Team-BHP - Maruti Suzuki looking to foray into LCV space with Super Carry

Maruti Suzuki, India's largest car manufacturer, is exploring a foray into India's fastgrowing small commercial vehicle space.
But with the development of company's two-cylinder, 800 cc, diesel engine for the passenger car shifting to India, it is actively exploring options to use the potential workhorse to enter the small pick up truck market.

Cheers!

http://economictimes.indiatimes.com/...w/17684808.cms

Tata's and Mahindra's watchout! Maruti may be creating another segment leader here. No more chhota Haathi's or Maxximo's. Can maruti not chop the rear of the Ecco and sell it as a pick-up?

Picture courtsy - Google. Copyright, respective owners.

I feel they should have entered this segment long back.
Seems like lack of smaller LCV class diesel engine kept them away from this segment. Perhaps they may try with CNG?

So is it Omni based Ravi they are thinking about?
Pic : From Suzuki PK

Tata has already captured the LCV market and has gained people's faith with its ACE line-up. It has wide-spread service network which is a further advantage up its sleeve. Maruti will have to be sufficiently prepared before entering the market. I just hope it doesn't use its existing passenger sales outlets to sell its LCV.

Ashis89, Maruti will use its existing dealer network. They have the largest dealer network in the country, even remote towns have MSIL showroom + service; why bother setting up a new network? Besides, Ecco cargo, Omni Cargo all are sold through the existing network.

hmm.. huh... aah... oops...
This news is a bit distracting to me? Am I the only one who feel so?

Maruti, never had a Diesel engine. what they have is the DDIS from FIAT. Now, putting the same into a LCV's will void their contract. isnt it? It was licenced to use in Passenger cars.

Now, using the same engine in LCV's. I know that the MJD is one good engine in the current diesel engine market. but can it power the LCV's? Can it give the required torque. Maruti would give very short gears for better drivability with load but .... No comments.

Comming to Tata's and M&M's. they are ruling this segment. Recently Ashok Leyland has made their entry with their DOST. If Maruti could grab a decent share from this sector, who would be the loser? Because this market is exhausted long back. The volumes are not great. (From recent Ashok Leylands interview. Also from news that Tata's sales in commerical auto's fell by 46% or so. )

Quote:

Originally Posted by ashis89 (Post 2995377)

Tata has already captured the LCV market and has gained people's faith with its ACE line-up.

If anyone can challenge that, it's Maruti. They are very good at exploiting the potential of new segments in the sub-10 lakh categories. See how their first diesel UV (the Ertiga) is storming up the sales charts. Maruti gave the customer exactly what he wanted.

Also, Maruti's sales & service network is actually an advantage vis a vis Tata. Both, in terms of coverage & quality.

Quote:

Originally Posted by gemi_kk (Post 2995460)

Maruti, never had a Diesel engine. what they have is the DDIS from FIAT. Now, putting the same into a LCV's will void their contract. isnt it? It was licenced to use in Passenger cars.

Please refer to the opening post. It clearly states (and has been rumoured for a while) that Maruti is currently developing a 2-cylinder small diesel.

Mostly we may see either the Carry(Omni/Eeco) pick ups or APV vans plonked in with the rumoured engine. Maruti can sure do it, Omni has been doing it for decades, dong things that it's puny size would fool you to disbelieve. Only thing lacking is a diesel engine. Give it one, don't know what will happen to Ace.

Im surprised it actually took MSIL this long to think about servicing this growing segment. The vehicle being discuss slots into the SCV sub-segment of LCVs.

Frost & Sullivan estimates that the LCV segment in India could potentially cross the 800K\Yr mark in 2016 so there's certainly room for new entrants considering current sales of about 400K\Yr (as far as I am aware).

Even when CV segment sales are low, LCV\SCVs generally fare much better than the Medium & Heavy CVs

Quote:

Originally Posted by amtak (Post 2995385)

Maruti will use its existing dealer network. They have the largest dealer network in the country, even remote towns have MSIL showroom + service; why bother setting up a new network?

This might not be good for Maruti as a Brand, it is still seen as a predominantly consumer brand.

Asking dealers to use separate real-estate for commercial sales and service might be an option.

Quote:

Originally Posted by NetfreakBombay (Post 2995584)

This might not be good for Maruti as a Brand, it is still seen as a predominantly consumer brand.

Asking dealers to use separate real-estate for commercial sales and service might be an option.

Mahindra sells, its PIK-Up UV's and other vehicles from the same showroom from where it sells the Rexton; to keep a distance between a Premium consumer and a budget one; they keep premium cars at one floor and commercial ones on another on in some sections, commercial on one side and private on another.

Quote:

Originally Posted by amtak (Post 2995726)

Nope. Not at all. At least not here in Hyderabad for sure. The passenger vehicles, yes, they have different floor spaces for Rexton and XUVs, Scorpios, Boleros and others; but the pikups and UVs are not at all sold from the same showroom. And when it comes to servicing the Rextons and XUVs are serviced in a different service station from the rest of the passenger vehicles barring a few exceptions.

Even the much despised Tatas (where a cabby and an Aria customer jostles for the limited space of the counter) the UV business is completely separate from that of their passenger cars. I believe Maruti also needs to do that if they do not wish to dilute their brand equity.

Agree wholeheartedly with GTO there. Maruti has always had and still has the pulse of this nation, and it will not take long for them to find that in the small pick-up truck market as well. They have so much to leverage from their own passenger vehicles business. The LCV space is an area just waiting to explode - and if they put their heads into it, no reason why Maruti cannot kick anyone else's backside. They have a kickass history after all! ;)

I think with the development of their two-cylinder, 800 cc diesel engine, Maruti could really nail it in the load-carrier segment.

2017 or earlier, the Tatas and Mahindras better watch out; the giant is waking up from slumber. Or rather he is already stretching now!

Ravi has been with Suzuki Pak since long, hence OMNI diesel pickup and its variants seem obvious to me, i doubt if this 2cyl engine can be used in EECO.

OMNI is also a established vehicle in INDIA and this will help them tremendously.

With basic omni petrol costing below 2.5 lakhs, omni diesel should cost lesser than ACE and Maxximo.

:OT but the exciting part for me would be Omni diesel passenger variant,we sure are in for some exciting times.

I dont think, there seems to be any threat for existing players, due to Maruti.
Maruti does not have any experience in making a Commerical Vehicles in India, but the little lived Omni Cargo. There exists a vast level of key buying factors between passenger car and commercial vehicle. Also the reliability, durablity are completely different between these two. It goes to the extent that, the definition of these phrases itself is different.ALl these understanding is to be done by Maruti before developing something for Indian CV space.

A brand ok in a part of automobile, need not be always better in other areas as well.

I strongly say, that its a wiat and watch for existing players and nothing to panic.