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Old 30th August 2012, 15:04   #16
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

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Originally Posted by swiftnfurious View Post
18L OTR? I thought it was somewhere around 14L ex showroom. Now I check the prices in the website and see what I found! When did it get into Fortuner territory?

Maruti knows the Indian market better than the rest! So if they are spending moolah on local production capacity, we can be rest assured a diesel option. With the license of 1.6MJD secured from Fiat, I hope to see it coming in Vitara and probably next gen SX4 as well!
I was thinking it was somewhere around 16~18 lac ex showroom after price cut once they had got the new Vitara last year. However 23+ terrain for a petrol only model makes you thinking what were they thinking. I guess this is only where Maruti went wrong, pricing of their top end products.
I guess all their high end vehicles were overpriced and that was one major reason for their failure. Yes, brand image would also have played a role, however these are sub 18 / 20 lac market and I dont think brand image would have killed a product as such. Value for money products would find ready takers I feel. XUV (though couple of lakhs less) is an example.
Its not just in higher priced vehicle, Versa was a dud due to Marutis similar pricing. They corrected the price later but damage was already done. They come up with new name and stripped down model and its a hit (Sells ~3- 4 k per month compared to versa's few hundreds IIRC)

However as Swiftnfurious mentioned, they gauge the market better than some other makers, however that is limited to sub 10 lac range. Ertiga is a perfect example how a well rounded and rightly priced product can fly off shelf.

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Originally Posted by Jignesh View Post
That is true to some extent. People may not like to go for a Rs. 20 lacs + Maruti Suzuki car. But Hyundai is somehow not facing is image problem. We have Hyundai Eon till Hyundai Verna, Sonata & Santa Fe.
Exactly my thought. Guess its more to do with product and pricing than brand.
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Old 30th August 2012, 15:33   #17
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

Its a pity that Suzuki has not been able to enter D segment + effectively. They seem to pull back the efforts after starting aggresievely.

I found this pattern in all their C+segment launches from the Vitara XL , the New Vitara and Kizashi.

To gain the customer confidence they have to put 60% of marketing efforts of the first 3 years in the first year to get noticed if product positioning is new.

Suzuki India always seems to watch their marketing spending with respect to product acceptence / success in c+segments. This cannot be done when you are launching a new product in a new segment. Like how Hyundai Sonata did the brown bag test in US , they need to do something radical to lure customers.

Need to create acceptance level for Suzuki brand in D Segment should be the priority. Diesel option would be a nice and safe start to see around 300 units a month. 1.9 Multijet may do the trick.

Lexus in its inital days of Branding must have done significant amount of customer confidence winning marketing initiatives to win the brand over Acura / Infiniti which are its Japanese conunterparts.

Dihatsu and Suzuki being the leaders in Small cars in Japan has failed to emulate its success in other developed countries where space is a constraint.

Suzuki's focus on D segment in India always generates a blurred picture. Probably they are not pointing the lens at right point while focusing.

Off topic :
Global-automotive-executive-survey-2012 - by KPMG
http://www.kpmg.com/GE/en/IssuesAndI...urvey-2012.pdf

Last edited by maxbhp : 30th August 2012 at 15:36.
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Old 30th August 2012, 16:43   #18
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

SX4 & Grand Vitara are already sold in India & haven't had stellar success because of unavailability of diesel engines, & same was the case with much capable Kizashi. However, without competent diesel engines, I do not think they can succeed in the long run.

The 1.3 MJD is good for small & light cars, but, for bigger & heavier cars, it has found few takers, whether for cars from MS, Fiat or Tata (here's another interesting article on the same - http://www.zigwheels.com/news-featur...-study/13456/1).

IMO, they need bigger diesel engines for bigger cars viz - SX4, Grand Vitara & the upcoming XA Alpha, rather than flogging the 1.3 MJD in all cars, &/or petrol only models.

Last edited by CARDEEP : 30th August 2012 at 16:44.
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Old 30th August 2012, 17:38   #19
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

Maruti's profit margins are wafer-thin on the small cars they predominantly sell. Depending on which quarter's report you are looking at, the net margin is a mere 14 - 25K per car. The focus on bigger cars is for this reason alone : Profits Related Thread (Marutiís quarterly profits down; merely 14,000 Rupees per car!)

Of course, there is a marketing reason too. Someone who has stuck within the Maruti family (Alto -> Swift -> SX4) has no worthy Maruti option to upgrade to.

