
Originally Posted by
jut703
As it was, the outgoing CRV was selling pretty well despite offering nothing except the Honda badge. Now, they updated the 2.0S with all the tech from the Civic in a nice new package. That alone will steal thunder from the CUV frontrunners, the Forester and Tucson.
However, the 2.0S in this case isn't really the CRV's bread and butter variant. It's just there to remind people that the CR-V, even its entry-level gas model, is already ahead of the mid-trim CUV pack. As the sales figures show though, the market for CUVs is small and dwindling further. In fact, the 2.0S is in the equation simply as a price anchor.
Honda isn't out to kill PPVs. Just a niche - that of city-dwelling would-be PPV buyers who are buying PPVs because they're diesel, spacious, and have high ride heights, but have reservations with the ride comfort of PPVs and have no pressing need for 7 seats or rugged underpinnings. It sounds like a very specific niche, but that niche could be bigger than the entire gas-fed CUV-buying demographic altogether, given the huge disparity between CUV and PPV sales.
For just 30k more than the gas CRV, you get a diesel 1.6V CRV. Yes you lose out a bit on features, but you gain 2 extra seats and
lots of savings in terms of fuel costs. At 15,000 km annual mileage, you save about 40k per year in fuel between the gas and diesel variants.
For those who are more discerning and with more cash to burn (this is a big market considering the success of thr Fort V vs the G despite costing 300k more), there's the 1.6S. It comes with all the bells and whistles that the majority of people care about - fancy head unit, fancy lights, big rims, push button ignition.
The 1.6SX serves the exact purpose as the iPhone 7 128GB - an over the top variant that's really just meant to convince people that the mid-range (1.6S and iPhone 7 64GB) isn't too impractical - it's basic human psychology to go for the middle
This isn't a PPV killer, just a more practical alternative (with tremendous brand equity) compared to all other CUVs. For the niche I mentioned above, the argument isn't, "For the price of a CR-V, I'll just get a Fortuner/Montero/Everest because it's more macho/more rugged/more spacious/whatever reason".
Rather, the argument is, "For the price of a PPV, I'll just get a CR-V because it's just as frugal but is more comfortable."
Honda's product positioning for the CR-V is very textbook Marketing 101.
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