Taiwan's domestic mid-size SUV market is experiencing fierce competition, with brands like Ford Lio Ho Motor, 70% owned by Ford Motor, striving to stand out amid rising costs.
Ford Lio Ho's Kuga series models are positioned in the crowded mid-size SUV market, facing stiff competition from numerous rivals that have recently refined their offerings. Significant pricing adjustments have been made in response to this competitive landscape.
Consumers have noticed a substantial increase in the entry-level price for mid-size SUVs due to rising costs. The current starting price has reached approximately NT$1.05 million (approx. US$33,333), with the main market segment falling between NT$1.05 million and NT$1.2 million; some competitors are priced even higher.
In response to this competitive environment, the all-new Ford Kuga lineup, launched on October 2, aims to leverage unique niche advantages. However, it also faces strong competition from entry-level models like the Honda CR-V, Toyota RAV4, Hyundai Tucson L, and MG HS.
To enhance its market position, Ford Lio Ho has introduced the Kuga Vignale model at a suggested price of NT$939,000, focusing on the cost-performance ratio. The Kuga Active model, priced at NT$1.019 million, targets the core market, while the higher-end Kuga ST-Line model, priced at NT$1.139 million, caters to customers across various price ranges.
Industry insiders have analyzed that maintaining an entry-level price below NT$1 million in the domestic mid-size SUV market presents a significant challenge for manufacturers in terms of cost control. However, achieving this could greatly enhance consumer appeal.
Ford Lio Ho has repositioned the Vignale model, previously at the top of the 1.5T lineup, to serve as the entry-level model. The company hopes that consumers will appreciate the opportunity to access similar features at a relatively lower price, with a suggested price of NT$939,000 and a promotional price of NT$919,000 before the end of the year.
The Active model, now positioned as the new mainstay, is priced at NT$999,000. For potential buyers considering a mid-size SUV, this offers an opportunity to enjoy the brand's new-generation technology at a price below NT$1 million.
The NT$1.139 million ST-Line model remains the performance flagship of the lineup. While it offers complete features and strong performance, it is not the primary choice for most domestic consumers, instead serving as an alternative for those seeking more power and all-wheel drive.
In response to domestic market trends and competition, Ford Lio Ho has reduced the prices of the facelifted Kuga series models by NT$60,000 to NT$80,000. The company has distinguished itself from other brands by incorporating AI-based predictive features in its model updates without making significant changes to the powertrain, while still maintaining advanced technology features. This approach aims to attract a new generation of consumers, highlighting technology and AI as key selling points.
