Badge engineering is emerging trend in two-wheeler segment

Badge engineering or cross badging seems to be gaining ground in the Indian two-wheeler segment. The increasing product development cost and the need to break-even faster and save money by spreading development and engineering costs over a large number of models are getting bike makers to launch products faster.

The Honda Unicorn and Hunk/Avenger of Hero, HMSI Twister/Stunner and Hero Ignitor and the Honda Activa/Dio and Hero Pleasure, Hero Maestro and Honda Aviator are badge engineered bikes. These bikes are using the shared technology/engine from Honda to maximise sales, say senior officials.

"In large markets there is diversification of demand and for better scale of economy, bike makers are cross badging," said says NK Rattan, HMSI's VP for sales, marketing, planning & corporate affairs (at the time of writing Rattan had put in his papers at HMSI with March 10 as his last day).

The basic engines are kept the same with exteriors changes. The differentiated products give variety to the customer while the basic requirements like fuel efficiency, price remain the same, Rattan said.

Badge engineering is already prevalent among car companies. The VW Vento and the Skoda Rapid , VW Polo and Skoda Fabia, to-be-launched Skoda Citigo and VW Up and the Renault Pulse and the Nissan Micra are all badge engineered cars. Badge engineering is when mechanically its the same car with minor cosmetic changes and a new badge. This is different from platform sharing where components are shared and the interiors and the exteriors are different.

"We are not averse to badge engineering as it helps minimize costs and lead times. Sharing of components, powertrains and platforms are a very common practice globally and the Renault Nissan Alliance helps us leverage multiple platforms across a varied product line for both the companies resulting in economies of scale. We will see a lot more badge engineering than we have so far specially with so many global players coming in," said Marc Nassif, MD Renault India.

In India we have taken advantage of this opportunity to launch some products which are based on common platforms but we will also offer products in the Indian market which carry a strong Renault DNA.

The goal of the Renault-Nissan Alliance is to increase efficiencies across two companies that sell more than 7 million cars per year in nearly 200 countries worldwide.

Some of the biggest efficiencies come from component sharing, which we have been working on with light-commercial vehicles and our passenger cars. We only move forward with platform and component sharing projects when it promotes brand integrity and customer satisfaction, " said Nissan India spokesperson.

In India the Renault-Nissan alliance is using a common platform , components and cross badging to develop two very different cars, with unique designs and different styling cues that appeal to different demographic segments. The Nissan Micra has a more feminine appeal ....and the Renault Pulse a more masculine appeal.

VW, has around 8-9 brands within its portfolio and each brand has a distinct positioning, pricing and appeals to a specific customer.

"We find customers very loyal to brands and like to remain within the family and companies find it better to invest in the same segment on two brands. Badge engineering gives huge cost savings, easier to ramp up and make changes and bring the product quicker to the market and we have been quite sucessful at it , said John Chacko , president and managing director, Volkswagen India.

Cross badging gives better synergies , different characters at different prices with a larger customer base said Adil Jal Darukhanawala.