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26 July 2018 | AutoData MARKET » ANALYSIS And in the meantime, what sells little sells even less because resale tends to be more difficult and, therefore, lower value. And at this point one of the successes of Corolla, according to Armellini, begins to be explained: “We seek to preserve this item and not to exceed limits of direct sa- les or to the fleet owners. This keeps the brand’s value”. Davoli adds more pepper to the sauce: “Apart from the resale value, it weighs heavily on insurance prices and car re- visions, especially at the time of buying a new car after living with higher values in the model that will be changed. For this reason we have identified buyers of premium vehicles that are returning to the medium sedans: the client calculates and realizes that with the difference of these items sometimes they can pay the college for their son”. For Jorge, of FGV, Hyundai is an exam- ple of howan automaker that enters a new segment can solve the problem well: “It was the first of the high volume brands to offer awarranty of five years, which helps a lot to raise the resale value at the moment of changing a car”. Harris Jr. disagrees a little bit: for him the resale is losing relevance with regard to the purchase decision: “What the cus- tomer really wants even today is comfort and mechanical reliability.” Cristiano, from FCA, sees the issue in a similar way: “Certainly it is still a reason taken into account by the consumer when choosing the vehicle, but it is not on the list of the most relevant ones.” BEING LIKE SHEEP Based on his understanding, the UniAu- to consultant shares interesting vision to explain the remarkable numbers of Corolla in the Country: Hilux. “The Toyota’s pickup truck has a re- putation for being unbreakable and ends up transferring that image to the sedan of the brand. Honda does not have a pickup truck to transfer the reliability of the Civic”. Armellini, from Toyota, agrees: “The image of reliability and quality of Hilux ends up by overflowing to our other vehicles”. Confirming the logic of a more con- servative average profile, the Brazilians also tends to follow a certain behavior of being like sheepwhen deciding on this or that new model to put into their garage, Jorge says: “There is a kind of a general unconscious thing to point out that if a lot of people buy a certain vehicle it is good and, likewise, if it sells little it is because it is bad. It’s a normal trend and not just with cars”. Armellini continues: “Sometimes it’s more like sociology than market analysis”. A true fact is that apparently the Bra- zilian is no longer taken by a prominent item that decides the purchase without any doubts, such as design and price, for example, have represented in the past: the power of thewhole package is curren- tly much more solid. Cristiano, from FCA, attests that “there is no item that stands out in a dislocated way when facing the motivations of a purchase. The decision is motivated by several combined aspects, whether rational or emotional, varying in weight and priorities”. For Armellini, “the purchase is never 100% emotional or 100% rational”. It is formulated, then, a simple and practical recipe for a certain model to sell very, verywell in the Brazilian market: just sell them much earlier. THAT’S HOW IT WORKS The Chevrolet Onix is the perfect example of a car that the more it sells, the more it sells Disclousure/GM
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