Re: Forbes: The reboot of Maruti Ho-hum article. Does not provide any details about any path breaking initiatives Maruti took to protect its turf or to further innovation.
To my mind: if one looks at Maruti's chequered history in the land of Bharat, there seems to be 4 significant inflexion points, created by 4 products:
1) The original 800 which put the nation on wheels and helped in mass motorisation to a very large extent
2) The Zen. Created the 1-litre hatchback segment. Also drove home the point that econo-boxes can also be fun to drive.
3) The original SWIFT. Created the "premium hatch" , segment along with radical styling. Helped in raising Maruti's image from a maker of humdrum automobiles to stylish, good to drive cars. The Swift created a "desire" (pun-intended), in young people to "own" the car.
4) CELERIO AMT. Convenience of clutch-less shifting brought to the mass market below 5lakh rupees without affecting fuel bills.
Caught the attention of young, urban car consumers of India who wanted a stress - free runabout but were hesitating to fork out big money towards Maruti's competitors either because they were too expensive or not very fuel efficient.
But the fact still remains is that the core area of Maruti still remains untouched. That is the ALTO class of vehicles.
Tata had a brilliant concept which did not take off due to a multitude of reasons discussed many a times within this forum.
Hyundai's EON was priced out of the A-segment "sweet spot" and was never much of a threat, although in terms of product quality it was perceptually better than an Alto.
Chevrolet could have done a very good job. Only it didn't. GM just could not position itself in the mind-space of aspiring first time car buyer or the second-car-in-the-family-buyer segment. The Spark though a competent vehicle was killed by its maker.
So who can? Datsun : doubtful. Going by the public perception it is still a fringe player.
Renault ? Don't know, difficult to predict, but if one closely tracks the performance of the French automotive company, it seems they have been pretty successful with their "own" products, not the cross branded one's.
What is being bandied about in the media, it seems that the new Renault small car will be a pretty stylish, competent vehicle, equal if not better to the market leader.
Also bear in mind that the Gauls, i.e. companies like Renault, Peugeot, Citroen are pretty good at making stylish, well kitted out small hatchbacks that are good to look at and good to drive as well. Globally.
It will be interesting to watch the A-segment space. My feeling is that in the coming years, the A-segment will slowly move up and settle somewhere in the 3.6-4lakh rupee bracket.
The future A-segment will cater to first time buyers, in fact the percentage of first time users will reduce, as the "FTU's" - with higher aspiration levels, will tend to gravitate towards the B-segment.
The A-segment in future will cater more to the "second-car-in-the-family" segment, to buyers who are already owners of an existing vehicle.
Because of their prevailing vehicle ownership experience, this new segment will start demanding higher value for money & newer features in their "A-segment" hatch. They will be more mature in evaluating their vehicle, on all parameters and FE will not be the sole criteria in choosing an A-segment model.
Does Maruti have such a model in their A-segment now? Think not.
And he who gets there first , will make the first chink in Maruti's impregnable A-segment armour. It need not be big in volume terms, but even if there is a minor, but consistent, market share percentage drop in the "ALTO" segment for Maruti, the psychological effect of it will be tremendous on Maruti's management.
Let's see who does that! We at T-Bhp would be watching! |