Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 23rd July 2015, 11:13   #1
Senior - BHPian
 
Tushar's Avatar
 
Join Date: Oct 2014
Location: Mumbai
Posts: 1,138
Thanked: 8,355 Times
Default A record: Maruti's market value is greater than parent Suzuki's!

Maruti Suzuki currently enjoys the strongest position in the Indian car market. Month after month, year after year, Maruti has held on to the lion's share of the country's passenger car sales. To put it into perspective, in June 2015; 5 out of the top 10 selling cars in India came from Maruti's stable. In fact, the Maruti Dzire alone sells more than the entire model range of a few manufacturers in India. Now, reports say that Maruti's market value has surpassed that of its parent company Suzuki! An achievement that can be claimed by no other Indian organization with a foreign parent brand.

According to a report by ET Auto, Maruti's stock surged 65% in the past year, and while Suzuki is valued at $19 billion, Maruti itself is valued at $19.73 billion (Rs 1.26 lakh crore approx). While rising sales have made Maruti expand its range in India, Suzuki has been facing dwindling sales in all major markets with the exception of Asia.

Suzuki holds a 56% stake in Maruti and around 40% of its sales volume comes from India. In a vision 2020 document, the Japanese automaker said it expected the proportion of cars sold in India to reach 60% by 2020! Suzuki is also bolstering its investment in India to improve its reach in markets like Africa and Latin America. Maruti has been given a free hand to develop the business in Africa and Latin America by using Suzuki's existing dealer network.

Maruti has been known as manufacturer that caters to budget centric buyers, and Suzuki also developed a diesel engine specifically to cater to that market. The engine is question has already been used on the Celerio and will make its way to the Y9T LCV as well. At the same time, the brand has been gradually expanding its premium car range as well. After multiple flops in the C-segment, Maruti has seen a good response for the Ciaz. In order to give the brand a more premium standing, Maruti is also introducing the NEXA range of showrooms for higher priced models like the Ciaz and soon to be launched S-Cross.

A record: Maruti's market value is greater than parent Suzuki's!-1.jpg

A record: Maruti's market value is greater than parent Suzuki's!-2.jpg

A record: Maruti's market value is greater than parent Suzuki's!-3.jpg

Last edited by Tushar : 23rd July 2015 at 11:15.
Tushar is offline   (9) Thanks Reply With Quote
Old 23rd July 2015, 11:26   #2
BHPian
 
jvk84's Avatar
 
Join Date: Jun 2009
Location: Tiruvalla
Posts: 73
Thanked: 57 Times
Default Re: A record: Maruti's market value is greater than parent Suzuki's!

I always wondered this: Even though India is the largest market for Suzuki, and the largest part of its profit pie comes from India, why do they introduce the models in other countries first and then in India?

For example, the S-Cross has been sold in Europe since 2013. And the Ciaz was introduced in china as Alivio before it was introduced here. (Compared to India, Suzuki's share in China is minuscule )

Also, some of the vehicles in other countries are not introduced in India at all. (Ex: the 7 seater WagorR in Japan)
jvk84 is offline   (3) Thanks Reply With Quote
Old 23rd July 2015, 12:30   #3
BHPian
 
Join Date: May 2013
Location: shimla
Posts: 246
Thanked: 260 Times
Default Re: A record: Maruti's market value is greater than parent Suzuki's!

I believe Suzuki has always given step-motherly treatment to India. Launches in India are delayed, the cars sold in India fail in safety tests while their European siblings don't.
bullrun87 is offline   (1) Thanks Reply With Quote
Old 23rd July 2015, 12:38   #4
Distinguished - BHPian
 
swiftnfurious's Avatar
 
Join Date: Sep 2009
Location: Chennai
Posts: 6,447
Thanked: 6,422 Times
Default Re: A record: Maruti's market value is greater than parent Suzuki's!

The reason could be that they want to develop a high quality product for rest of the world & then tone it down for India. The better approach is always top down & not the other way round. And then they have the issue with the perception of vehicle cost & relevance to the market. From a business perspective, guess it makes more sense.

Hyundai does not carry the perception baggage & people are ready to pay premium (comparatively) as that is a brand which is not associated with "budget" word.
swiftnfurious is offline   (1) Thanks Reply With Quote
Old 23rd July 2015, 16:05   #5
Senior - BHPian
 
vinit.merchant's Avatar
 
Join Date: Jan 2008
Location: Pune
Posts: 1,128
Thanked: 934 Times
Default Re: A record: Maruti's market value is greater than parent Suzuki's!

Quote:
Originally Posted by bullrun87 View Post
the cars sold in India fail in safety tests while their European siblings don't.
That is because this is exactly what the Indian market wants from cars they purchase

Quote:
Originally Posted by bullrun87 View Post
I believe Suzuki has always given step-motherly treatment to India. Launches in India are delayed,
That is because it takes time to cut down on the structural strength of the car to reduce its weight and increase the FE, bring it below 4 meter and plonk the 1.2 Liter engine to it.
vinit.merchant is offline   (2) Thanks Reply With Quote
Old 24th July 2015, 10:39   #6
BHPian
 
Join Date: Nov 2014
Location: Bengaluru
Posts: 83
Thanked: 76 Times
Default Re: A record: Maruti's market value is greater than parent Suzuki's!

Suzuki is surviving only because of Maruti in India. In all the major markets, Suzuki is on a decline. Taking this into account, Suzuki should provide more value for their cars in India rather than other countries as it gets most of its profits from India. The most important thing for Suzuki in India is to improve its build quality & focus on safety which is dismal by international standards. Simple running around with a "Good Mileage & Good Service" tag is not enough. Otherwise we have to teach Suzuki a lesson just as the Americans have taught them.
CarNerd is offline   (1) Thanks Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Car got waterlogged, repairs estimate greater than resale value, what to do? floyd Street Experiences 25 28th December 2009 12:22
Maruti Suzuki robust earnings helps parent company shore its business wildon The Indian Car Scene 2 26th May 2009 17:47
MARUTI ALTO SETS NEW RECORD... Breaks 800's record set in 2003... CrAzY dRiVeR The Indian Car Scene 4 7th December 2006 04:53
Honda India, Parent Company Website? buzzin_hornets Shifting gears 6 27th April 2006 12:22


All times are GMT +5.5. The time now is 10:44.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks