CD Speak: Carmakers Today Are Quick To Respond To The Competition With New Feature Updates, But At Whose Cost

The automotive industry is getting increasingly competitive on the basis of features which are easier to add than it is to improve the car overall

The competitive side of the automotive industry usually drives brands to improve their products and offer more features to the buyers. Rivals keep a close eye on each other to make sure their products do not fall behind the other, in terms of performance, efficiency and now technology. The last criteria in particular has enabled brands to differentiate themselves and expand their feature set more quickly.

When you had to wait for more features

Not too long ago, when one brand would introduce an updated model to put it ahead of its segment rival, the latter would respond with its own changes as part of the next generation update or mid-life facelift. A facelift is typically scheduled to launch three-to-four years after the model was first launched in its present generation. This would also come with cosmetic changes along with additional features and technology.

Baleno got a full series of updates in its first big update in seven years.

That meant buyers would have to wait a few years before they got an improved model from a brand of their preference that was on par with or better than the alternatives.

Speedy response to the competition today

These days, carmakers have reduced the turnaround time for introducing minor feature improvements to their models in response to the competition. Even if the planned facelift is a while away, the carmaker will try to add some technology to the feature list on the existing model as soon as possible.

In some cases, minor updates get rolled out within days of the competition launching a new model with segment-leading features. With more significant updates, the feature can be added a year apart and the facelift could be another year away.

For example, Kia updated the standard safety package of the Sonet and Seltos without a facelift or a change in regulations. Tata recently introduced ADAS and bigger screens on the Harrier and Safari in response to the Mahindra XUV700 even though the facelifted models are due to arrive later. 

What is better for the buyer?

A brand’s ability to respond to its competitor in a short time gives the buyers more features, sooner, which is a positive impact in the short run. It ensures no brand can have a lasting advantage over the competition and leaves the market with more options. However, this could hurt brand relation and brand loyalty over time as it may leave recent buyers feeling shortchanged. 

The difference in the cabin of the top-spec Harrier between December 2022 and February 2023 but not as part of a facelift or generational update.

For example, if you purchased a Tata Harrier last diwali, the fully-loaded version, you missed out on getting it with an even better safety set and better in cabin experience. In less than a year of ownership, your top-of-the-line model has been improved significantly without getting a major facelift. 

While this business practice is fairly prevalent in the world of appliances and gadgets, it’s understood by the consumers as well. There’s also the question of investment involved where a car is usually the second most expensive purchase in a person’s life, and it’s not ideal to have your experience dampened by the very brand you have bought into.

How can carmakers do it better?

Every carmaker is entitled to keep its product plans secret from the market to avoid the risk of information leaks. While connected cars are usually equipped to receive OTA (over-the-air) software-related updates, there must be some way to offer the smaller features to recent buyers of the same generation car (within three months of the rollout of the feature update) for free or at minimal cost.