[vinu_h]

I am into sales and Toyota is one that I have been in touch with for some time now. The people are wonderful and approachable. Where it sours is when they need to collaborate with each other, much like how Govt functions. The culture within is of:

Complacency - People aren't ambitious. Almost every person I have spoken to has done 10+ years in the company with less than 2 promotions in their tenure.

Infighting - Calling each other names, unprepared and more. A proposes solution 1, B proposes solution 2 and undermines each other hoping to get their idea in - all this while in a call with me.

Decision making time - Few months, even critical ones.

Hierarchy - Yet to come across an Indian with a budget and decision making power. The top 2 in pretty much every department is not local.

Lot's of room for improvement. Don't see Suzuki being any different.

[ZenMaster]

I think Maruti has enough Ammo (New models) coming to maintain their position at least for the next 5 years.

The question is when are they going to release all these new models. The quicker they do the better.

We must not forget that Maruti Suzuki is the King of late entrance. But they do mamage to more or less conquer all the segements they launch in however late they are.
Ex: Ertiga/XL6, Brezza etc.

The only big Flop(as per Maruti Standards) is S-Cross and that is mainly because neither Maruti nor the buyers were sure what category it belonged to. They can neither market it as a Big Hatchback nor a Small SUV(since it doesn't look like one).Nor does it give off a premium vibe to a user to be marketted as a "premium" product like the Creta/Seltos. The term Crossover is something Indian Buyers avoid like the plague. (They want to believe all their raised Hatchbacks and Cross-overs are all SUVs), and whoever succeeds in convincing them, wins.

The real question is what after 5 years, once EVs start to gain traction in mass market.
Will they be able to fashionably late then?

[Mafia]

Originally Posted by DicKy

Not to say, they have a slew of high riding models in the pipeline. Not sure how it will be without diesel, but the 5 door Jimmy could very well bite off the Bolero's market.

Off-Topic here.

Jimny is a high-riding capable off-roader. The on-road manners are mediocre at best. The Jimny is a narrow vehicle. The 5 door option is a 4 seater. Suzuki has only petrol engines.

The Bolero, however unrefined, scores in ride comfort, seating capacity and is rugged to take on the Indian roads.

Jimny is not in the same sphere as the Bolero in terms of market share.

[shancz]

Originally Posted by shancz

Q : Are you asleep at the controls ?
A : We're working from 0800 everyday, we keep our customers in high Esteem, but we're Zen as its our Vitara and its Kizashi.
Once we're done consolidating we can Celerio and in a Baleno we'll be set the charts on Ignis.
There will also be the sweet and Swift Jimny soon.
What do you think

-- End of hypothetical interview --

Continuing the hypothetical interview with the MSIL person today
Just added a couple of points I missed yesterday.


-- Start of hypothetical interview : Day 2/2 --

Q : Why the S-Presso ?
A : Why the SUV ? Don't you think the Alto/Celerio buyer could also need a car with more GC close to their budget ? Especially when they serve in areas with really bad roads.

Q : When are we going to see an end of your 4 speed AT(Ancient Transmission) ? Why no dual clutch ?
A : The K15B with the 4 speed TC is an adequate and reliable powertrain combination.
On dual clutches, weren't you the one complaining that you didn't like visiting our service centers ?
Do remember that the S-Cross also comes with the 1.4 Boosterjet and 6 speed AT overseas.
Also, just one more question, I have to get back to work.

Q : Need an honest answer, are you really concerned about the urban buyer ?
A : Jimny we are.
Our approach isn't as flamboyant as others but is time tested, we expand and strengthen our base before we start building higher.
When was the last time you saw a pyramid sway in the winds or crumble due to minor tremors ?
Like I said not flamboyant but time tested. Take a leaf from yesterday's answers and you'll get the reasons.

Q : Wasn't there enough time for you to "expand and strengthen the base" since the 80's? Weren't you in the best shape of all when the Swift was launched to push the envelope further and outclass everyone else? If you hadn't left the gap open some of the current players wouldn't even have surfaced ?
A : You had been given one question to ask, which you did and I answered.
Goodbye.

