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Old 21st March 2012, 20:24   #61
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Default Re: Absolute Domination by Maruti

I saw this comment more than once about the choice of "rich" people.

I agree with you and I dont refute that argument. But tell me something, even if you take this forum as a sample, how many "rich" people are here? I would say not more than 10% at the most. I'm certainly not one of them.

For the rest of 90% of the not-so-rich crowd, maruti offers value, peace of mind, reliability and more importantly value for the hard earned money of the average middle class. Extrapolate this to the market and you will get the picture.

Maruti addresses the need for 90% of the crowd out there and that's their business strategy, what's wrong with that? No offense meant to you personally, I just wanted to share my thoughts on this.

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Originally Posted by civic-sense View Post

It's not about what I think. It's about what the market thinks. There is nothing richer in the cars, but there is, in the brand name.

Last edited by bala80 : 21st March 2012 at 20:27.
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Old 21st March 2012, 20:36   #62
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Default Re: Absolute Domination by Maruti

From reading posts in this thread, I make one observation-
People with low budget don't research well about companies other than Maruti and hence lose out on having possibly better car (for eg, Figo over Swift). And, people with high budget don't research well about Maruti and hence lose out on having possibly better car (for eg, Grand Vitara over Fortuner).
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Old 21st March 2012, 21:06   #63
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Default Re: Absolute Domination by Maruti

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Originally Posted by bala80 View Post
I saw this comment more than once about the choice of "rich" people.
.
Some clarifications:

When I mentioned "rich", in one of my posts, I also added "according to Indian standards".

Not by any means do I intend to show maruti in poor light. All I was trying to say was that a huge part of marutis success in India is due to its first mover advantage. And once maruti established themselves as a vfm brand, the rich ones are not very comfortable being seen associated with that brand.

By no means do i intend to imply that choices of the rich are better than the ones made by the poor. Poor tend to play safe but. Hence they tend to be partial towards maruti.

Last edited by civic-sense : 21st March 2012 at 21:34.
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Old 21st March 2012, 22:06   #64
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Default Re: Absolute Domination by Maruti

Quote:
Originally Posted by DevilsCry View Post
From reading posts in this thread, I make one observation-
People with low budget don't research well about companies other than Maruti and hence lose out on having possibly better car (for eg, Figo over Swift). And, people with high budget don't research well about Maruti and hence lose out on having possibly better car (for eg, Grand Vitara over Fortuner).
Dont quite agree to this. My budget was around 5-5.25 lacs and I booked a Brio over Figo petrol. When I decided to put in another lac., I didnot opt for Figo Diesel - due to various reasons - but opted for Dzire. The decision to go for dzire was after considerable research and feedback from owners of various cars within that cost.
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Old 21st March 2012, 22:43   #65
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Default Re: Absolute Domination by Maruti

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Originally Posted by StarrySky View Post
So a cheap Toyota still attracts some buyers who think, "Now I too can buy a Toyota". .
But this has failed to happen in India. Dzire and Swift are leagues ahead of Etios and Liva, in sales and also in overall quality. Today Toyota is just an Innova maker.

Maruti makes no-frills, basic cars which give you maximum bang for your bucks and therein lies its success. And while at it, Maruti cars are superbly relaible, which cannot be said about some premium upper-segment cars which cost 5/6 times as much.

Also, Hyundai seems to have lost the pace it once enjoyed with santro in India. Sure, i10 is selling but the Eon, surprisingly, has very few takers. Which is surprising indeed because it failed to make any dent in Alto's sales. On the contrary, Alto scaled new heights after launch of Eon. Maruti really has cornered the lower end of the car market which is lower in price but not in quality and reliability.
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Old 21st March 2012, 23:22   #66
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Default Re: Absolute Domination by Maruti

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Originally Posted by bala80 View Post
Maruti addresses the need for 90% of the crowd out there and that's their business strategy,
Agree with you. 90% of Indian consumer's need is a VFM product & Maruti has understood this very well and develops its products accordingly.

It is this VFM factor which makes Tata, known for those niggling issues & below par A.S.S. experience, the third largest volume player.

And yes, Maruti's first mover advantage has definitely played a vital role in understanding the Indian consumer's needs.
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Old 22nd March 2012, 01:52   #67
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Default Re: Absolute Domination by Maruti

One has to give it to Maruti’s strategy and understanding of Indian market. Imagine there was this humble 800, the world’s cheapest car, bread and butter earner for Maruti, but was fast losing sheen. Building a modern alternative to the 800 is not a mean task and the way Maruti positioned and built Alto as an alternative and made it India’s biggest selling car is just amazing. The more I think about it the more I realize most of it was by design. First they dumped the 1.1 Alto, did a lot of cost optimizations to Also’s manufacturing and supply chain ( I remember reading about several six sigma initiatives), lowered the cost, repositioned Alto , and passed on all the benefits to the customer. They did market both the 800 and the 800cc Alto together, slowly relegated 800 to the tier 2 markets (I know this was also necessitated by emission guidelines) and slowly & steadily built Alto into what it is today. Has any other manufacturer been able to successfully reposition a car like Maruti has done with the Alto, no.

Similarly with the Swift, despite heavyweights like Honda, Toyota & Hyundai being around, it was Maruti that built this premium hatch category. Again note that it was by design, I remember Swift was launched at an introductory price of 3.97 lacs and worked on establishing it based on market acceptance.

It is this conscious strategy by Maruti’s to proliferate the hatch segment with products at every possible price point that has helped Maruti guard its turf so very well against some intense competition. I don’t agree that it is the first mover advantage that is helping Maruti, by that logic HM and Premier should have been dominating Indian market. Agreed Maruti has been around for a longer period time that its competitors but they still have to do things to succeed.

