The big luxury car manufacturers are now finally able to boast about their electric cars. Tesla's model S have been in the market for over 6 years now finally it faces some competition. This competition could seriously impact Tesla's business since Mercedes, Audi and Jaguar have a much larger sales network. All 3 manufacturers also have supercharging capabilities which allow faster charging than Tesla which is very important.
The biggest 2 problems with electric cars is the range and the time taken to charge the batteries. Mercedes' EQC can charge to 80% capacity in 40 minutes while the Audi can charge to 80% capacity in 30 minutes. This really helps especially when the driver needs to utilise the vehicle for long journeys.
The 3 models will take a chunk out of Tesla model X's sales since it is cheaper and more accessible. Tesla currently sells its cars on its own without appointing distributors or dealers. This basically limits its reach and coverage. In countries like Malaysia, Indonesia, Thailand, India and many other developing countries Tesla is not present while Mercedes, Audi and Jaguar already have a dealership network.
It will be a matter of time before BMW, VW, Toyota, Honda and Nissan introduces a flurry of electric cars. The question is how much will this impact Tesla. Will Tesla be able to survive when these giants get into the game. Tesla's trump card will be the gigafactory which aims to produces majority of the batteries for electric cars. The plan for the gigafactory is good but the construction is taking far too long and now China's BYD is teaming up with several battery manufacturers to building their own gigafactory and it appears that the construction have already begun and it progressing at a very rapid pace.
Tesla may have had the edge over the major car manufacturers but it seems like the competition have stepped up a notch and it won't be easy for Tesla to compete unless it changes its strategy. Since numerous Tesla engineers left for other car manufacturers so many new players have emerged making competition very stiff all of a sudden.
The EQC, E-tron and i-Pace may not be as quick as the Model X but it is good enough to rival the Model X and it has gained significant public interest. The electric car industry is really starting to heat up and will be exciting to see how it shapes up.
Monday 24 September 2018
Thursday 20 September 2018
Proton X70 SUV
Proton finally launched the rebadged Geely Boyue as the Proton X70 SUV. This is the first time Proton offered a SUV in its line up. The entry model price is set at RM85,000 which is affordable for a SUV of its size. It is very likely to affect the sales of Honda's HRV and BRV which are priced at RM99,000 and RM85,000. The X70 holds a big advantage since it is larger than both the HRV and BRV and comes with a 1.8 Turbo engine.
Geely put a lot of effort into launching this car in a big way to capture a large slice of the market. The car comes in 4 levels of specification ranging from the basic 2WD to the top of the range 4WD version with a long list of accessories and functionality. For a so called local car it is unheard of to have such high level of specifications. Geely went all out to impress the local buyers to gain confidence for their ability to product decent cars at affordable prices. This of course is the long term strategy to build an image and move to exporting their cars to neighbouring countries such as Indonesia and Thailand. China cars struggle in Indonesia and thailand at the moment with Toyota, Honda and Daihatsu being the kings in these 2 countries. Geely through Proton wants to penetrate these markets.
Prior to the acquisition Proton was in the duldrums with its ageing models and dropping sales. The Malaysian public was sick and tired of the poor quality cars Proton produced and it was right timing that Geely came into the picture.
There is speculation that the Geely Borui sedan model could be introduced as early as mid 2019 to add to the Proton model line up. Proton desperately needs a new sedan model to boost its sales. The X70 will get the momentum going but the next sedan model will definitely boost the sales. It is rumoured that Geely already has plans to introduce 4 models over the next 2-3 years and increase their market share. The important thing now is to restructure the service centres to provide sufficient after sales support. Proton's service centres are notoriously poor in terms of service quality and it is about time that it is revamped to boost customer confidence.
In comparison to Perodua, Proton's after sales service cannot match the service quality of Perodua. the Japanese developed system of Perodua's after sales service is among the best in the industry and Proton needs to emulate this quickly. Selling many new cars is one thing but offering after sales service to meet the demand is just as critical. It will be exciting times ahead for Proton with many new models coming in.
