[i74js]

More than reliability, its the comfort that is offered by MSIL - We can fix every issue that arise in the cars manufactured by us and the part availability will not be an issue.

I would say barring the "poor strength of white body of car", there is actually no other issue with MSIL if we look at how the company is operating. Safety, which was once a concern for people has been addressed by Maruti. Overall quality and feel good factor is now present in almost every offering made by the company. The repair / turnaround time is minimum for MSIL. They have been rated at the top in terms of customer satisfaction which is unbeaten for a decade or so.
What else is required? May be the new car safety norms after implementation will sort out even the body shell issues of MSIL, as they will work and improve it.

Product for every budget - check
ASS - Check
Spares availability - check
Guaranteed presence in the country till the end of useful life of the car - Check
Cost of ownership - check
Acceptance of brand in resale market - check

Seems all good that helps make a buying decision !

[vamsi.kona]

The pull of brand cannot be ignored. Even after Suzuki took majority stake and effectively removed the 'Maruti' badge from all its cars, people identify their cars with 'Maruti' brand. One thing I noted, though only anecdotal as this is purely my personal experience, is that due to the head start they got, Maruti penetrated deep into Indian Market. And with huge numbers the number of Authorised as well as roadside mechanic shops which repaired these cars increased drastically.

I cannot back my claim with solid proof, but I think almost 30% or more maruti cars get serviced outside authorised service centres. Tata was also like this, but somehow the Taxi image dented its sales. Lack of many models could also have been an issue. Also many people whom I know and own maruti cars never really bother about the maintenance of their cars as long as they are running. Many cars owned by people I know had repairs, which may not have stopped the car from running, but nevertheless would have been attended to by someone who looks after their car as more than a machine which takes them from one place to another and places some importance on the comfort as well.

On another note, with the government mulling a hike in GST for certain segments, I think the opposite of what happened in June would be felt in August. Manufacturers may produce more cars and ship them to dealers to take advantage of the brief window before the additional cess comes into play.

[Karthik Chandra]

Disclaimer: I don't own a Maruti Suzuki car. I admire the company for its responsiveness and the value it adds to itself as a company and its shareholders.

It is very easy to say that MSIL has more outlets and hence more sales, but it takes massive efforts to manage the huge network with the kind of satisfaction level that MSIL is able to achieve.

MSIL exerts strict control over its dealerships and the dealer gets severe repercussions in case of non compliance. I know because I have handled MSIL dealerships for co branded credit cards when I was working with SBI.

On Safety

MSIL has improved the safety quotient of its cars. All variants of all nexa cars and the new Dzire have

# Dual Airbags
# ABS with EBD
# ISOFIX mounts
# Seat belts with pre-tensioners and load limiters

The next gen Swift will get these as well. Its only a matter of time that these will become standard in all models.

Crash test hasn't been done for all cars sold in India, so when it comes to crash worthiness MSIL cars are as safe/unsafe as any other car on sale in India with the exception of Polo and Etios since both have scored 4 stars with their body shell deemed as stable.

Originally Posted by igp_79

It is our herd mentality that is one of the major reasons to blame for the shortcomings of the Indian car scene. We as a people play it very safe and give a hard time to the fringe players. We are more complacent than passionate. We choose mediocrity and safety over excellence and exoticism. Maybe that explains a lot of things about India.

While agree with the herd mentality, MSIL has to be given credit for not being complacent. Its very easy to become complacent when your nearest competitor does only 30% of your volume, but MSIL has constantly been improving things.



The volumes have increased from an average of 88K units in 2013 116K in 2106. Its currently @ 128K for in 2017. From 2013 to 2107, in 4 years MSIL has increased its volumes by 40K units, the volume of its nearest competitor

The market share has increased from 47% to 52% during this period. Increasing market share on a base of 1 lac units is not an easy task. To put things in perspective Fiat is losing share on a base of 500 units.

