[Steeroid]

Originally Posted by condor

Also from the same article:
"Says the Maruti official: "We will keep our car at a premium of Rs 35-40,000 to the Tata product."

Assuming that Tata have milked the Indica well enough by then, would they second-guess Maruti by dropping the Indica to Alto levels since there would be a 'New Indica' in the market by then? Its the Alto and not the 800 which is Maruti's breadwinner now.

IMHO Maruti would be making a tactical error if they start considering Tata as their real rivals - while they are busy fighting the fictional devil for their bread, others like Hyundai and maybe Honda will end up eating the cream off of their plate with better A+ and B segment hatchbacks.

[condor]

The Alto already has the Xeta for competition - a 20K difference in ex-showroom prices. Close enough to have people consider the Xeta.

Also, with a 700cc engine, the 1-lakh car comes close to the 800 [better in terms of power, and possibly close in FE], and without a M/T. Couple of points where it can score over the 800. After 20 years of launch, Maruti can afford to drop the price further without burning a hole through their pockets. Till then, the extra margins for Maruti will continue to be welcome.

Waiting for the covers to be taken off this one.

[wolfinstein]

The only reason how maruti does offer cheaper base entry car like 800 cheap is because their investment into machines and plants to manufacture have already been depriciated beyond the age..! So they claim 100% dep and thereby reduce the total cost to produce the cars on their existing plants and machines.

About the The attitude of maruti, something is seriously wrong with them , firstly the upgrade to the baleno is long overdue, they kept on sleeping on it for 2 years. When all the other manufacturers are moving to CNG green fuel Systems Maruti plays the lone beliver of LPG based systems, since maruti is having no success with CNG systems for example the CNG Omni which bombed and now all Maruti has is LPG omni and Wagon R LPG.
For the last few years Maruti has become a back bencher in the race to launch new models, Last of which was the Swift..!

Wake up maruti before TATA/Hyundai/GM all crush you..!

[condor]

OT:
Wolf, reg Maruti's attitute - Maruti doesnt design any of it's cars in-house. AFAIK, all their models came in from Suzuki, when these - as Suzuki models - were old. One exception is the Swift. Guess the new Baleno would follow the Swift's path by coming in on the heels of it's launch elsewhere. But still means that Maruti has to wait till Suzuki gives it to them.

IMO, Maruti did more than that to the Baleno - if they had priced the Baleno well, it would have been much more popular.

[THE-U-]

Originally Posted by condor

http://timesofindia.indiatimes.com/a...ow/1937710.cms
"An auto expert points out that Maruti 800 for free on board export is priced at $2600 (Rs 117,000) but costs around $2000 (Rs 90,000) to make."

Did Maruti folks say that a 1 lakh car is not possible?

You do realize that Rs.90,000 is the raw cost of the car, right? One needs to add all the other overheads (marketing etc.) to come up with the final price.

Its often said that most of the GM/Chrysler/Ford cars made in the US carry a hefty $3-4000 per car due to pension benefits etc. to their retirees. While these cars are generally cheaper than their Japanes competition, one doesn't see very many cutting edge features except in the higher end cars. You've got to make money somewhere!

[rahul_intlad]

Maruti is active in its own way.Facelifts form an important part of maruti stategy.This has been successful for them till now.Only now people are moving away from the zen,esteem etc.
So maruti too has changed its strategy it appears.

new developments taking place like
Zen to replaced by new model,Baleno rumoured to be replaced by new model


Something really unheard of in case of maruti to discontinue a model.

[condor]

Originally Posted by THE-U-

You do realize that Rs.90,000 is the raw cost of the car, right? One needs to add all the other overheads (marketing etc.) to come up with the final price.

Sir, you do realize that the words in quotes were not said by me, right?

While the price & profitability gap between the US big 3 & the Japanese car makers is not the topic of this particular thread, here's something for your reference:
http://indiacar.net/news/n41350.htm
"Harbour study investigates causes of $2400 p/u profitability gap between US Big Three and Japanese transplant manufacturers"

[esteem_lover]

Originally Posted by condor

Sir, you do realize that the words in quotes were not said by me, right?

While the price & profitability gap between the US big 3 & the Japanese car makers is not the topic of this particular thread, here's something for your reference:
http://indiacar.net/news/n41350.htm
"Harbour study investigates causes of $2400 p/u profitability gap between US Big Three and Japanese transplant manufacturers"

yeah, i know that price to be true, condor. in fact, i know that hyundai ships their base accent for as low as 1.6 lakhs for exports. i have personally seen the papers.

[V-16]

I dont know about u guys but im gonna go and get this car when its launched...

[THE-U-]

Not to be picking on you, Condor, I must've clipped the wrong portion of that post. Didn't you write the following?

Originally Posted by condor

Did Maruti folks say that a 1 lakh car is not possible?

Well, on topic, some one reminded me that we used to have "Dolphin" and "Montana" that were costing about Rs.60000 ex-show room in the late 80s and early 90s with Fiberglass panel doors etc. Clearly, one gets what one pays for that was also the gist of my previous post.

[condor]

That's where it is getting intresting - IIRC, Maruti and industry experts were quoted in the media as saying 1-lakh is not possible. With the 800's base export price at 1.17, and Santro at 1.65L, we could after all see a 1L car from Tata.

Thinking of the status of roads if this car gets popular, and successful ....

[esteem_lover]

Originally Posted by condor

http://timesofindia.indiatimes.com/a...ow/1937710.cms
"An auto expert points out that Maruti 800 for free on board export is priced at $2600 (Rs 117,000) but costs around $2000 (Rs 90,000) to make."

Also from the same article:
"Says the Maruti official: "We will keep our car at a premium of Rs 35-40,000 to the Tata product." "

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killjoy, any luck with the pics?

do you think maruti would want to sell at cost price ? or at a whooping margin of Rs.1,001 ? cmon man, they are dealing with cars & not vegetables. so you can imagine what would be the production cost of the TATA 1 lakh car. cheers

[condor]

Another update:

http://business-standard.com/common/...N&autono=17372

"It will be impossible to offer the product at that price, as the costs of almost all inputs have increased significantly over the last couple of years before which the plan for the car was announced," Ravi Kant said.

Inflation seems to have caught up with Tata's plans.

[vishwas]

Attached is an excerpt of Ratan Tata's interview to McKinsey Quarterly. It outlines some very interesting ideas in the business model for making this 1Lakh car viable. http://www.mckinseyquarterly.com/art...r.aspx?ar=1688

"In addition - this again touches on the social dimension- we're looking at small satellite units, with very low breakeven points, where some of the cars could be assembled, sold and serviced. ...encourage local entrepreneurs to invest in these units, train them to assemble the fully/semi knocked-down components and they would also sell the assembled vehicles and arrange for servicing. This approach would replace the dealer, and therefore the dealer's margin, with an assembly-cum-retail operation that would be combined with very low-cost service facilities..."

See the image for Tata's full response on the car.

[sathya_g_m]

If Tata can sell a car like Xeta at Altos price, Cant they sell a car like M800 at 1-1.25 Lakhs?