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


Reply
 
Thread Tools Search this Thread
Old 16th January 2017, 16:18   #46
Senior - BHPian
 
romeomidhun's Avatar
 
Join Date: Nov 2007
Location: Chennai
Posts: 2,545
Thanked: 1,718 Times
Infractions: 0/2 (9)
Default Re: Has Maruti-Suzuki reached a peak in terms of market share?

Quote:
Originally Posted by Rahul Rao View Post
Hyundai is reducing its exports to cater to fluctuation in local demand.
They were the largest exporters of automobiles from India in 2015, but are second to Ford in 2016. The third and fourth exporters VW and MSIL are also not far behind.
One reason Hyundai reduced the exports is their inability to meet the European safety standards. I remember Australia didn't launch the i20 Elite and continued with the old i20 because the new one was not upto the safety safety standards.
romeomidhun is offline   Reply With Quote
Old 16th January 2017, 16:38   #47
BHPian
 
deerhunter's Avatar
 
Join Date: Dec 2016
Location: PGT/PDY
Posts: 264
Thanked: 578 Times
Default Re: Has Maruti-Suzuki reached a peak in terms of market share?

Quote:
Originally Posted by Rahul Rao View Post
Hyundai is reducing its exports to cater to fluctuation in local demand.
They were the largest exporters of automobiles from India in 2015, but are second to Ford in 2016. The third and fourth exporters VW and MSIL are also not far behind.
Hyundai was the top exporter for 2016. Ford overtook Hyundai only for the month of December. Link

Hyundai sure is reducing exports and diverting production capacity to meet local demand.

Quote:
Originally Posted by romeomidhun View Post
One reason Hyundai reduced the exports is their inability to meet the European safety standards. I remember Australia didn't launch the i20 Elite and continued with the old i20 because the new one was not upto the safety safety standards.
Hyundai could have sourced i20s from Europe. But I heard Australian taxes are high, that maybe the reason.

Bharat NCAP will start in a year. So Hyundai will have to make cars with NCAP standards anyway, even though NCAP standards are not mandatory.
deerhunter is offline   Reply With Quote
Old 16th January 2017, 17:04   #48
BHPian
 
SPARKled's Avatar
 
Join Date: Aug 2009
Location: Navi Mumbai
Posts: 915
Thanked: 283 Times
Default Re: Has Maruti-Suzuki reached a peak in terms of market share?

Quote:
Originally Posted by blackwasp View Post
I think the main reason of superb success and high market share of Maruti is not due to cheap/ fuel efficient cars / variety of cars etc, but rather the very strong sense of customer satisfaction. I've been working in a Maruti dealership for almost a year now and have seen and observed many things which many people won't know.

The way the complaint escalation matrix works is phenomenal. All dealerships are strictly told to keep complaints at the dealership level at max. The moment a customer calls up Maruti or says something negative about the sales/service experience during feedback, immediate action is taken - either warnings given or steep monetary fines for all people in the chain - Sales executive -> Team Leader -> Sales manager -> VP/GM etc and so on. This includes false commitment of delivery, compulsory accessories etc .

Even today, when ever we ( auto enthusiasts ) discuss cars, we may say that Maruti makes flimsy cars ( for example ), or is using fiat engines or not giving us a powerful engined car, etc but I've rarely anyone discuss bad experiences of a Maruti car. From a humble Maruti 800 owner to a Kizashi owner, all of them are provided same service. And it's this why Maruti is here to stay.
I think this is the crux of it all and you have summed it up beautifully. But IMHO Maruti is now too big for its own dealers to really look after every one of its customers in a satisfactory manner. Agreed that the dealers are scared of Maruti and and all escalations are taken up swiftly and dealt with the best of their abilities, but there are things like crowded service centers, sub standard servicing, extremely high service charges, fleecing customers with unnecessary work during routine service, scare tactics to get cars to service out of prescribed service intervals etc.. This is not what I am only reading and quoting from things I have read on the web but something that I have experienced myself. With more and more cars and the same capacity service centers now looking after the increased crowd including Nexa (in a majority of cases and from what i have seen where i live), this will surely implode someday soon is what I think, unless capacity to service cars satisfactorily from the service centers also increases
.
SPARKled is offline   (1) Thanks Reply With Quote
Old 17th January 2017, 11:26   #49
BHPian
 
Join Date: Dec 2007
Location: chennai
Posts: 71
Thanked: 41 Times
Default Re: Has Maruti-Suzuki reached a peak in terms of market share?

Quote:
Originally Posted by deerhunter View Post
Hyundai could have sourced i20s from Europe. But I heard Australian taxes are high, that maybe the reason.

Bharat NCAP will start in a year. So Hyundai will have to make cars with NCAP standards anyway, even though NCAP standards are not mandatory.
They didn't source the car from India as the Indian car's body structure and safety features were not expected to give them the full score in the crash test, the same reason the Creta and i10 are also not shipped Australia.

The Indian i20 is now available with side and curtain bags, but Australia is not interested. I don't think the Bharat NCAP would assist the i20 to resume exports as the BNCAP and ANCAP scores cannot be equated, Hyundai Australia has started using the old Accent hatchback to replace the i20.

The only reason that Hyundai doesn't source from the Turkish plant is due to the lack of a FTA, logistics cost and exchange rate fluctuation.