This is because MSIL consistently

# Upgraded existing models
# Phased out irrelevant models
# Launched relevant products @ appropriate prices

Also note that during this tenure companies like Chevrolet, Nissan, Skoda, Fiat and VW have lost market share.

Reason: None of them launched an all new product. Nissan launched a sub brand Datsun (new brand/product in India), which incidentally is doing well than the parent company.

Companies like Hyundai, Mahindra, Honda, TATA, Toyota and Ford have sustained their market share to an extent because they have updated existing line up as well as launched new (next gen) products.

To its credit MSIL

# Introduced the AMT, most affordable AT technology for the mass market. AMT is the reason for AT penetration/acceptance in mass market.
# Introduced SHVS, huge cost advantage for Ciaz and Ertiga. One of the main reason for Ciaz to overtake the city. (of course MSIL took advantage of a loop hole and benefited & SHVS has lost relevance now)
# Started launching quality products - S Cross, to be launched Grand Vitara.
# Upgraded/launched products in line with customer demand and market preference (Launch of Brezza, AT in top trims in the most selling segment - The Baleno and Ignis Alpha)
# Launched the boosterjet engine.

The market share will only increase with the launch of Petrol and AT variants of Brezza and S Cross.

Originally Posted by Mr.Beat

The reasons are not solely of herd mentality always but great product positioning as well. You can consider any segment from Alto to S-scross and you go out to the showrooms and take test drives and i am sure you will have Maruti in your shortlist.

MSIL has a model for everyone with budgets from 3 lacs to 15 lacs

Originally Posted by romeomidhun

But see how Maruti responded?

A-Star and Estilo were replaced by a Celerio; and the average sales volume now is 6-7K!
SX4 was replaced by Ciaz, a tough competitor to City!
Versa was literally chopped to Indian "size" and see how Eeco performs!
Ritz was replaced by Ignis and positioned as a life-style car, and sells 5K units on an average.
Baleno name was brought back with a hatch that sold 19K units last month!

It's not like "all cars from Maruti are there in the top 25 sellers' list". They replaced even the slow sellers with better products.

[discoverwild]

Originally Posted by Sree73

Attributing Maruti's success and market position just to the early mover advantage is total injustice to that great company and brand.
They acquired that position not because of early mover advantage. They worked very hard and tried addressing what the customer needs.
Inspite of being a leader with more than 50% market share, they still maintain one of the best after sales service and customer relationship/focus.
Ignoring all these and blaming herd mentality and looking for only 'first mover advantage' is like other brands not realising the presence of a log in their own eye, but finds dust in that of Maruti's.

Which other company can dream of 2000 showrooms in India? That's where the early advantage comes in. And the early advantage was not a couple of years but two whole decades!!

There was a time when the only cars we could buy were an Ambassador from HM or a Padmini from PAL for decades. Maruti had the advantage of being fresh off the gates.

There's no taking away that they have a commitment to A.S.S even though there are horror stories (they are perceived to be better than others). Like I said, tap the heart and say "All is well".

You own one of the better products from them. You are lucky. Try out the body shell of any of the other hatches in their stable and you will find the difference. We still have my father's 26 year old M800, which has better sheet metal than any of the newer products. Between the M800, M1000, Esteem, Gypsy King (as personally owned) and the Alto, Zen, WagonR from that of friends, I do have a solid background towards their older cars.

[romeomidhun]

Originally Posted by discoverwild

Which other company can dream of 2000 showrooms in India? That's where the early advantage comes in.

So you say that the number of showrooms is the main reason why Maruti is selling more than others? Then think about the Nexa chain. It started just 2 years back. They sold around 33K units last month. Name any other manufacturer other than Hyundai who crossed that number.

Yes, Maruti may not have good products in the taxi segment, but come to the personal use and you will know the difference.

[discoverwild]

Originally Posted by romeomidhun

So you say that the number of showrooms is the main reason why Maruti is selling more than others? Then think about the Nexa chain. It started just 2 years back. They sold around 33K units last month. Name any other manufacturer other than Hyundai who crossed that number.