-- End of hypothetical interview : Day 2/2 --


Thanks for reading.

Note : Not a fanboy post, playing devil's advocate after a well deserved bashing of MSIL

[Desi Dybuk]

Anyone who has worked with a traditional Indian Lala company where the older promoters still hanging on can identify the similarities. The problems of Maruti start with their ossified leadership who have the final word. R C Bhargava, their chairman, is around 89 years old! I am sure Mr Bhargava, a former government man, who cut his teeth in the automobile industry of the austere 80s India, feels that Indians don't need any new technology or trends. I wonder when was the last time Maruti's elderly leadership drove on their own for 300-400kms to see how India's automobile landscape has changed.

These older promoters, when advised by the younger lot of the need to invest in new technology & processes, are told to pipe down & told 'this is India'. Hence the reason why Maruti still hasn't come out forcefully with an EV offering when every manufacturer out there knows that the next decade of mobility is going to be all about new energy (Electric, Hydrogen etc). Maruti has already lost the urban buyer & might even lose the rural upgrading buyer.

Maruti is going the way of Yezdi & Rajdoot motorcycles if they continue to not focus on the future. Maruti needs to infuse new blood into their decision making bodies & design teams to bring the Oomph back. Else, we might be witnessing the fading away of Maruti's dominance of the Indian market.

[Electromotive]

The problem with Maruti is that the market thinks of it as the "value" brand and not as an "aspirational" brand.
Indians buy a Maruti because they can't afford a Hyundai and don't want a Tata.

Unfortunately for MS, this "value brand" image is hard to get rid of. People will be hesitant to pay a premium for a Maruti because it is a Maruti. The only way out is to launch a new brand with a new badge if they want to enter the premium market - like Honda did with Acura, or Toyota with Lexus. As the purchasing power of the Indian middle class increases they would like to buy brands with more premium offerings, this means more sales to Hyundai, Kia and MG. This is where the real danger for MS lies.

Maruti doesn't launch new cars often because what they are doing is working well, the cash flow is there to support the rationale. It is not laziness or incompetence, they are just being efficient. If and when they start losing market share, I am sure they will either start offering more tech in their cars or launch new models or offer even better prices. Point being, it is too early to write Maruti Suzuki off, they have the market share and cash reserve to change the game when they want to. For now, I think, they are waiting and watching.

[fhdowntheline]

Originally Posted by Electromotive

Point being, it is too early to write Maruti Suzuki off, they have the market share and cash reserve to change the game when they want to. For now, I think, they are waiting and watching.

The only thing they can do is to tinker with their engines and remove a spar or beam from their Heartect architecture to eke out an extra kmpl or so, or make CNG available even to the Brezza, S-Cross and Baleno.
I think someone like TML can and perhaps already HAS changed the game with its safety quotient from the entry level segment. So unless MSIL brings in strong hybrid options , it will continue to decline in a market that will steadily become more value and tech-conscious.

[Ashdel]

Personally speaking, i cannot agree more with this Subject. With my Brezza's normal servicing cost touching 5-6K and major ones till 10-11K, i dont feel the value for money anymore. World is changing very fast with better engines and transmission options and Maruti does not have anything coming up.

Have made my decision long back, that Brezza is going to be my last Maruti car, unless they wake up. Sorry Maruti

[vvivek85]

Bang on GTO, great post. Maruti has been one company that has been complacent for years now. They have a rude arrogance that they can sell anything with S badge and our people will get it.

Our first car was Maruti Alto, it served us really well for 4 years. When we were in the market for our second car, we test drove Dzire and Xcent. When checked at the features, even SX model was well kitted when compared to Dzire top model, in fact some of the features like the option to open / close side mirrors, cooled glove box, rear AC, steering control to take calls were not present even in Dzire top model. When it came to cost, Dzire was not cheaper than Xcent, that's when I decided to not trust Maruti cars, these guys have been fooling innocent customers for years.

[Brumby]

Suzuki has run out of the permutations and combinations that were possible with a few tin cans and two (may be three) petrol engines. Increase in price is not helping either.