That said, Maruti hasn’t displayed quiet the same flair in the C/D and SUV segments. Needless to say it is not an area where its parent Suzuki excels in either.

Last edited by Sanjunair5 : 22nd March 2012 at 01:53.
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Old 22nd March 2012, 03:15   #68
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Default Re: Absolute Domination by Maruti

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Originally Posted by pgsagar View Post
But this has failed to happen in India. Dzire and Swift are leagues ahead of Etios and Liva, in sales and also in overall quality. Today Toyota is just an Innova maker.
I wouldn't consider combined sales of around 9K a month to be a failure. I'm sure many of the Etios/Liva customers buy it (despite of the supposed lack of quality) simply because "It's a Toyota". Yes, it's only about a third of Swift+Dzire sales, but Etios/Liva have been around for only less than an year. And the new Swift definitely feels like a more premium product than the cheapest Toyota.
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Old 22nd March 2012, 10:55   #69
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Default Re: Absolute Domination by Maruti

May be its time to add a poll to this thread on how many consider the maruti as the top played for next 10 years.

When i say monopoly, it means overall as an automobile maker & how many indians have a smile on thier faces because of Maruti. So lets ignore the fact whether it has a presence in SUV segment etc.

MODS: Is it possible to add a Poll now?
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Old 22nd March 2012, 12:22   #70
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Default Re: Absolute Domination by Maruti

Its not just that the number of manufacturers have grown to 14, please also remember the increase in the number of cars being sold across all segments today is multifold if not exponential.
That Maruti sells 40% of this number is still a feat! The %ge hardly provides a true picture. Let us also look at absolute numbers being sold by each manufacturers.
Why does Maruti manage the feat and others don't, at least today and where will Maruti be 10yrs from now are points of debate.
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Old 22nd March 2012, 14:19   #71
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I agree partially with the thread. However I would not call absolute domination but yes Domination. What amazes me is that Maruti always comes up with a product which ticks all the boxes a common consumer wants. People say that there are good alternatives to Maruti's – well the sales figures seem to say otherwise. Maruti's service might not be perfect but it's better than competitors. I am sure people have had bad experiences with Maruti as well but on the whole they are quite good. They have started this year with the perfect strategy. Ertiga's launch will prove that further. I just hope they become successful in greater than 8 lakhs category too. Sx4 though not a dud is doing just about average. I am sure Maruti would be working in this and launch a refreshed Sx4 this year.

P.S – I own a Maruti product hence I might be a little biased towards it.
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Old 22nd March 2012, 15:25   #72
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Default Re: Absolute Domination by Maruti

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Originally Posted by StarrySky View Post
Even those who owned Marutis as their first car may not choose Maruti when it comes to premium cars - because buying a more premium brand brings more social status.
For most indians or for that matter for most humans across the world car is a mode of transport to get you from one point to another with high degree of reliability, safety and cost effectiveness and nothing else. Status symbol is only among those minority ferw who have nothing else but their car to project their status.
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Old 22nd March 2012, 15:51   #73
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Default Re: Absolute Domination by Maruti

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Originally Posted by DieselFan View Post
For most indians or for that matter for most humans across the world car is a mode of transport to get you from one point to another with high degree of reliability, safety and cost effectiveness and nothing else. Status symbol is only among those minority ferw who have nothing else but their car to project their status.
That would be the case in Utopia, but usually brand value is an important consideration in the purchase of the more expensive cars. Premium cars are also a tool to let the world know that you have "arrived" in life. The not-so-rich Indians prefer sedans over hatchbacks to lift their social status.
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Old 22nd March 2012, 18:17   #74
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Default Re: Absolute Domination by Maruti

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Originally Posted by StarrySky View Post
That would be the case in Utopia, but usually brand value is an important consideration in the purchase of the more expensive cars. Premium cars are also a tool to let the world know that you have "arrived" in life.
But over couple of years premium has changed definition. Maruti has always been a humble down-to-earth brand but then there was a time when people looked at Civic/Camry with awe and admiration. Those cars were premium then. Today even BMW/Merc are not so premium. Even small towns in AP are bursting at seams with BMWs/Audis and no one gives them a second look. We can imagine situation in metros then. Today only Brits ( Jag, Rovers, Bentley, RR, Aston Martin ) seem to hold the proper premium title. So, an Alto guy saying to a Nano guy, " hey, mine is a premium car" is like a 6 footer saying to a 5 footer that he is closer to moon.
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Old 22nd March 2012, 18:35   #75
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Default Re: Absolute Domination by Maruti

In the 1990's I owned a Maruti 800 and sold the old one after 5 yrs and bot a new 800. Both cars were excellent and never toubled me on long distance drives.

Year 2000, I turned to Santro and was delighted with this car. Way superior to even the Zen !

Year 2008 the fuel prices started to rise and swapped the Santro for a Wagon R Dio. More for the gas than for the Wagon R or Maruti brand. I still have this car and probably will drive it till she out lives her life.

Year 2010 bot a Honda City. Probably my last car this life.

When friends ask me to recommend cars I swing towards brands other than Maruti. Not that I have had any issues with their cars except that maintenance costs go up a lot after 5 years on the road. I guess was the same for Santro too.

But yes what Mr Urajkumar and others have written about brand Maruti is correct and yes they will dominate the market for years to come.

It is such a hard decision to make when buying cars is concerned given the large number of brands and models.

Last edited by nanduchitnis : 22nd March 2012 at 18:55.
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