Till 2009, every second car sold in India was from Maruti Suzuki's showroom. Will 2010 see the same pattern? In the entry level segment, with 800 being phased out in 11 cities from April 2010, Alto and Estilo had to survive Chevy Beat and much awaited Ford Figo. In the premium hatchback segment, Swift and Ritz will compete against Volkswagen Polo, Revamped Fiat Grande Punto, yet to come Toyota Etios and the Honda's concept small car along with the Indica. After this never seen before competition in the small car market, will Maruti sustain its 47% market share?
The success of Maruti was not only its pricing strategy. It had won the trust of Indian consumers through its product quality and service quality. With the largest spread of distribution network for sales and spares anything for Maruti was available anywhere. But will todays consumer be happy with this? They need the latest in the market, customised, trendy along with performance. Maruti reacted to this competition last week by announcing a reduction in its small cars from Rs 30K to Rs 50K. Also they have introduced a MUV in the price of an Alto. The customers neither wanted a price reduction nor a MUV in this segment.
Maruti has to repeat history. It should do, what it did in 1984. A revamp in its product line. New products with a premium price tag also will be well accepted. With the help of Suzuki, it should bring in more brands from the Japanese roads tweaked to Indian conditions. A mere price reduction on the existing models will not help the company sustain this market lead. Hope the Nations brand does a successful fightback in this turbulence.
The success of Maruti was not only its pricing strategy. It had won the trust of Indian consumers through its product quality and service quality. With the largest spread of distribution network for sales and spares anything for Maruti was available anywhere. But will todays consumer be happy with this? They need the latest in the market, customised, trendy along with performance. Maruti reacted to this competition last week by announcing a reduction in its small cars from Rs 30K to Rs 50K. Also they have introduced a MUV in the price of an Alto. The customers neither wanted a price reduction nor a MUV in this segment.
Maruti has to repeat history. It should do, what it did in 1984. A revamp in its product line. New products with a premium price tag also will be well accepted. With the help of Suzuki, it should bring in more brands from the Japanese roads tweaked to Indian conditions. A mere price reduction on the existing models will not help the company sustain this market lead. Hope the Nations brand does a successful fightback in this turbulence.
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