I do not even remember when was the last time Suzuki India had 100+ bhp in there complete portfolio, probably they are content with the thought that, "what can the Indian customer do with so much of power on Indian roads"

Like GTO mentioned, Indian customer has matured and moved to a segment (or two) higher for the preferred car choice.

[BennyA23]

Originally Posted by GTO

Not just us car enthusiasts, even the markets appear to be disappointed in Maruti. Compare Maruti's share price performance to the NIFTY 50. Especially look at the contrast in the recent years:
Attachment 2215601

Attachment 2215602

Interesting anecdote with the share price comparison.

Though I'm not a fan of their cars, have picked up some M&M and Tata Motors shares. Anyone else?

[DicKy]

Originally Posted by Mafia

Off-Topic here...Jimny is a high-riding capable off-roader. The on-road manners are mediocre at best. The Jimny is a narrow vehicle. The 5 door option is a 4 seater. Suzuki has only petrol engines...The Bolero, however unrefined, scores in ride comfort, seating capacity and is rugged to take on the Indian roads....Jimny is not in the same sphere as the Bolero in terms of market share.

I agree with the point. But there is a high possibility that Maruti will launch a 2WD version of the 5 door. Actually, that is more probable than them launching a 4WD version of the 5 door. The lack of a diesel is a big handicap, but other than that I do think that a 5 door Jimny can take away sales of the Bolero. Just like how Ertiga took over Innova's crown (though Innova vacated it and moved up), Ciaz took over City sales in addition to fleet sales, Brezza took over all of the sub 4m CSUV segments.

[clementw]

Great post! So a colleague who was bent on buying the Celerio for its benefits having done his research and convincing himself that it best suited him put down his deposit for the same. He was a two time MSIL owner. When i showed him the launch ad for the Nissan Magnite, he grudgingly went to check it out. I must admit i was shocked when after the visit he promptly put down a deposit for a new and untested Magnite from a not so popular brand Nissan and went to cancel his MSIL booking. Times are changing and even loyalists are stepping out, Maruti needs to up its game else it may lose out big time.

[1.2TSI7DSG]

Originally Posted by GTO

Not just us car enthusiasts, even the markets appear to be disappointed in Maruti. Compare Maruti's share price performance to the NIFTY 50. Especially look at the contrast in the recent years:

Share market aside, what would be the wishlist for a great "TBHP" product?

The list we make is already being fulfilled by VW/Tata/Hyundai.

From the market sentiment , they should launch Grand Vitara atleast as a competition to xuv 7 petrol.

[Desi Dybuk]

Originally Posted by Electromotive

Unfortunately for MS, this "value brand" image is hard to get rid of. People will be hesitant to pay a premium for a Maruti because it is a Maruti. The only way out is to launch a new brand with a new badge if they want to enter the premium market - like Honda did with Acura, or Toyota with Lexus. As the purchasing power of the Indian middle class increases they would like to buy brands with more premium offerings, this means more sales to Hyundai, Kia and MG. This is where the real danger for MS lies.

The onus to change the brand value lies with the brand itself. Maruti can change it's brand image if it puts in the required effort & hardwork. Just take a look at Tata for inspiration. Just about 4-5 years ago, the Tata brand name was in the gutter because of lackluster products & was known as a 'Taxi' brand. But they took risks (by investing money in designs & safety) and the efforts are paying off now. Who would have thought 5 years back that Tata would be able to sell vehicles of Rs 25 lakhs to 5000 Indians every month (Harrier & Safari)?

Maruti needs to get a new, younger management & get rid of their ossified government-mentality babus out. Invest aggressively in EVs, new-age designs & change their own perception of their brand from Value to Value-For-Money brand (look at the frenzy around XUV 7000 to know that Indians don't mind spending money).

It's obvious that the forced marriage of Toyota & Suzuki was imposed by the Japanese government looking at the future. Suzuki can borrow technology from Toyota to come up with a VFM competitor in the Creta-category with good buld quality, design pizzaz & safety features & they'll be back in the game.

Maruti needs to act like a leader instead of acting like a minnow to survive