City Rover & Tata Indica used Badge Engineering (Photo Courtesy: Wikimedia Commons, Tata Motors)

What is Badge Engineering Technology? Read on

 | 5 minutes read

Auto manufacturers opt for Badge Engineering to cut costs:

Have you ever noticed the striking similarities between two different cars. They just looked like identical twins. You must have wondered that they could have common parents..! But, you thought this could be a coincidence or something and brushed it aside, thinking how this could be true...? Well, the answer to this query is that it’s not fluke. But, it is a sheer planned activity to produce more than one car models with similar looks, features and size using the same DNA. Manufacturers term this activity as Badge Engineering.

What is Badge Engineering:

Designing and manufacturing a completely new car is very costly for any manufacturer. Besides, it is even more difficult to establish a new brand in the market. It takes several years before the brand gets recognition & becomes successful. However, it is comparatively less expensive for the manufacturers to re-badge a product than to create a whole new model from scratch. This practice is known as “Badge Engineering”.

This term originated with an earlier practice of replacing a car’s badge or logo and give it a new identity. Manufacturers normally apply these modifications only to badges and emblems. At times, they even carry out some minor styling updates. This includes cosmetic changes to head-lamps, tail-lamps or the fascias to give the car new look.

In some cases, they may also offer different mechanical components such as the engine, transmission and safety features etc. For e.g. Tata Motors in India marketed the Tata Indica as City Rover after re-badging it by Rover in UK.

How Badge Engineering works:

Manufacturers may implement Badge-Engineering when they own multiple brands and plan to market the same model under different brands. They may even use this practice for selling the same car under multiple brands.

For e.g. GM now owns the erstwhile Daewoo Matiz which it currently makes as Chevrolet Spark in India. However, GM also markets it in different countries as - Baojun Lechi (China), Chevrolet Joy, Chevrolet Lechi (China), Chevrolet Matiz, Formosa Matiz (Taiwan), Holden Barina Spark (Australia and New Zealand) and Pontiac Matiz (South America).

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