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Old 25th January 2022, 12:31   #16
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

Quite frankly, Ertiga twins' success gets on my nerves. They took off the diesel altogether from their portfolio, not wanting to upgrade to BS6 even as India remains their largest market, sold a inferior 4 speed AT on their petrol, sold the same car in two showrooms (ertiga on regular showrooms and XL6 on Nexa) with differential pricing and got all of 3 stars in the NCAP, all for a car that costs nearly 15 lac on road in my city.
Marketing brilliance alright. But this unfortunately becomes a template for other manufacturers to follow.
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Old 25th January 2022, 12:33   #17
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

Excellent analysis @pqr. I always wanted to do this, but lazy me. You have done a much better job. Someone at MSIL can present this to their senior management and get brownie points. That is the quality of your analysis in my opinion.

Ertiga has always been more VFM product than any other in the segment. I also feel personally that it is one of the better built Maruti products, specially compared to my 2016 Baleno. And on that front, while there is rumor about Maruti aiming for a GNCAP 4/5 star rating with the Baleno facelift, I wish (really wish) they do the same for Ertiga and XL6 siblings. If this car upped it's build quality and crash safety rating, it will set the sales charts on fire.
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Old 25th January 2022, 13:36   #18
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

Quote:
Originally Posted by veyron_head View Post
They took off the diesel altogether from their portfolio, not wanting to upgrade to BS6 even as India remains their largest market,
Not just Maruti, but most other manufacturers across the world are also getting rid of diesels. Can't single out Maruti there.

Quote:
sold a inferior 4 speed AT on their petrol,
Though old, it is still doing the job. And that's what Maruti cars stand for, right? And then automatics are much better than some of the notorious AMTs used by some manufacturers.

Quote:
sold the same car in two showrooms (ertiga on regular showrooms and XL6 on Nexa)
Again, not a bad thing when they offer a relatively better experience.


Quote:
with differential pricing
Yes, but the pricing is still better than many of its competitors.

Quote:
and got all of 3 stars in the NCAP
And any additional stars Hyundai / Renault offers?

Quote:
Marketing brilliance alright.
I don't think Maruti is doing anything different or brilliant from others when it comes to marketing. But their customer experience, service availability, cost of ownership and hassle free experience are attracting many people towards it. I've seen many young millennials switching to other brands for a change and come back to Maruti. Can't blame Maruti for that. It's not marketing. It's because of their cars and customer care - I'll say.

Last edited by romeomidhun : 25th January 2022 at 13:41.
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Old 25th January 2022, 13:52   #19
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

I am using Ertiga Zxi+ which I bought just 6 months back.

Please find below feedback after driving it for 5K Kms including 3-4 highway trips.

- Most value for money car in its price bracket. I got my car for 11.3 Lakhs on road which is much less than cars other like Honda City, Tata Nexon, Hyundai Creta, Innova Crysta which I considered when I was buying.
- The list of features I got at that price is unbeatable. It has almost all features which normal user wants.
- 1.5 Liter is a gem of a engine from Maruti. It has sufficient power, its very silent till 100 KMPH and very fuel efficient too. I get 13-14 in City and 18-19 on highways with AC on.
- AC is very good, has duel AC too. ACC works like a charm.
- Interiors are simple and clean, looks very elegant.
- Touch screen with reverse camera is very good common man.
- I like flexibility it offers. You can easily go 5 + 2 Kids in good comfort.
- For city use, 7 adults can also go.
- Very spacious when you have only 5 people, better space than cars like City, Nexon, Creta etc.
- It gives you almost everything which Innova gives at only 40% cost and does few things better than Innova. Mind it !!
- Suspension is very good and ride quality is plush.

