Maruti plans 6 new launches in the next 12-24 months
The Indian auto industry has been facing a slowdown since the last three years and has been showing signs of recovery with a new government at the centre and customer sentiment improving. India`s biggest carmaker Maruti is planning an onslaught on the Indian market and plans to launch six cars in the next 12-24 months. Maruti Suzuki India (MSIL) has been the forerunner in the volumes segment and is known for bringing in small cars which have been blockbusters right from the Maruti 800 which was launched in 1993 to the current generation Alto 800. Maruti`s volumes come from the small car and the compact sedan segment. But now Maruti wants to change its strategy and bring in products at a slightly higher price point and cater to the upwardly mobile class.
Maruti currently holds 50% of the market share in India (FY14). The success of the Ertiga has helped Maruti attain these numbers. Maruti`s products may not look great but they strike a chord with the customers. Being the first car manufacturer of India the brand name is etched in the minds of the people. When we hear the name Maruti it reminds us of trouble free, low maintenance and value for money cars which has been the USP of Maruti Suzuki India. More than 80% of Maruti vehicles sold in FY14 costed less than Rs 6 Lakh. As per reports senior executive officer “Mayank Pareek” informed economic times that there are millions of Maruti Suzuki customers looking for an upgrade. People who have bought the swift want to upgrade to an MPV, sedan or an SUV. As per reports four of the six cars that the car maker plans to launch in the next 12-24 months will be in the price range of 6 Lakh to 14 Lakh.
The four models include the Suzuki S cross crossover to take on the likes of Renault Duster and Nissan Terrano, Ciaz sedan which will directly compete with segment leaders like Honda City and Hyundai Verna, XA-Alpha a compact SUV and a premium hatchback YRA which will compete with the Hyundai i20. Maruti expects to generate additional sales of 1 lakh from these four new models. Earlier Maruti had launched the SX4, Kizashi and Grand Vitara SUV in the 8 lakh to 25 lakh price bracket but these products failed to generate decent volumes. While the styling of the SX4 was not appreciated the Kizashi and grand Vitara were priced very steeply. With the new launches Maruti will provide their existing core customers an upgrade option. The price point of the models is also going to be slightly higher than the existing products. We can expect these products to be priced competitively owing to the localization advantage that Maruti has.
Upcoming products gallery
XA- Alpha ( 6 – 9 lakh)
Ciaz Sedan ( 7 to 11 lakh)
S Cross (8 – 12 Lakh)