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Old 30th January 2008, 16:29   #46
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Originally Posted by supremeBaleno View Post
You might be right. But just that you also seemed to make it sound as if all these applied only to the M800.

I take care not to comment on any thread, without reading up the full background, however time-consuming it might be.

I believe you started it. From a thread which was just about a high price being charged by MUL for the M800, you took it to the safety issues direction. So, I agree, lets get back to the price.

I dont know what is so tough to believe in a car having crumple zones. We are not talking costly and hi-tech stuff like airbags or ABS here.

And BTW, the M800 does have crumple zones - since I was just a little doubtful, checked the manual online.
I seriously think Maruti could surely bring down the prices of the MAruti 800 quite long time back.
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Old 30th January 2008, 17:15   #47
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On that point I do agree with you, from a customer's POV.

Again, imagine ourselves in the place of MUL MD and think whether we would have done it ? I know that I won't because there is no real impetus for me to do it. Infact, with no competition worth the name for my car, I should be a fool to reduce prices.

But, now that Nano is going to come out and at cheaper price, I would re-evaluate my options and maybe do a price cut. IMO the guys at MUL will surely do a price cut for the M800, due to Nano-effect.
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Old 30th January 2008, 17:32   #48
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Originally Posted by trinadha View Post
maruti was initially sold for a price of 43354 INR in 1984-83
Is this the On Road price ?? Coz I rem we bought our first maruti in 1987 for around 72 K (We gave 3K extra for early delivery and Red Colour ). So On Road in Indore would have been close to 69 K.
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Old 3rd February 2008, 08:24   #49
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X makes a car 20 years ago. That too a old model that existed in some other market. X sells the car for 20 years successfully. considering the fact that there was not a high R&D component involved and that the market was not demanding a lot of safety and emmition control features drives home the point that X must have touched break even pretty early in business. And still after selling his car for so long, he still charges close to 2L Rs. for the car that does not have even an air conditioner.

What does that look like??
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Old 3rd February 2008, 13:25   #50
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That looks like the way any normal business would operate, unless they are in it for charity or to save the world.
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Old 3rd February 2008, 13:30   #51
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Originally Posted by supremeBaleno View Post
That looks like the way any normal business would operate, unless they are in it for charity or to save the world.
True. Maruti are not here for charity. Blame it on the other manufacturers for not having brought competition. When you have monopoly over anything, prices are bound to be sky high. But Maruti have real VFM products in B/B+/C segments. Only 800 and alto look overpriced.
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Old 3rd February 2008, 19:11   #52
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Originally Posted by supremeBaleno View Post
That looks like the way any normal business would operate, unless they are in it for charity or to save the world.
Exactly. Thats what i wanted to drive home. No one is here for charity. They are doing business. And they were making good profits too. Since they did not have competitors in that range.
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Old 3rd February 2008, 19:15   #53
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If Maruti was making windfall profits on their cars, it would reflect on their balance sheets, would it not? But that is not the case.
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Old 3rd February 2008, 19:23   #54
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Originally Posted by Mpower View Post
If Maruti was making windfall profits on their cars, it would reflect on their balance sheets, would it not? But that is not the case.

Financial Results for the YE 31 Mar 2007 says that they were making an average of 2.16 lakhs per vehicle sold, NETT OF EXCISE (i.e., cash inflow to them).

The sales came from:
Model April 2006-Mar 2007

M800 79,425
Zen 34,326
Alto 223,835
Wagon R 118,445
Swift 63,808
Esteem 23,638
Balno/Altu 6,054
Omni 81,923
Versa 1,168
Gypsy 3,221
Total 635,843




Their expenditure on production was approximately 1.99 lakhs per vehicle.

Take away the M800 & Omni which have practically no capital expenditure anymore and probably makes no contribution to depreciation, dies and tooling etc, and their cost of production would probably creep up closer to the average revenue per vehicle. Their contribution in numbers is about 25% of Maruti's sales - if the cost of sales for 25% of their numbers were not checked by these two models, it would be pretty sky high. I'd bet that if it werent for these two models they would probably be on the edge.