Common sense says that the Nexa badge belongs to the "reliable", "trustworthy" and "SAFE" brand, Maruti, that "pleases" everyone.

Yes, Maruti may not have good products in the taxi segment where you are interested, but come to the personal use and you will know the difference.

Thank you. I don't have to explain my point any further. I shall pass the personal remark as a joke.

[igp_79]

Originally Posted by romeomidhun

Can you name those "exotic" cars made here but failed because of the customer's mentality?

I agree with your argument on most counts. Perhaps, I have been misunderstood. I did not mention Exotic cars. By saying lack of exoticism in the buyer's mindset, what I meant was the average Indian buyer is not swayed by a product that is exceptionally well executed in terms of design or engineering. A product that pulls at your heartstrings.It may not be practical. It maybe a little more expensive. But it is tremendously desirable.

What I am trying to say is, we attach too much importance to playing it safe, and the price factor in all our purchase decisions, not just cars. These factors are very important. But not to the point that it obscures other equally important aspects of a purchase decision. Of course we never go wrong and will be contented with such a safe decision. But that bargain will result in a lack of variety in the market simply because the investors too want to play it safe and many or too wary to invest at all.

I am a case in point. The average Indian customer .
I am out in the market for a highway vehicle. I loved the Hexa and so badly wanted to put my money on it. The discouragement from family and friends was so thick, that I could cut it with a knife!!(many of them, not car enthusiasts and knowing full well that I am their Go-to man for vehicle related queries.)

I finally lost my confidence and chickened out. Though there is a lot of pressure to pick up the Creta, which according to everyone is a safe bet, I am almost set on the Compass. Hope I don't chicken out of this choice too!

[niranjanprabhu]

Originally Posted by SPARKled

F

The Baleno is far away from any of its competitors and it's numbers are mind boggling.

Someone bought a GT-R last month which is the only joy in an otherwise sorry as usual month for Nissan. Somehow I think Nissan will be next big one to close its Indian operations.

Surprisingly the Baleno is built very weakly and I hope these huge numbers dont come back to haunt Maruti in the days to come. Technicians in service centers dont hold it in great regard. The Heartect platform seems to be an unsafe platform and I hope Suzuki does something soon to correct this perception

Yes I agree that Nissan is definitely the next one to shut shop in India. The Nissan Qashqai is coming in as the Renault Captur and the Nissan Micra (the new one) should come in as a Renault Pulse.

[niranjanprabhu]

Originally Posted by Mr.Beat

2. You don't hear of mechanical failures associated with the so called well engineered Germans

You nailed it bro! This is an issue with so many German products including Siemens. Anything goes wrong and you will hurt very bad when it comes to paying for repairs. Something in reliability that the Japanese have mastered.

[uthra]

Originally Posted by niranjanprabhu

Surprisingly the Baleno is built very weakly and I hope these huge numbers dont come back to haunt Maruti in the days to come. Technicians in service centers dont hold it in great regard. The Heartect platform seems to be an unsafe platform.

I know the baleno sells in tons, looks beautiful and is a maruti. But this part is true. The MASS I have been going to for the past almost seven years has people working there for more than 10. They all agree that the build quality has gone down drastically. Swift windscreen gets loose every summer because the plastic is so weak it expands and contracts. Baleno was actually advised against by them and FNG mechanics because it is not supposed to be reliable per them with lots of niggles. Newer Wagon R rattles even more than the older ones and the older wasnt exactly very solid to begin with. Being Maruti is great but the company does need to work on its quality.

[sudev]

A company that innovate and looks at beyond current sales to increase sales will move. Case in point at http://www.team-bhp.com/forum/showthread.php?t=189338

Second reliability and adapted to local conditions. If the vehicle uptime in remotest of places remains good then people will buy. Mahindra base platform in rural heartland is case in point.

[Coolman]

Dear folks,

One has to study the market and then plan / deliver the strategy that suits the market in question.

