Maruti to introduce two products in the sub 5 lakh segment
The market in India is shifting. It was known primarily as a hatchback market but now compact SUVs are also becoming equally popular. The 5-10 lakh segment is also getting popular now. Carmakers such as Hyundai and Tata that are one of the biggest companies in the four-wheeler market do not have many products in the sub-five lakh segment. Instead, they are straying away from it due to added costs with the new emission and safety norms that increase the cost of production of cars. Although Maruti Suzuki has other ideas.
Overview
Maruti has decided to develop two new car models that will be priced below the five lakh segment. This will help Maruti to establish dominance in this segment as other companies are not expanding their line ups in this segment. These models are expected to get 800cc as well as 1.0 litre engine.
From Maruti
Managing director Kenichi Ayukawa confirmed that the company was working on an 800cc car among multiple models, but didn’t talk specifically about the second car. The challenge in developing a small car is keeping the cost low, he said. “We have to comply with new regulations on safety and emission which spike the cost by 10% on entry-level and makes it challenging. We have to still find a solution on the same.”
Maruti and the market
Maruti has been known to dominate segments with many of its cars such as the Swift, the Alto and the Brezza. The rural market in the country is increasing by the day and the demand there is of affordable cars with the most mileage. Therefore Maruti has been successful in meeting the demands of the majority of the consumers in India and has become the biggest manufacturer for four-wheelers in the country. The car market has not been doing well for quite some time. Maruti being the biggest manufacturer has obviously taken a hit. It is expecting that these cars will bring in the volumes back to the company that it once received from the country.
Launches
The first car to be launched will be the car getting the 1.0 litre engine and is expected to be more premium than the second car. This car will be launched by the end of this year itself. It will also replace the Celerio. The Celerio is available in 1.0 litre and 1.2 litre form. The second car will get an 800cc engine but that will be launched by the end of next year. This could replace the Alto or could also be slated in between the S Presso and the Alto.
Competition
It wants to ensure that it retains over 50% of the market share and these products should keep that possible. The competition currently are the Renault Kwid and the Datsun Redi Go.
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