There are different ways of making money. You gain by gaining, but you also gain by not losing. In this case, Maruti is gaining from the latter.

Last edited by Steeroid : 3rd February 2008 at 19:40.
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Old 3rd February 2008, 19:24   #55
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Quote:
Originally Posted by gemithomas
Thats what i wanted to drive home.
I dont really understand what your whole point is about. Why would someone need to drive home a point which everyone else is in agreement with ?

We agree that they milked the market for all it was worth. But as mentioned here by many, anyone in their boots would do the same.

Last edited by supremeBaleno : 3rd February 2008 at 19:25.
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Old 6th July 2008, 11:33   #56
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Well, i see that you are comparing the two cars to death to what u think a car has to offer not looking at what the car offers for just a lakh of rupees.

Well, the maruti 800 was introduced in 84 as a complete use and throw car. got one for 40000 then, a decent quality flat in the city cost about 1.5-2.2 lakhs then.
Different technology doesn't mean is below its bad tech, 3 new cars have the speedo in the centre of the dash. one is a high end SUV. its nothing new or something bad.
How can u say that the Nano's 2 cylinder engine is bad, even before a test drive? just because its a 2 cylinder engine? i'm sorry but your being very opinionated there. Similar must have been the opinion of people when the M800 came out, they must have laughed at the 800CC comparing it to an Amby's 4 cylinder.
And why? does a car have to be front wheel front engine to qualify to be a car? the beetle has the engine in the rear which is also Air cooled.People take it out to race in the desert in the soaring heat where other fluid cooled engines cant at all go the volovo Br7's are rear engined & The car that broke the sound barrier on land was steered using the rear wheels not the front wheels. Many critics, it had.
One wiper problems? it does the job. Even the Merc SLK or CLK has just one wiper (dint u just compare some car to being as good as a merc?)
Front disc, the rear ones are still drums!! Such a light car probably doesnt need discs, nor would it go very fast to brake that very quickly, its not like the drums dont perform well or something.

There is a digital display in the meter console and it EURO 4 compliant, that makes it sell able anywhere in the world.

I like the nano, may buy it only if it comes out with an electric variant.
But aleast its completely Indian!

Im sorry to say your reasoning seems more of that of a frustrated person,as in, your are looking for follies where there isnt any major folly, trying to put the car down by doing so.
Nothing personal here.
Regards.

Hey I would like to add this.

2 Cylinder smaller engine - The alto/alto Lapina (the latest Japanese alto), the MR Wagon all have a 650 cc turbo engine in the Japanese markets. The kei cars have very small engine

Now how does this help - Better mileage.
What about highway - Dude the 800 or the wagon R are not designed for the higways . They are Kei cars and are for small families in the over crowded cities Japanese.

And another point I wanted to clarify to an order post is, Suzuki / Tata or any other guy selling a product isnt doing it for charity. He needs to make money for himself, his dealers, his share holders. Every one in the chain is making money. Prob the dealer wouldnt be making much as compared to Suzuki, with suzuki reasoning out Product Life Cycle.

The 800 we have is the 2nd generation Alto with mpfi engine. Zen being the 4 th and the current alto being the 5th. The alto lapina being the 6th.

For me and few guys who still think Suzuki is giving us the best cars ---> we had three generations of alto selling at the same time. So is the case with Swift (Maruti 1000/Esteem) and the current swift.


The flip side is , these cars have evolved as different models for the developing countires like us, Brazil and other South American markets.

About TATA, I have always had this question. If their 4 Lakh Indica dosnt have a proper fit/finish, what should we expect from their 1 Lakh sibling.

I had gone about asking every one this , whenever they said Nano. but after seing the prototype, I really would be glad if I was proved wrong.

How do you guys rate the Indica Petrol ? I loved the car during the test drive, but the bad image of Tata Motors drove me to buy a Santro.
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