted by Ipsos. Price is followed by brand reputation, with roughly 16% of car owners placing great importance on the latter aspect.

This indicates that although price matters; vehicle quality, pre- and post-sales service (which contribute to brand reputation) are a key consideration for local automotive purchases; including lower-costing, ‘entry level’ buys. Adding to this, a review of official sales figures for the period October 2013 to March 2014 revealed that the more established, entry level automotive brands grew market share – of between 1% and 6%.  This is in contrast with lower-priced, new entrant brands which recorded losses in market share ranging between -1% and -4% during the same period.

It therefore appears that even for low cost vehicles, South African consumers prefer to buy a car with ‘good return’ in terms of durability, dependability and trade-in value. In some cases, opting for the lower priced, new entrant brand can come with draw backs, such as limited service and warranty plans. A few of the new entrants, low cost automotive suppliers offer 3 year / 45,000 km service plans as compared with the more established automotive brands that offer 5 year / 100,000 km service plans for new vehicle purchases ( and this includes their entry level models). Some of the new, lower-priced entrants are also much lighter on innovation and do not have boot lights, electric windows or radio.

According to Klaus Paur, Head of Ipsos’ Global Automotive, “consumers within recession-plagued and emerging markets look for the famous ‘value-for-money’ offer by demanding practical functionality while skipping on non-essential gadgets”.  To avoid negative image effects caused by these stripped down versions, some vehicle makers have an interest to protect the core marque, and launch their low cost offering under a different (budget) brand”

In South Africa, it would be a wise approach to follow for those leading automotive brands suffering a decline in sales volumes in their new entrant brands during the October 2013 to March 2014 period. With consumers prioritising quality, leading global suppliers have adopted an approach that has seen them manufacture market-entry level models that carry the car maker’s brand and are produced at quality standards similar to their higher level model ranges. Based on experiences in the developed world and other developing markets, the more established automotive suppliers are convinced that the adoption of this strategy is expected to deliver success within entry-level markets where price and brand reputation are the most important purchase decision influencers.

By James Maposa and Klaus Paur

Also view:

Vehicle Finance, Car Insurance and Road Safety

Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across 6 research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,712,4 million (2 274 M$ ) in 2013.

Visit www.ipsos.co.za to learn more about Ipsos’ offerings and capabilities.

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

One in every 3 South African owners rated price as the most important purchase decision influencer, according to a recent study conducted by Ipsos. Price is followed by brand reputation, with roughly 16% of car owners placing great importance on the latter aspect.

This indicates that although price matters; vehicle quality, pre- and post-sales service (which contribute to brand reputation) are a key consideration for local automotive purchases; including lower-costing, ‘entry level’ buys. Adding to this, a review of official sales figures for the period October 2013 to March 2014 revealed that the more established, entry level automotive brands grew market share – of between 1% and 6%.  This is in contrast with lower-priced, new entrant brands which recorded losses in market share ranging between -1% and -4% during the same period.

It therefore appears that even for low cost vehicles, South African consumers prefer to buy a car with ‘good return’ in terms of durability, dependability and trade-in value. In some cases, opting for the lower priced, new entrant brand can come with draw backs, such as limited service and warranty plans. A few of the new entrants, low cost automotive suppliers offer 3 year / 45,000 km service plans as compared with the more established automotive brands that offer 5 year / 100,000 km service plans for new vehicle purchases ( and this includes their entry level models). Some of the new, lower-priced entrants are also much lighter on innovation and do not have boot lights, electric windows or radio.

According to Klaus Paur, Head of Ipsos’ Global Automotive, “consumers within recession-plagued and emerging markets look for the famous ‘value-for-money’ offer by demanding practical functionality while skipping on non-essential gadgets”.  To avoid negative image effects caused by these stripped down versions, some vehicle makers have an interest to protect the core marque, and launch their low cost offering under a different (budget) brand”

In South Africa, it would be a wise approach to follow for those leading automotive brands suffering a decline in sales volumes in their new entrant brands during the October 2013 to March 2014 period. With consumers prioritising quality, leading global suppliers have adopted an approach that has seen them manufacture market-entry level models that carry the car maker’s brand and are produced at quality standards similar to their higher level model ranges. Based on experiences in the developed world and other developing markets, the more established automotive suppliers are convinced that the adoption of this strategy is expected to deliver success within entry-level markets where price and brand reputation are the most important purchase decision influencers.

By James Maposa and Klaus Paur

Also view:

Vehicle Finance, Car Insurance and Road Safety

Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across 6 research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,712,4 million (2 274 M$ ) in 2013.

