Cost leadership:

Cost leadership is establishing a competitive advantage by having the lowest cost of operation in the

industry. Cost leadership is often driven by company efficiency, size, scale, scope and cumulative

experience. When comparing the cost leadership of MG’s hector and KIA’s seltos the retail price of

MG’s hector is 17.28 lakhs and the KIA’s seltos is 16.99 lakhs. The seltos has higher cost leadership

when compared with the hector by having the lowest cost of operations

Differentiation:

Engine type of seltos is 1.5 Petrol Engine and of hector is 1.5L Turbocharged Intercooled and the

displacement (cc) is more or less similar. MG’s hector has features such as break assist, hill assist,

electronic stability program, traction control where seltos has none of these features. Hector also

provides 3 point seat belt for all passengers which makes a competitive advantage.

KIA Seltos

KIA Seltos comes with two types of petrol engines and one diesel motor. The 1.4L turbo petrol is a

powerful engine capable of delivering the power of 140bhp and a peak torque of 242Nm. This

engine pairs with either a 6-speed manual or 7-speed DSG transmission. The 1.5L naturally

aspirated petrol engine paired with a 6-speed manual or CVT delivers the power of 115bhp and

torque of 144Nm. The 1.5L diesel engine produces a peak power of 115bhp and torque of 250Nm. It

mates to a 6-speed manual or automatic transmission. All the engines in the KIA Seltos are BS-VI

compliant.

MG HECTOR

MG Hector features a powerful 1.5L petrol and 2L diesel engine. The petrol version produces power

of 143ps and peak torque of 250Nm, whereas the diesel variant delivers 170ps power and a

maximum torque of 350Nm. The engines mate to a 7-speed dual-clutch transmission system. The
vehicle has a mild hybrid system to counter turbo lag and ensure exceptional performance in city

traffic conditions.