I am more than happy with my purchase. To understand capabilities of Ertiga, you need to drive it and experience it for few days, then only you realize how good it is. It gives you multiple options.
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Old 25th January 2022, 13:55   #20
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

Thought evoking writeup !!
I feel one major change along with the price correction, which will truly lead to realisation of the market potential Marazzo has, is change in its looks. Mahindra must try to bring in some SUVesque changes in the vehicle design which should make it look more muscular and attention worthy, something whichTATA did with Aria .
Actually Mahindra should go one step further and bring in changes on the line of Ertiga IInd generation/XL6, leading to differentiation of this product aiming both at private consumers and taxi operators.

Last edited by fawad0222 : 25th January 2022 at 14:00.
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Old 25th January 2022, 16:56   #21
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

I think the Ertiga, XL6 and Innova are targeted towards a completely different customer segments.

a. Ertiga always had this VFM tag with it, targeted towards customers, mainly yellow number plate, looking for a 6 to 7 seater 'Cost Effective and Reliable' option. With Gen II, the value proposition only increased.
In this segment, there is/was no competion to Ertiga with Maruti's reliability and VFM on the offer. Among Maruti, Mahindra, Tata, and Toyota being the flag bearers of the yellow number plates in India (Hyundai is an exception, but mostly found for urban city commute), only Ertiga fits the bill.

b. XL6 is targeted towards private owners, which wanted a bigger accommodating 5 people at ease with luggage. Again here, reliability and cost factors are mainly in focus.
IMO, for XL6, competion is from the likes of CRETA and SELTOS. However, XL6 offers similar value with 35% to 40% discount. Also, the maintenance cost of a Maruti is always works out cheaper than that of Hyundai. Kia is yet to establish the long term reliability and maintainability (and very much likely to be same as that of Hyundai).

c. Innova is a premium brand and targeted towards customers for whom 'Comfort and reliability' is the main focus. Cost is not a factor here. With Toyota's reliability where the vehicles are known to outlast their owners, and comfort at longer distances is at par (or even more) than the german behemoths, there is no direct competion to Innova.
Customers looking to rent Innova at Rs. 16+/km, do not prefer Ertiga at Rs 12/km (or any other car).

And hence, the rising cost of Innova has little effect on the sales of any of the cars in the consideration.

And Mahindra got it completely wrong with Marazzo IMHO. With the hybrid structure and the cost, the proposition was not apt to target the Ertiga's segment. And Mahindra's reliability and maintainability cannot match that of Toyota's. So it did not fit any of the available segments. And Marazzo was never a car which could have created its own segment.
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Old 25th January 2022, 18:57   #22
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

Quote:
Originally Posted by aniketi View Post
I am more than happy with my purchase. To understand capabilities of Ertiga, you need to drive it and experience it for few days, then only you realize how good it is. It gives you multiple options.
Frankly, I do not like Innova, because of its periodical price increase. But the components used (esp the suspension arms, stabilizer bars) are robust that the ride quality is always better at high speeds. Generally this is one of the reason that covering long distances is much quicker in Innova than other cars and of course you pay a hefty premium. The same thing cannot be expected in other MPV's.

Quote:
Originally Posted by CEF_Beasts View Post
Now the next big thing to see in the MPV/MUV market will be Toyota’s upcoming Project B560 MPV scheduled for 2023, a FWD full petrol-hybrid. So where will Toyota’s rebadged Ertiga (Rumion) fit? Are some questions I have. (Rumours are it’s a FWD Kijang Innova with a monocoque chassis, a departure from the Crysta’s Ladder-on-Frame RWD)
No wonder if XL6 and Ertiga will be rebadged soon and sold by Toyota.
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Old 25th January 2022, 19:01   #23
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

Ertiga deserves all the success and is a truly value for money. It shows Maruti's understanding of the Indian market.

However i disagree with the original poster's analysis of the Marazzo. Marazzo is bigger inside on most dimension than not only Ertiga but even than the Crysta. In fact Marazzo is probably the only vehicle in which the third row is wide enough to take three people.

Marazzo being difficult to service is a myth , just ask the actual owners.

Marazzo's depth of engineering is at a different level. Superb cabin insulation, solid build, double wish bone suspension, all four disc brakes, high quality double door beadings, full wheel well cladding, full engine protection, diffused mode AC to name a few. Also comes with a superb diesel engine which has terrific fuel efficiency.

