Why is the Santana so cheap now?

[Griffin]

The reduction in costs is a significant factor affecting the price of vehicle models. Here are the specific factors influencing car prices: Production costs: This mainly includes labor costs and machinery costs. When mechanization was not yet widespread, car manufacturing was a relatively difficult task, relying on some machines to construct certain components, far less developed than today's mechanized factories, and requiring a large number of people to assemble various parts of the car. At that time, labor costs were very high. Now, replacing the past labor-intensive car manufacturing model has led to breakthrough improvements in both precision and efficiency. Material costs: The level of material costs is closely related to R&D technology. The selection, forging, and manufacturing methods of materials greatly affect material wastage.

[DanielaFitz]

As an ordinary car enthusiast, I'll talk about why the Santana has become cheaper: mainly due to fierce market competition and slow technological updates. When the Santana was first introduced, it enjoyed immense prestige under the Volkswagen brand, and the higher price was justified—after all, rarity increases value. But now, domestic car brands like Geely and BYD are aggressively launching new models equipped with smart systems and large screens, far more advanced than the Santana. Coupled with the popularity of electric vehicles, the Santana's outdated appearance and basic features seem behind the times, forcing the company to lower prices to maintain sales. Additionally, Volkswagen itself has introduced new models like the Lavida and Bora to divert customers, relegating the Santana to an entry-level option—if it weren't cheap, who would buy it? I also think consumer tastes have changed; young people nowadays prefer tech-savvy SUVs, leading to reduced demand for the old Santana. When sales slump, the only option is to discount, reflecting the rapid iteration of the automotive industry.

[VonDiana]

From personal driving experience, the Santana's affordability makes sense: its technical architecture is outdated. Having driven several generations of cars, the first-gen Santana boasted high-end features like ABS as selling points. But now, new cars come standard with airbags, electronic stability systems, and even autonomous emergency braking—safety standards have risen while the Santana's upgrades haven't kept pace, leading to a relative decline in quality. Production costs have also dropped for manufacturers; Volkswagen's high localization rate and mature local supply chain mean cheaper parts procurement. With rising fuel prices, consumers prefer newer fuel-efficient models, and the Santana's uncompetitive fuel economy squeezes its sales, naturally driving down pricing. As for market dynamics, price declines are further impacted by the used-car market—older Santanas circulate easily due to low maintenance costs, making overpriced new models unattractive. Thus, strategic price cuts target entry-level buyers, aligning with the broader trend of rising living costs but falling car prices.

[RhettFitz]

The main reasons for the Santana becoming cheaper are localization and improved production efficiency. I've observed that Volkswagen's factory scale has expanded, with a high self-sufficiency rate for parts, leading to reduced costs. In the past, it relied on imported components, but now they are locally manufactured, saving on tariffs and shipping costs. Intense market competition is also a factor, with more new brands and hybrid models emerging, shifting the Santana's positioning toward an economical option. These changes have contributed to the price reduction, offering more choices for ordinary families.