Maruti Suzuki to launch new sub-segment cars to protect market share
Maruti Suzuki India has revealed that in order to protect their market share in the auto industry, they will launch new sub-segment cars. These new Maruti Suzuki cars will be based on their segment leading cars like Alto 800, Swift and Ertiga.
Mayank Pareek, COO, Marketing and Sales, Maruti Suzuki India has revealed that the largest passenger car manufacturer in India aims to keep their 45% market share in the Indian auto industry, intact. In order to do so, MSIL have lined up new car launches in the sub-segment of their existing cars over the next few years.
Speaking on their recent increase in market share, Mr Pareek tells ET, that there are many factors for them registering an increase in their market share in the Indian auto industry by 2.4% during the fiscal that ended on 31st March 2013, compared to the one that ended on 31st March 2012. The main reason, he says, is the recently launched Maruti Suzuki Ertiga. Their new MPV has been an instantaneous hot seller with the company registering record sales.
The other reason, is the decline in market share from rivals. Top passenger car manufacturers like Tata Motors, General Motors India, Ford India and VW India, all four registered decline in market share for the Financial Year 2013. Apart from this, analysts reveal that MSIL’s market share would have increased by a further 1% had it not been for the worker strikes at their Manesar Plant, which had an adverse effect on production for over three months.
But it will not be easy for Maruti to hold their marketshare. There is no doubt that Maruti is leading due to their range of small cars and a large network of service stations. But, rivals are catching up. They have revealed plans on launching new small cars and also to invest in expanding their service network. Honda has announced to launch a new small car, so has Renault, and we all know about Tata Nano diesel and 800 cc petrol variants.
The other reason, that will make Maruti’s task difficult is the fact that the number of people getting tired of seeing Maruti cars on Indian roads, is on the rise. Gone are the days when seeing a Maruti Suzuki would make one desire for the same. For many today, its exactly opposite.