In a recent announcement, Kia India revealed that a study carried out by Frost and Sullivan had found that the Sonet diesel offered the lowest Total Cost of Ownership (TCO) in its segment. The Sonet petrol meanwhile offered the second lowest TCO in the segment. As per the study, the Sonet petrol and diesel’s residual value at the end of 5 years was higher than the segment average while both also offered lower acquisition, insurance and maintenance costs.
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The report revealed that the Sonet Diesel offered the best in segment Insurance and Finance costs, Maintenance costs and Fuel Cost over five years. The petrol matched the diesel for maintenance costs though it fell below two rivals in other categories. The report took into consideration several variables for the calculation of TCO including acquisition cost, operational cost and Residual value (resale value).
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It should be noted that the study followed several parameters including that the vehicle had a life span of 5 years and was only driven 10,000 km per year. Furthermore, the vehicle’s ARAI-rated fuel efficiency figures were used in the computation of fuel costs over 5 years while buyers were assumed to have paid 80 per cent of the vehicle’s ex-showroom price through financing and EMIs. Additionally, only scheduled maintenance parts were factored in running costs (accident repairs were not considered). Residual values were based on inputs from used car dealers and online portals.
Other important parameters in the study included a geographical limitation to just New Delhi and the consideration of only comprehensive insurance for the vehicles involved.
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The study found that the Sonet offered a 3 per cent higher residual value than the segment average along with up to 16 per cent lower maintenance costs. The diesel also offered 8 per cent lower acquisition cost compared to the segment average and 6 per cent lower fuel costs. Overall the study found the Sonet diesel to be the most value for money with a TCO 10 per cent lower than the segment average while the Sonet petrol was second best in the segment (4 per cent below the average).
The study compared the Sonet petrol with five rivals while the diesel was compared with three.
While applicable for the current pre-facelift model, Hardeep Singh Brar, VP and Head of Marketing and Sales, Kia India said that the TCO was unlikely to have any major changes for the upcoming Sonet facelift. Speaking at a media round table Brar said that while acquisition cost would go up with the upcoming facelift it the updated subcompact SUV would also see an increase in residual value thus keeping any changes negligible.
He however added that Kia could look back at the study in 2024 post the launch of the Sonet facelift.
