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Shifts in entry level car market amidst changing dynamics
autos.udn.com, 23 Aug '23With the recent departure of the Toyota Yaris from the Taiwanese market and the impending exit of the Nissan Tiida, Taiwan's entry-level car market is undergoing yet another transformative phase.
Fueled by a growing demand for advanced safety technologies, stringent fuel efficiency and emission regulations, the rising costs associated with importing new vehicles, and the surge in cross-border travel trends, domestic car brands are experiencing a resurgence. In contrast to the past emphasis on B-Segment hatchbacks and compact RVs, these brands are now gravitating toward cross-border SUVs, even discontinuing some entry-level models. Consequently, finding affordably priced cars equipped with desirable features has become increasingly challenging.
Surveying the spectrum of starting prices for entry-level domestic car models in Taiwan, the Mitsubishi Colt Plus takes the lead at NTD 539,000 (US$ 16,880), currently reigning as the most affordable passenger car among domestic offerings. The Grand Lancer RV follows closely with a starting price of NTD 672,000. While these prices are competitive within their segment, they reflect the vehicles' age and lack of advanced ADAS safety technologies, thus contributing to their affordability.
Despite being Taiwan's market leader, Toyota stands as one of the few brands with a model priced within the NTD 500,000 range the VIOS, priced at NTD 589,000. However, like others, it lacks advanced safety technology and leans more toward basic features. Recent reports hint at a potential facelift, which may bolster its features but could also lead to an increase in price.
Since Hyundai phased out the small RV Verna and medium-sized RV Elantra in recent years, the brand's entry-level model mantle has been assumed by the small SUV Venue. However, for those seeking enhanced features, mid-level models that breach the NTD 700,000 mark become tempting options, highlighting the increasing difficulty of securing budget-friendly vehicles.
Despite the shifting landscape, several brands still offer entry-level models priced around NTD 700,000. Brands such as Luxgen, Nissan, and Honda present starting prices at or above this mark. Luxgen's current entry-level offering is the U6 NEO, positioned as a mid-sized SUV with a starting price of NTD 758,000, considerably higher than historical entry-level prices.
As Nissan wraps up its Tiida inventory, its entry-level market is poised to be succeeded by the Grand Lancer Nissan Sentra, commencing at NTD 770,000. This represents a significant departure from the previous entry-level pricing, raising speculation about Nissan's potential introduction of alternative entry-level models.
Honda has also refined its product lineup, particularly with the upgraded Fit and the introduction of e: HEV petrol-electric power. This has led to a price increase, with the entry-level Fit now starting at NTD 759,000, offering a more comprehensive package compared to its predecessor.
Among domestic brands, Ford has undergone the most substantial transformation. After discontinuing models like Fiesta and Escort in 2019, the brand no longer offers entry-level options. The 1.5 litre naturally aspirated Focus now fills this role, equipped with Co-Pilot360 intelligent driving assistance and EcoBoost turbo power. While this places the Focus at the forefront of technology, its higher price tag has led to the Ford Focus 5D EcoBoost 182 X starting at NTD 839,000, setting a new threshold for domestic brands.
This month, MG is set to unveil its all-new cross-border SUV ZS, generating excitement and anticipation. Consumers hope that MG, renowned for its "price breaker" reputation in the past, will continue the tradition with an attractive entry-level offering.
In the evolving landscape where ADAS safety technology becomes the norm and manufacturing costs continue to rise, coupled with the trend toward comprehensive car features, returning to previous price levels seems improbable. As new models come into play, future buyers and budget-conscious customers may need to adjust their expectations and allocate slightly more for their new vehicles.
