Badge Engineering in the Automotive Industry
Badge engineering, a prevalent strategy in the automotive industry, involves sharing a vehicle platform between different brands. This strategy has been notably successful for Toyota Kirloskar Motor and Maruti Suzuki in India.
What is Badge Engineering?
Badge engineering entails the use of a shared platform or vehicle between manufacturers, allowing them to release similar cars with different brand identities.
- The shared vehicles maintain core design and mechanical elements, with tweaks for brand distinction.
- This allows manufacturers to avoid the costs of designing a new model from scratch.
Historical Context and Examples
- Early Examples: General Motors (GM) started sharing platforms among its brands like Oakland, Oldsmobile, Buick, and Cadillac as early as 1909.
- In India: The Hindustan Motors Ambassador was a rebadged Morris Oxford. Tata's Indica was sold as the Rover CityRover in the UK.
Benefits of Badge Engineering
- Cost Efficiency: Sharing platforms helps in reducing production costs and increasing economies of scale.
- Market Penetration: Allows brands like Maruti Suzuki to reach premium segments and Toyota to access the lower-end market.
- Consumer Choice: Consumers can choose based on brand loyalty, warranty, and dealership convenience.
