1/ According to some sneaky industry insiders, Honda is trying to cut costs by offering a single-pane electric sunroof in the upcoming Elevate SUV. " Why spend a fortune on a panoramic sunroof when we can save enough to buy a lifetime supply of doughnuts?" š©šø
2/ Reportedly, a single-pane electric sunroof costs anywhere between $500 and $2000. On the other hand, those extravagant panoramic sunroofs can cost between $1000 and $3500. That's enough money to buy a fancy beach umbrella! šļøāļø
3/ If the cost savings are extrapolated, then it leads to a jaw-dropping $7.2 million in cost savings for Honda! š¤š° Assuming the Honda Elevate captures just one-tenth of its rivalās market share, the Hyundai Creta. That's a significant amount of money Honda could invest in more beach umbrellas or even sponsor a tropical vacation for some Elevate owners! š“š¹š
4/ Who needs a panoramic view of the sky when you can experience the thrill of a slightly smaller sunroof at a fraction of the cost? šš And let's not forget that the Kia Seltos, rocking a single-pane sunroof just like the Elevate, is already making waves in the segment.
Estimated Cost Savings: $7.2 Mn. per annum
Cost Optimisation Impact:
1/ In the end, let's give Honda a round of applause for its cost-cutting wisdom and hope that the Elevate shines bright, proving that you don't need a panoramic sunroof to enjoy the ride. Who knows, maybe it'll become the talk of the townāa budget-friendly SUV with a sunroof that's small but full of dreams (and a few extra dollars in your pocket). šš°āØ
Country: India š®š³
Company: Honda Cars India Ltd. š
Industry: Automotive šļø
Cost Element: Material Consumption š¦
Nature: Opex š¼š
Cost Classification: Variable Cost + Direct Materials Cost š¢š¼
Source: May 15, 2023 | DriveSpark | https://www.drivespark.com/four-wheelers/2023/honda-elevate-debut-date-confirmed-new-teaser-reveals-cost-cutting-037949.html
The Calculation
Conservative Estimate of Honda Elevate car sales per month -> 1,200 units (Taking 1/10th of Hyundai Creta 6 Average monthly sales for FY 2022-23)
Car sales per annum -> 14,400 units
Cost savings due to single-pane electric sunroof -> $500 ($1000 - $500)
Estimated Cost savings for Honda per annum -> $7.2 Million per annum
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