Visit www.ipsos.co.za to learn more about Ipsos’ offerings and capabilities.

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

One in every 3 South African owners rated price as the most important purchase decision influencer, according to a recent study conducted by Ipsos. Price is followed by brand reputation, with roughly 16% of car owners placing great importance on the latter aspect.

This indicates that although price matters; vehicle quality, pre- and post-sales service (which contribute to brand reputation) are a key consideration for local automotive purchases; including lower-costing, ‘entry level’ buys. Adding to this, a review of official sales figures for the period October 2013 to March 2014 revealed that the more established, entry level automotive brands grew market share – of between 1% and 6%.  This is in contrast with lower-priced, new entrant brands which recorded losses in market share ranging between -1% and -4% during the same period.

It therefore appears that even for low cost vehicles, South African consumers prefer to buy a car with ‘good return’ in terms of durability, dependability and trade-in value. In some cases, opting for the lower priced, new entrant brand can come with draw backs, such as limited service and warranty plans. A few of the new entrants, low cost automotive suppliers offer 3 year / 45,000 km service plans as compared with the more established automotive brands that offer 5 year / 100,000 km service plans for new vehicle purchases ( and this includes their entry level models). Some of the new, lower-priced entrants are also much lighter on innovation and do not have boot lights, electric windows or radio.

According to Klaus Paur, Head of Ipsos’ Global Automotive, “consumers within recession-plagued and emerging markets look for the famous ‘value-for-money’ offer by demanding practical functionality while skipping on non-essential gadgets”.  To avoid negative image effects caused by these stripped down versions, some vehicle makers have an interest to protect the core marque, and launch their low cost offering under a different (budget) brand”

In South Africa, it would be a wise approach to follow for those leading automotive brands suffering a decline in sales volumes in their new entrant brands during the October 2013 to March 2014 period. With consumers prioritising quality, leading global suppliers have adopted an approach that has seen them manufacture market-entry level models that carry the car maker’s brand and are produced at quality standards similar to their higher level model ranges. Based on experiences in the developed world and other developing markets, the more established automotive suppliers are convinced that the adoption of this strategy is expected to deliver success within entry-level markets where price and brand reputation are the most important purchase decision influencers.

By James Maposa and Klaus Paur

Also view:

Vehicle Finance, Car Insurance and Road Safety

Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across 6 research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,712,4 million (2 274 M$ ) in 2013.

Visit www.ipsos.co.za to learn more about Ipsos’ offerings and capabilities.

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

People’s Wheels Awards survey – a chance to win R25 000

The Standard Bank People’s Wheels Awards survey is back! The 4th installment of the annual popular poll and vehicle ownership survey is officially underway from yesterday – June 23.

By logging on to www.peopleswheels.co.za, motorists have the opportunity to win R25 000 by answering questions about the cars they own and by voting for the cars they wish they owned – the ones they think stand above their peers in each of the 22 categories. In determining the winners, voters have hundreds of models from which to choose. The range spans budget city runabouts to the most exotic sports cars, from bakkies to luxurious SUVs and rugged 4x4s.

The surveys are set to run until August 29. By taking part in the People’s Wheels Poll, voters will help to determine the most popular car in each of the categories as well as an overall winner – the vehicle that garners the most number of votes.

By taking part in the ownership survey they will help to determine which cars they rate highest in terms of the ownership experience, from the actual purchase experience to the drive; from build quality to reliability; from interior comfort to performance; from financing options to cargo capacity; from after sales service to running costs; from looks and styling to economy; from preferred fuel and tyre replacement brands to safety features.

The survey, sponsored by Standard Bank, is brought to you by the Future Group in partnership with the Sunday Times and research house TNS South Africa.

For more information, please visit www.peopleswheels.co.za or follow @AutoAnnualZA on Twitter.

ABOUT THE FUTURE GROUP

Future Group has a proud 17 year history of providing premium quality, well-respected products and services for the Media, Automotive, Business Travel, Corporate, Hunting and Outdoor sectors. The business also provides strategic marketing communications, hosts leading events, and publishes industry-leading reference publications. A portfolio of events that includes: MTN Radio Awards; ON AIR Radio Conference; the Future of Media and Advertising Conference; Business Traveller Africa Awards;  People’s Wheels Awards as well as publications such as The Annual; the Redzone magazine; The Auto Annual; IMPERIAL Auto, Future Trucking & Logistics, Fleet, and Automobil.

For more information, visit www.thefuturegroup.co.za.

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People’s Wheels Awards survey – a chance to win R25 000