Geely put a lot of effort into launching this car in a big way to capture a large slice of the market. The car comes in 4 levels of specification ranging from the basic 2WD to the top of the range 4WD version with a long list of accessories and functionality. For a so called local car it is unheard of to have such high level of specifications. Geely went all out to impress the local buyers to gain confidence for their ability to product decent cars at affordable prices. This of course is the long term strategy to build an image and move to exporting their cars to neighbouring countries such as Indonesia and Thailand. China cars struggle in Indonesia and thailand at the moment with Toyota, Honda and Daihatsu being the kings in these 2 countries. Geely through Proton wants to penetrate these markets.
Prior to the acquisition Proton was in the duldrums with its ageing models and dropping sales. The Malaysian public was sick and tired of the poor quality cars Proton produced and it was right timing that Geely came into the picture.
There is speculation that the Geely Borui sedan model could be introduced as early as mid 2019 to add to the Proton model line up. Proton desperately needs a new sedan model to boost its sales. The X70 will get the momentum going but the next sedan model will definitely boost the sales. It is rumoured that Geely already has plans to introduce 4 models over the next 2-3 years and increase their market share. The important thing now is to restructure the service centres to provide sufficient after sales support. Proton's service centres are notoriously poor in terms of service quality and it is about time that it is revamped to boost customer confidence.
In comparison to Perodua, Proton's after sales service cannot match the service quality of Perodua. the Japanese developed system of Perodua's after sales service is among the best in the industry and Proton needs to emulate this quickly. Selling many new cars is one thing but offering after sales service to meet the demand is just as critical. It will be exciting times ahead for Proton with many new models coming in.
Second Tier car rental companies vs Tier 1 car rental companies
In recent years I have rented a number of cars in various countries from major car rental companies such as Thifty, Fox, Enterprise and Sixt; and also from second tier car rental companies such as Green Motion. The biggest difference is in the way the car rental companies deal with the customers and also how they make money. The major car rental companies are more professional and their customer service team appear to have greater attention to detail and offer newer cars while the second tier car rental companies do not have such a large fleet and many are a bit older or have higher mileage. The biggest difference is actually in how they make money. I find that the major car companies do not try to scam you out of paying for damages that does not exist or damage that was already there when the car was picked up.
I had the unpleasant experience of dealing with Green Motion at Heathrow which had a sneaky strategy to milk more money from the insurance or the renter claiming there is damage to the car. Upon checking with other friends who also rented cars from the same company, they too experienced the same thing. The officer who received the cars upon return would inspect the car and try to find scratches or dents on the car body and claim the insurance or claim the access for the damage. The car I rented had no new dents nor scratches but the rental car officer claims a new scratch was on the body work and wanted to charge 400 Pounds for the repair which was ridiculous since I could take any polishing compound and rub it out with a cloth! It was clear that they had the intention of making extra money from the insurance claim or the access. they may offer the lowest rental rate for the cars but they had plans to earn more from this tactic.
Be warned when renting cars from second tier car rental companies. Take a video and photos of the entire car (covering every corner for scratches or dents or any markings) and make sure that the damages on the car prior you collecting the car is recorded so you do not fall into their trap. it is time consuming but in the end it will save you a lot of problems and save you arguing with the officer.
I had the unpleasant experience of dealing with Green Motion at Heathrow which had a sneaky strategy to milk more money from the insurance or the renter claiming there is damage to the car. Upon checking with other friends who also rented cars from the same company, they too experienced the same thing. The officer who received the cars upon return would inspect the car and try to find scratches or dents on the car body and claim the insurance or claim the access for the damage. The car I rented had no new dents nor scratches but the rental car officer claims a new scratch was on the body work and wanted to charge 400 Pounds for the repair which was ridiculous since I could take any polishing compound and rub it out with a cloth! It was clear that they had the intention of making extra money from the insurance claim or the access. they may offer the lowest rental rate for the cars but they had plans to earn more from this tactic.
Be warned when renting cars from second tier car rental companies. Take a video and photos of the entire car (covering every corner for scratches or dents or any markings) and make sure that the damages on the car prior you collecting the car is recorded so you do not fall into their trap. it is time consuming but in the end it will save you a lot of problems and save you arguing with the officer.
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