In a bid to regain its stronghold in the Indian car market(50%rough) Maruti Suzuki is introducing new variants of Wagon R, Swift and Alto. The move is to counter the turbulent entry of world leaders -like Toyota, Honda and VW- into the small car market. Maruti’s strategy raises many eye brows- the industry has so far seen new variants in the increased price only. But the company CEO said that the company may like to thwart any slackening in the hard earned volume over the years.
Alto(at Rs3lakh) will represent the company’s counterpart for Nano, since M800 will be withdrawn in 11 cities following the implementation of Bharat IV norms from April 1. The redefined version of Zen to cost lesser by Rs50000 than the present model. Eeco muv would cost Rs2.59 lakh lesser than Versa by Rs1lakh. Swift (petrol), with 1.2lit KB series engine, might cost lesser than the current version by Rs30000-350000. This despite 8%excise duty imposed on vehicles with 1.2lit engine and under 4-m long.
Maruti adopts to the international standard of revitalizing the version once in 3 years. The change is in both the design and the engines to meet the emission norms. The restructuring of the versions is jointly carried out by the R&D and the component suppliers. The entry of Nano paved the momentum in Maruti circle to offer cars at competitive price ranges.
Maruti accounts 60% of net sales from the compact car segment- Swift, Alto and Wagon R- and this segment needs special care from the company. The entry level M800 will be marked for rural and small cities. Close on the heels of Maruti, other players Hyundai, Ford, Fiat, Honda Siel are also in the process of redefining the versions on cost. This, they like to work out on localized components and the entire design process.
Honda is making 2CV for 2012 at Rs5lakh by getting raw material locally aided by an R&D centre, said its VP. (currently Tata Steel supplies necessary material). Fiat is to offer Punto in the CNG version at Indian prices (current price Rs4 lakhs). Other variants that are likely to hit the roads – Hyundai Santro, Ford Figo- to meet the competition from Fiat Punto, Chevrolet UV-A and Skoda Fabia.
India promises to be the second largest market, after China, for the global car makers. This market has become a solace for them to relieve from the recession. India accounted a sale of 1.6 million small cars in 2009 comprising 25% of the net market. the need of the hour is the ecofriendly small cars at reasonable price.