• A great working strategy that has worked wonderfully elsewhere, if it fails in the current focus area, that strategy doesn't become any poorer nor does the market in question should be made to own up for the failed strategy. It simply means that a different strategy was needed!
  
  
• The segment and the market leaders have figured it out, the competitors are trying to and those left behind are all at sea.

Herd mentality knows no bounds, even the filthy rich don't detest a Gas Auto, and that's because it comes from Volkswagen!

Let us take a moment to congratulate all Automakers that have done well this month and let us wish the Competitors to catch up as quickly as they can!

Thanks,
C_

[volkman10]

Ignis petrol variant in demand, outsells its diesel counterpart.

Maruti Suzuki Ignis’ petrol variants registered 4,208 units last month which was in stark contrast to the diesel models that sold only 227 units.

link

[highonwheelz]

Originally Posted by discoverwild

We, as a country, are not risk takers. We like to be in a safe cocoon where we are not judged as rebellious (father, mother, wife, father in-law, Sharmaji, friends, office peers, neighbours). We want to please everyone. So, even if the final product is mediocre (poor value compared to a similar offering from another brand) we will just tap our hearts and say "All is well". Maruti knows this and exploits this mentality to the core.

Originally Posted by discoverwild

Which other company can dream of 2000 showrooms in India? That's where the early advantage comes in. And the early advantage was not a couple of years but two whole decades!!

There's no taking away that they have a commitment to A.S.S even though there are horror stories (they are perceived to be better than others). Like I said, tap the heart and say "All is well".

Just to clarify a few things here. What is this first mover advantage that people are talking about? Hindustan Motors, Fiat, Standard etc. were all present even before Maruti was formed, but they still didn't go on to become the company MSIL is. In fact, even if there was a first mover advantage, it is not easy for a company to keep itself from becoming outdated and losing connect with the masses. Maruti has always been a company which has innovated itself. Case in point, Nexa and the new true value.

They have also been trendsetters in the industry. MSIL was the first company to get into the organised used car business (True Value) and then everybody followed suit with First Choice, Advantage etc. MSIL also were the first ones to start with organised driving schools. These are little things which a company with a dominant position could have chose to ignore, but they didn't. One thing MSIL has never been is arrogant or complacent of their market position. They have never taken their dominant position for granted. They have worked hard to keep innovating themselves to stay relevant in the market.

Most of all, just having a big network is not enough, it becomes more of a pain to ensure quality across 2000 sales and service outlets. Skoda struggles with ensuring quality across less than a 100 outlets. There are "horror stories" from MSIL as well, but considering the sheer number of cars they sell and service, the complaints that we hear about are miniscule. Compare this with other companies who sell a few hundred and generate as many complaints as MSIL does.

Hence, my point is that Indians don't prefer MSIL because "Sharmaji said so" but because they get fuss free ownership, un rivalled after sales service, rock solid resale value, and a bit of fuel efficiency (which IMHO is not that much better than the competition). Us armchair critics look at only build quality and diss a product when we aren't actually going to buy it. But for the ones who are going to drop some hard earned dough on it, sadly have a lot more aspects to consider than the average petrol head.

[discoverwild]

Originally Posted by highonwheelz

Just to clarify a few things here. What is this first mover advantage that people are talking about?

"Maruti was established in February 1981 by Sanjay Gandhi on Background of Government of India though the actual production commenced only in 1983. It started with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India. Its only competitors were the Hindustan Ambassador and Premier Padmini. Originally, 74% of the company was owned by the Indian government, and 26% by Suzuki of Japan.[13] As of May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog."

" In India's closed market, Maruti received the right to import 40,000 fully built-up Suzukis in the first two years, and even after that the early goal was to use only 33% indigenous parts. This upset the local manufacturers considerably."

https://en.wikipedia.org/wiki/Maruti_Suzuki

I did type a long reply, but then I deleted it because it has been repeated many times here. Do read the link to understand more about how Maruti managed to get such a large market share.