Maruti has cleverly cut costs in the Ertiga in places it know people won't notice: - sound insulation, super thin window panes and outer sheet metal, no engine guard etc. Marazzo on the other hand hides it virtues which become apparent only when you own one.

Ertiga has a kerb weight of just 1170 kg which in my opinion too less for a 7 seater and more in the hatch back category. The percentage weight increase when fully loaded will be high leading to drastic changes in vehicle dynamics. And even with such low weight, it just manages to get a score of 9.25 in adult protection whereas Marazzo with a kerb weight of 1640 kg has an adult protection score of 12.85. Getting a higher score on heavier vehicle is much more difficult and speaks about the build quality of the Marazzo. Also a heavier vehicle with the same GNCAP score is safer.

I think these are the reasons Marazzo does not sell:

1. Poor availability. Mahindra does not want to sell the vehicle. You would think that a vehicle which is selling is such low numbers would be readily available. That is not the case. Mahindra has several months waiting period for the Marazzo. Mahindra is clearly prioritizing XUV 700/XUV 300 at the expense of other models.

2. Lack of appreciation of finer aspects of engineering by the common people. GNCAP scopes who cares. Double beading on doors, rear disc brakes, wind tyre insulation is not what the common person looks at.

3. Lack of features at the price point.

4. Minivan looks. At the price Marazzo retails the average user is not only looking at utility but also aspirational value. They want "SUV" looks. Innova is an exception since the brand value of Innova is so strong.

5. Lack of drive train options. No petrol no AT.

6. Poor marketing by Mahindra. First they had the inane shark advertisement. Than they had the insipid "think together think better" campaign. Mr Anand Mahindra seriously need to fire the guys who ran the Marazzo marketing campaign.
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Old 25th January 2022, 19:15   #24
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

Quote:
Originally Posted by RGK View Post
Frankly, I do not like Innova, because of its periodical price increase. But the components used (esp the suspension arms, stabilizer bars) are robust that the ride quality is always better at high speeds. Generally this is one of the reason that covering long distances is much quicker in Innova than other cars and of course you pay a hefty premium. The same thing cannot be expected in other MPV's.

When I bought my Ertiga, I considered Innova as well. But seeing price of 27+ Lakhs on road for mid variant, I was literally shell shocked. It is big vehicle but still lacks boot space with 3 rows up is a big miss for me. Even new Ertiga has better boot with all 3 rows up. Innova is definitely good for long distances but for normal family man like me, Ertiga is more than sufficient who does it occasionally. I went to Goa recently (450 Kms one way) and me, family didn't find it tiring at all. Body roll in new Ertiga is much less and suspension is beautifully tuned. Most important thing for me - Ertiga is more like car to drive whereas Innova is typical MUV style.
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Old 25th January 2022, 21:03   #25
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

Excellent write-up!

Ertiga + XL6 combo is a perfect case study for other manufacturers to learn, how to know the market requirment and nail the product.

XL6 only need a (panoramic) sunroof to increase the sales by atleast a 1000/month.
6 speed automatic and 1.5L diesel will surely attract many C-SUV and sedan buyers and increase the sales further.

A chance missed by Mahindra, even with ertiga being a fantastic example to refer.
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Old 26th January 2022, 07:53   #26
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

Even after paying higher GST(compared to <4m cars), the some variants of the Ertiga are cheaper than smaller cars like the Hyundai i20. All while offering acceptable levels of quality and features with the legendary reliability.

Maruti hasn't tried to go near Toyota's turf and that is a good thing. They have positioned the Ertiga as a sedan/compact SUV alternative. I assume there is hardly any cross shopping between the two. I doubt anyone would ever spend days deciding whether Ertiga or Innova.
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Old 26th January 2022, 12:40   #27
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

Quote:
Originally Posted by JediKnight View Post
However i disagree with the original poster's analysis of the Marazzo. Marazzo is bigger inside on most dimension than not only Ertiga but even than the Crysta. In fact Marazzo is probably the only vehicle in which the third row is wide enough to take three people.
An, excellent analysis of Mahindra Marazzo and a detailed explanation of its strengths and weakness at company level. Your post on Marazzo makes owners of Marazzo even proud. I would like to add a few more points to justify Marazzo.