Until HMIL's plant gets the contract for a Euro-spec model's production (like the previous gen i10 and i20), there is no chance for exports to Australia or developed markets.
notjustshrawan is offline   (1) Thanks Reply With Quote
Old 17th January 2017, 12:45   #50
BHPian
 
Join Date: Nov 2009
Location: JVPD , Mumbai
Posts: 274
Thanked: 222 Times
Default Re: Has Maruti-Suzuki reached a peak in terms of market share?

If i have to put my bets, i would say that not only will MUL maintain its market share, it would even improve its profitability as people buy more expensive cars. Profits per Swift are more than profits per Alto. Profits per Breeza are more than profits per swift.

The reason for this is the companies ability to adapt and focus. Do note that while all other manufacturers are having presence and sales in all big countires, Maruti is predominantly and Indian Company that sells and makes money over here. It has insignificant presense elsewhere unlike Hyundai, GM, VAG, Honda and Toyota. It does not have to bother about what happens elsewhere or if there is any other place that can offset if they dont do well here.

Its this focus alone that will keep it above the competition. One example is that only MUL was able to get SHVS based machines and enjoy a lower tax bracket. I do not want to go into if they deserved it or not. But fact remains that it happend and they had this advantage.

This equation will change when there will be a remarkable shift from the internal combustion engines we use to a predominantly electric only vehicles. I am not talking Hybrids. I am talking a scenario where petrol and diesel engines will be rare. This may take upto a decade or more here. Till then MUL will remain the King and Leader by a wide margin that exists right now.
manishkapadia is offline   Reply With Quote
Old 2nd February 2017, 16:21   #51
Senior - BHPian
 
ashis89's Avatar
 
Join Date: Aug 2011
Location: Hyderabad
Posts: 1,138
Thanked: 741 Times
Default Re: Has Maruti-Suzuki reached a peak in terms of market share?

I don't know if this is the right thread to discuss my point.

I got a call from Maruti Suzuki(MS) central call centre. They had my name correctly registered but the car model/regn details were wrong. The lady on the phone was reading out a brochure of Brezza and wanted to know if I was interested in trading in my existing car for the Brezza. Without me asking, she offered that if I get a "good" price for the existing car and some "good discount deals" for the Brezza, will I book it. She then took the details of my nearest MS dealer, verified my email id and told that the dealer will get in touch with me ASAP. She also wanted to know if I want to refer friends/family who are in market to buy a new car.

Here comes my doubts. Isn't Brezza one of the top selling models for MS? Isn't it having long waiting periods and MS is not able to meet demands? If so, why do they sell it at a discount and give good buybacks to entice a customer? Is it one of the reasons of their success today? My doubt is reinforced when I see ads in newspapers regularly about ongoing discounts for MS cars. Discounts and offers ranging from 25k - 65k on popular models like Swift, Alto and WagonR seem surprising. Is that how they are achieving the volumes and market share?
Pricing strategy to sell the car at a price when new and dole out discounts slowly as it gets old, to ensure volumes. If such a strategy is being used, isn't Brezza too new to be sold at a discount?
Any insights or thoughts are welcome.

PS: I never discussed the amount of discounts or the buyback price of my car. I am assuming they will give some good offers.
ashis89 is offline   (1) Thanks Reply With Quote
Old 2nd February 2017, 19:54   #52
Senior - BHPian
 
shankar.balan's Avatar
 
Join Date: Apr 2008
Location: BLR
Posts: 8,053
Thanked: 5,304 Times
Default

Maruti has the amazingly intuitive ability to offer vehicles which are absolutely perfect for middle class India.
Thats one of the main reasons they are so relevant even after 30 odd years!
I think their 'peak' is still a long way off given the phenomenal growth in numbers, of the Great Indian Consumer!
As long as more and more new consumers enter the market, Maruti will grow.
shankar.balan is offline   Reply With Quote
Old 6th February 2017, 09:17   #53
Senior - BHPian
 
Join Date: Dec 2010
Location: --
Posts: 9,430
Thanked: 14,124 Times
Default Re: Has Maruti-Suzuki reached a peak in terms of market share?

Maruti Suzuki accounted for one in every two passenger vehicles sold in India in January, achieving the feat for the second time this fiscal year as the automaker further consolidates its position at the top of the local market.

Races ahead of its peers and with a strong known portfolio coming this year will look to consolidate its stand

All eyes on today's announcement on the Suzuki - Toyoto partnership could set directions for the future both in India and globally.

Name:  56992566.png
Views: 264
Size:  54.9 KB

Analysts's views
Quote:
The company has always got right its product positioning and pricing. They have a phenomenal brand appeal. There is nobody who can beat them in the near future
Name:  56992565.png
Views: 270
Size:  58.6 KB


Link

Last edited by volkman10 : 6th February 2017 at 09:19.
volkman10 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Maruti set to close the 2015-16 financial year with 47% market share! It's highest in 14 years Rajeevraj The Indian Car Scene 11 22nd March 2016 12:22
Competition, Strikes Hitting Maruti Suzuki's Market Share KPS The Indian Car Scene 19 1st December 2011 20:56
Jaguar XF Facelift has reached the Mumbai dealer; to be launched in December 2011 Scorcher The Indian Car Scene 14 20th November 2011 19:05
Chitrakoot: hidden fountains, a wildlife sanctuary reached by Kanpur or Allahabad. whymeonly Route / Travel Queries 1 28th December 2007 00:23
Suzuki to break Pikes Peak record-Monster Tajima pawan The International Automotive Scene 7 20th July 2007 22:07


All times are GMT +5.5. The time now is 04:55.

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