If I was Maruti, I would be really worried. Suzuki has no really exciting models in the current or near future range that would be of any relevance to India. Manufacturers like Hyundai have taken technological leaps ahead of Suzuki by consistently producing small cars that are lightyears ahead of the Marutis, and others like Toyota and GM have numerous small cars, diesel engines and various other technologically superior products worldwide...products that could be adapted to Indian conditions easily.
Worse still for Maruti, its the first time that these manufacturers have confirmed their long-term commitment to India.
The Maruti 800 is not going to last too long, as it is unlikely to pass any of the modern safety tests that may be imposed in the next 3 - 5 years. The Omni, Zen, Esteem, Baleno and Gypsy are frustatingly outdated...with some of these designs dating back to almost 20 years. The two main reasons why Maruti is still a giant are:
1. Pricing.
2. Extensive service network.
3. Customer service (surprise surprise...beats everyone from Honda and Toyota to Hyundau in the JD quality survey.)
Maruti knows that to compete over the long term, it is going to have to develop a stronghold over an area it hasnt ventured in before. Result? A diesel engine plant....after years of being part of the anti-diesel lobby!!
The good news is that it is in talks with none other than Peugeot, of the worlds best and most brilliant diesel engines fame. Plans are to start a fully fledged diesel engine manufacturing unit, which will not only provide small diesel engines for its entire range...but also cater to the needs of other Indian manufacturers as well.
Read the
original article for full details on this project.
GTO