1. The Van looks that Marazzo has is justified as this it makes the optimum usage of space inside. Even a 6 footer like me comfortably fits inside the third row comfortably with ample headroom.

2. It is the most VFM product in its price range. But agree that adding extra features, Petrol engine and an AT gearbox will definitely add to the monthly sales nos and unlock the true potential of Marazzo.
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Old 26th January 2022, 13:17   #28
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

To those who are referring to the segment ertiga and its competitors belong to : its good to have segments but its ultimately what a car is able to achieve that matter to a buyer. If an Ertiga can do everything that cars 5 lakh costlier do and some more, how does it matter how it is "segmentalized". Have to give it to Maruti for providing pure value. It's one car that has very less compromises. Neither on quality, space or the engine itself. Speaking of safety, it's not like the Hyundais are very safe.
Disclaimer : I support safe cars and would still love to see Ertiga with 5 stars.
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Old 26th January 2022, 13:37   #29
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

Quote:
Originally Posted by JediKnight View Post
Marazzo being difficult to service is a myth , just ask the actual owners.

Marazzo's depth of engineering is at a different level. Superb cabin insulation, solid build, double wish bone suspension, all four disc brakes, high quality double door beadings, full wheel well cladding, full engine protection, diffused mode AC to name a few. Also comes with a superb diesel engine which has terrific fuel efficiency.
.
While I would not justify the shortcomings you might mention about the Ertiga, I would like to bring some aspects about the Marazzo. Firstly, being difficult to service is not what an owner can tell. Ask the mechanics who actually work on the car especially the independent garages who have handled this car. You might question their skills. But fact is that like I mentioned, these guys are the word of mouth influencers for the fleet market and many buyers who are not enthusiasts or have access to electronic media. For any car to achieve success in the mass market this is necessary. The car being a Body on Frame with transverse engine and FWD configuration itself makes things a lot complicated in the suspension, sub frame and drivetrain. Any idea how many cars have this sort of an arrangement? Of course its a one of a kind engineering achievement, but is definitely not the most reliable one especially when it comes to taking abuse or being a part of the taxi market. The Ertiga or the Innova have a huge fan following in the taxi market and there are reasons for this.

Of course, no one is questioning the positives of the car, but that does not mask up the shortcomings.

Quote:
Ertiga has a kerb weight of just 1170 kg which in my opinion too less for a 7 seater and more in the hatch back category. The percentage weight increase when fully loaded will be high leading to drastic changes in vehicle dynamics. And even with such low weight, it just manages to get a score of 9.25 in adult protection whereas Marazzo with a kerb weight of 1640 kg has an adult protection score of 12.85.
If you weld a ladder frame below the Ertiga and adapt the suspension for this, I am sure the kerb weight of the Ertiga will also increase by a considerable amount. Not sure how that comparison is valid. In that manner the Innova almost reaches 1900kgs of kerb weight for the top end variant. What would you conclude with that?

Having driven all the three cars, Ertiga, Innova crysta and Marazzo, I can safely say that with high speed handling, I can rate Ertiga > Crysta > Marazzo. I am saying this even after owning the Crysta. The Crysta provides a better ride quality at higher speeds but the handling of the Ertiga is close to as sharp as a sedan. And I am not talking about 90kmph high speeds. Marazzo and Xylo of course had very good ride comfort at city speeds, but beyond that it was a boat. I havent drive Xylo but been a passenger. Marazzo was much better than Xylo, but nowhere close to the competition.