Quote:
Originally Posted by amolathalye View Post
If they really want to have a share then they must try to take the mighty "Bolero" head on
So true. If there is anyone which can take the fight to the mighty Bolero, it's definitely a diesel Maruti UV. The Ertiga caters more to the private owner than commercial. A rugged diesel people carrier for 5 - 8 lakhs from Maruti will have other UVs licked.

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Originally Posted by sgiitk View Post
Unfortunately, they have a basic handicap as they try to go to bigger (and with more margins) cars. The image as a low cost purveyor of cars will stand in the way.
With the XUV500, the market has proven that it will overlook brand for a thoroughly competent product. At 15 lakhs, the XUV isn't cheap and the Mahindra brand isn't exactly premium.

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I think Grand Vitara if priced competitively with XUV can succeed.
With a diesel, yes. The current petrol isn't going anywhere, whatever the price.
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Old 30th August 2012, 18:03   #20
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

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Originally Posted by CARDEEP View Post
IMO, they need bigger diesel engines for bigger cars viz - SX4, Grand Vitara & the upcoming XA Alpha, rather than flogging the 1.3 MJD in all cars, &/or petrol only models.
Hello Cardeep,

As suggested by Swiftnfurious on previous page, Maruti Suzuki is now going to procure 1.6 MJD Engines from Fiat. Probably this 1.6 Diesel Engine may be used on these proposed future launches.

Also I believe Suzuki Powertrain may be doing some Research & Developmental activities to come up with Maruti Suzuki's in-house built engine for future Cars.

Thanks,
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Old 30th August 2012, 18:27   #21
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

Quote:
Originally Posted by Jignesh View Post
Hello Cardeep,

As suggested by Swiftnfurious on previous page, Maruti Suzuki is now going to procure 1.6 MJD Engines from Fiat. Probably this 1.6 Diesel Engine may be used on these proposed future launches.

Also I believe Suzuki Powertrain may be doing some Research & Developmental activities to come up with Maruti Suzuki's in-house built engine for future Cars.

Thanks,
I read that, but do you think 1.6L diesel will be sufficient for something like the Kizashi, XA Alpha & Grand Vitara. The 128bhp 1.6L diesel is insufficient (modest at best) for the Elantra... how could I be assured that similar sized engine would make a star performer for these 3 cars? I believe they should secure the rights to 1.9L diesel for India as well.
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Old 30th August 2012, 18:47   #22
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

I think before getting into that territory, they need to secure a deal on 1.6 MJD with Fiat.
I had read about that. But some how never seen any follow-up news or developments.

http://www.team-bhp.com/forum/indian...-per-year.html (Maruti seals deal with Fiat to source 100,000 diesel engines per year)
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Old 30th August 2012, 19:12   #23
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

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Originally Posted by sgiitk View Post
Suzuki globally is a very small (almost insignificant) player in the car industry. Even in Japan they are basically in the sub hatch area. In India they (or rather MS) have built up a brand image, so they are desperately trying to counter the global recession by somehow building market share here.
Not necessarily.
Chevrolet was/is not percieved as a premium car manufacturer. But that did not stop Cruze from selling.

The thing is, if you have a VFM diesel, it will sell no matter what. Get the looks and the deal is sealed.


Quote:
Originally Posted by ampere View Post
I think before getting into that territory, they need to secure a deal on 1.6 MJD with Fiat.
Thats right. But Fiat has not brought the 1.6L MJD. It is long overdue. I would not keep high hopes.
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Old 22nd October 2012, 08:54   #24
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

Suzuki reveals new expansion strategy for the crossover segment!

Here is Suzuki Crossover road map in 2013-2016.

1. Start in late 2013 with C-segment crossover that will also offer in 5 door hatchback version.Plans to rival mainstream European compact car such as VW Golf,Opel Astra,Ford Focus,Renault megane and Peugeot 308(Next model will call 309).The car not replacement of SX4 but will sell parallel with it.

2.The next generation B-segment crossover that reveal as XA alpha concept at 2012 Delhi auto show. Until now it is in discussion that the car will get the Jimny named or not. Because the car will get alot bigger in size than current Jimny and will be upgrade from A to B segment.Meet the production version in 2014

3.The next generation Jimny (kei car) version that will arrive in 2014 .The car will have limit size to just 3395 mm in lenth and 1475 mm wide.This car will arrive Japan in 2014.Not sure that this car will get expand in size from kei-car to A-segment and market sale in others countries.

