How individual vehicle models evolve into influential sub-brands, shaping consumer perception, supporting brand positioning, and offering manufacturers opportunities to address diverse market needs while balancing innovation, heritage, and differentiation in a competitive automotive landscape.
30 Aug 2025 | 7243 Views | By Aniket Katdare, Ipsos UU
In the automotive industry, a complex relationship exists between a company's overarching brand and its individual vehicle models. Over time, specific models can achieve such prominence that they evolve into powerful sub-brands, often yielding significant benefits for the parent company. A model renowned for reliability can elevate the overall perception ...
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In the automotive industry, a complex relationship exists between a company's overarching brand and its individual vehicle models. Over time, specific models can achieve such prominence that they evolve into powerful sub-brands, often yielding significant benefits for the parent company. A model renowned for reliability can elevate the overall perception of the manufacturer as trustworthy, while one acclaimed for innovation can position the entire brand as an industry pioneer.
Cultivating a diverse portfolio of robust model brands offers numerous strategic advantages, allowing manufacturers to target various market segments effectively without compromising core brand messaging. Each model can develop a distinct identity, addressing specific customer needs and preferences while contributing to overall brand strength.
Global Success Stories
Toyota exemplifies this approach perfectly. With models like Camry, Corolla, Hilux, and Land Cruiser, the company has built an empire on reliability and durability. Each model serves as a testament to Toyota's commitment to quality, reinforcing the brand's core values across diverse segments while maintaining distinct identities that resonate with different customer groups.
Indian Market Dynamics
The Indian automotive landscape presents intriguing results, with manufacturers experiencing varying degrees of success in developing and leveraging model brands.
Mahindra stands as an exemplary Indian success story. The company has skillfully utilized model brands such as Thar and Scorpio, which offer similar capabilities but cater to completely distinct buyer segments. Simultaneously, they've successfully explored market gaps with offerings like the XUV700.
What distinguishes Mahindra's approach is its ability to create and maintain distinct identities for each model. The Thar, XUV, and Scorpio each boasts unique design languages, tailored feature packages, and specific capabilities. This differentiation allows Mahindra to maintain multiple offerings at comparable price points without internal cannibalization, with status and toughness serving as common denominators across the portfolio.
Learning from Market Challenges
The Indian market also offers valuable lessons about the complexities of managing legacy brands. Some manufacturers have faced challenges in effectively managing their established model identities during transitions and updates.
For instance, certain legacy SUV brands have struggled with maintaining their authentic identity while adapting to modern market demands. The challenge lies in balancing heritage appeal with contemporary requirements, particularly when transitioning from traditional SUV characteristics to more family-oriented features.
In the motorcycle segment, different manufacturers have shown varying approaches to brand evolution. While some brands like Pulsar and Apache have maintained consistent growth and market presence since their introduction, others have experienced fluctuations in their brand management strategies.
The premium commuter motorcycle segment illustrates how consistent brand nurturing affects market position. Some manufacturers have faced challenges with nomenclature consistency, such as mixing established brand names with new monikers, or discontinuing and later reintroducing models with different identities. These approaches sometimes require rebuilding brand equity from scratch rather than leveraging existing recognition.
Key Success Factors
The most successful approaches demonstrate several common elements:
Strategic Implications
The power of model brands in shaping overall brand perception is undeniable. This phenomenon continues gaining momentum as the Indian automotive market evolves, consolidates, and matures. Success stories from both global and domestic manufacturers demonstrate that the winning formula lies in the ability to successfully nurture these brand assets.
The Road Ahead
For automakers, the path forward is clear: invest in creating and maintaining strong, distinct identities for individual models, then extend established brands into sub-segments by identifying and addressing market gaps. The Indian automotive landscape, with its fast-growing economy and evolving consumer preferences, presents unique opportunities for manufacturers who can master this delicate balance between innovation and brand identity preservation.
As the market continues maturing, those who understand and implement effective model brand strategies will likely emerge as long-term winners in India's dynamic automotive sector.