I think the biggest mistake was to put a ladder frame in what was meant to be a monocoque car and Mahindra got brickbats to it. Of course, it sounds offensive for owners, but thats what the current situation is like.
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Old 26th January 2022, 15:38   #30
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Re: How Maruti cracked the Compact MPV code with the 2nd-gen Ertiga & XL6

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Originally Posted by theAutomaniac View Post
A pretty well written post. The Maruti Ertiga has to be one of the most successful brands and not without a reason. Here's why I think the Ertiga has become what it is today-

1. No alternatives- When the 1st gen launched, people still had choices like the Xylo, BRV, Mobilio, Lodgy etc but since the past 3-4 years, there are literally no alternatives except the Marazzo which is still expensive by a few lakhs.

2. Innova- For Maruti, nothing worked better than the Innova getting expensive exponentially. If the Innova was cheaper by a few lakhs or even had a variant priced at around 12-13 lakhs, the Ertiga's growth rate would've been much lower. Many Ertiga buyers are fleet buyers who used to be Innova customers but got the Ertiga just because Innova was double the price!

3. XL6- The XL6 was honestly a very clever way of getting SUV customers to their showrooms when the brand's actual SUV, the S-Cross failed to do so miserably! Shocking how MS invested just 100cr in the XL6 and yet it is a bigger success than the ground up developed S-Cross.
If Maruti manages to plonk features like sunroof, paddle shifters, 9 inch touchscreen etc in the 2022 XL6 facelift, I bet the XL6 might as well eventually outsell the Seltos and German duos (combined)!

4. Compact SUVs- Compact SUVs like the Sonet, Venue, Nexon etc are are tiny little cars for big money like 14-15 lakhs. While these cars surely are selling well I bet these also gave customers to the Ertiga because the Ertiga gives that 'badi gaadi' feel at a price cheaper than these cars.

5. Right product, at the right time- With customers moving to more expensive cars, the 2nd gen Ertiga came at the perfect time (2018, no competition and no tech savvy cars either), with the right size (badi gaadi at chhota price), a right product management team and a perfect brand name (the Ertiga brand name too had considerable respect by then).
Agreed. I never liked the first gen ertiga's looks, and the rear looked especially ugly(imo), but the second gen ertiga had that 'wow' factor, and the 'badi gaadi' feel to it. It looks like a macho SUV from the front, volvo-ish from the rear and surprisingly the side profile is also quite attractive. They included much needed features like an updated MID, touchscreen infotainment system with Android auto and apple carplay, keyless entry and such. There's literally no competition for the ertiga even without a diesel because it combines features, maruti peace of mind, reliability, looks and the performance is fine too.
I'd much rather prefer to get an ertiga/XL6 now instead of "compact" compact SUV's like the sonet, punch and venue, much more space on offer and again, the 'badi gaadi' feel is necessary when you're spending north of 10 lakhs OTR(imo, no offence to owners of these cars).

Toyota raised the prices of the Innova keeping the inflation and increasing average salaries of customers in mind, but they forgot about those whose salaries remained largely stagnant/ slowly incremented over the past few years. These customers then started looking elsewhere, and with the launch of the crysta i believe they got pushed even more towards the other good alternatives (i.e. ertiga). The marazzo was a good product imo and had good features and looks but it failed in one aspect which customers wanted the most from an ertiga(1st gen) - increased space. Instead, there was even lesser space on offer and the seating positions were less than ideal, plus at that price it also faced competition from lower variants of the Scorpio, which has a much larger brand value/ recognition in India.

And the XL6, i honestly didn't expect it to make many sales due to being it being sold from nexa, when their s-cross failed and especially since the ertiga was more VFM and cheaper too. But i guess at the end of the day there are customers at that price point too who look for a more premium experience while buying an MPV, which i believe is the key factor in driving it's sales. If it gets features like the creta twins it'll be the next bestseller( both combined), probably even defeating the Alto and Swift. Someone who wants more space but is on a budget will definitely have a look at the ertiga and the swift side by side in the maruti showroom and seeing the prices, they're most likely to go for the ertiga .
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