4.The new A-segment Crossover is in develop (Confimed by Ayukawa) and could be launch around 2015-2015.
Expect it to have around 3.55-3.65 meter in lenth.Expect it to be value for money and hot seller among developing countries.This car will also planed for Europe.

5.The SX4 replacement will arrive late 2015 or early 2016.Expect it to remain current size.

6. Donít forget thenext generation Suzuki Grand vitara.The 4th generation GV was initially planed in 2011,then delay to 2013 and now theyíre
schedual for early 2015.

Cheers!

http://suzukifan.com/2012/10/21/suzu...ade/#more-2715
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Old 22nd October 2012, 09:09   #25
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

The other day I was discussing with my MASS service general manager, we both agreed that, " for a person moving out of Maruti to a Mahindra or Tata for a vehicle above 10L will be in a shock, in terms of the overall service experience".

The technical competency of the A.S.S is one of the strong points on MARUTI.

I drive a SWIFT D now and I would like to see a MARUTI SUV priced at 10 - 11L in two years from now.

Last edited by F150 : 22nd October 2012 at 09:10.
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Old 22nd October 2012, 10:26   #26
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

IMO, Maruti's future lineup in the big car segment should be as follows:

Replace current SX4 sedan with a bigger Swift sedan in the range 6L - 9L
Introduce a Diesel 7-seater UV in the Jipsy platform in the 6L - 8L range to compete with Bolero
Introduce the XA Alpha compact SUV in the 6L - 9L segment
Introduce the new S-Cross SUV in the 8L - 11L segment
Start manufacturing Kizashi in India, and price it in the 10 - 12L segment to compete with the likes of Elantra / Civic / Cruze
Start manufacturing Vitara in India, and price it in the 12 - 14L segment

And all with Diesel mills along with Petrols.

Anything beyond that, they can dream!
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Old 22nd October 2012, 11:19   #27
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

Quote:
Originally Posted by volkman10 View Post
Suzuki reveals new expansion strategy for the crossover segment!

Here is Suzuki Crossover road map in 2013-2016.

1. Start in late 2013 with C-segment crossover that will also offer in 5 door hatchback version.Plans to rival mainstream European compact car such as VW Golf,Opel Astra,Ford Focus,Renault megane and Peugeot 308(Next model will call 309).The car not replacement of SX4 but will sell parallel with it.
This is the car (Swift 4X4) that is being referred to-
Name:  220721.jpg
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Link to article on the car - http://www.carbuzz.com/news/2012/10/...tdoor-7711206/
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Old 22nd October 2012, 11:29   #28
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

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Originally Posted by CARDEEP View Post
This is the car (Swift 4X4) that is being referred to
This indeed is not the C-segment crossover, but just a Swift makeup. Afterall, Swift is in the B-segment. The C-segment car which is referred here is the new S-Cross car mentioned in the link above.
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Old 22nd October 2012, 11:41   #29
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

Quote:
Not necessarily.
Chevrolet was/is not perceived as a premium car manufacturer. But that did not stop Cruze from selling.
Yes but the image was based on the pre-1950's Chevys where they were almost the only major US car in India. Obviously there is more moolah in bigger cars, but given the past history unless MS set up another label, they will find it tough to succeed in the bigger/premium segment.
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Old 22nd October 2012, 15:01   #30
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Default Re: Maruti Suzuki to Increase Focus on Bigger Cars

My 2 cents -
It's not going to be easy to position Maruti Suzuki as a premium car manufacturer, but then why do they need it. They need to take one step at a time to ensure they are going up in value chain for customers who want to upgrade from Swift/SX4. Their target for next couple of year should be to broaden their range so that they are a player in 8-13 lakh range as well. and then move ahead with a product in 13-18 Lakh range (Kizashi and GV fits in here) couple of years later.

So if they launch a proper sedan and a proper entry level SUV which is more value for money then competitors, people will lap it up. Figo and XUV 500 has shown that a (perceived to be) good product at (perceived to be) good value for money will do well.

Also they need to rationalize their product lineup - time is ripe to remove old Alto, Omni and Estilo from the line up and replace Gypsy and SX4 with new models. They have to think about either enhancing A-star or downgrading it to fill the gap between Alto K10 and Wagon R.
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