Maruti Ertiga, Swift Dzire and Mahindra XUV 500 remain unfazed amidst the turbulence
Subscribe to NewsletterPlease fill your name and email ID to get our daily auto news mailer.
Maruti Suzuki Ertiga, Swift Dzire and Mahindra XUV 500 have been successfully defying the gravity of the downward slope in the automotive industry of India to enjoy unmatchable success. This can be mainly attributed to their affordable price tags, coupled with better mileage and convenience that is typical of Utility Vehicles (UVs). They make up an interesting success story especially, when majority of the auto dealers in the market have been offering massive discounts on their cars to attract customers in wake of the sluggish market.
The aforementioned cars have been performing well and are in demand, especially their diesel variants despite the slowdown in the market. To be precise, these cars have been commanding a waiting period of three to six months and the customers are willing to comply as well. In contrast, other leading manufacturers of diesel cars have been adjusting their production capacity to manage the inventories.
A senior analyst in Asian Market Securities, Abhishek Banerjee, said, “Vehicles like Mahindra’s XUV 500, Maruti Suzuki’s Ertiga, DZire has fetched good volumes for the companies. In the passenger vehicle segment, it is very clear that the new products are influencing the market dynamics.”
Ertiga, the first Multi Purpose Vehicle (MPV) in Maruti Suzuki's portfolio, was launched in April 2012 in the country with a starting price tag of Rs. 5.89 lacs. The new car brought home the title of third largest UV maker for its manufacturer within two months of its launch, which is quite a feat for a new launch. It has already sold 17,700 units since its release and now the company is planning to sell 70,000 Ertigas a year. The sales volume of Swift Dzire was not far behind with a five fold growth to 13,741 units in June, 2012. This growth, which was mainly due to its diesel variant, is a significant advantage over 2,486 units sold in the same month of 2011.
XUV 500, a compact Sports Utility Vehicle (SUV) from the stables of Mahindra & Mahindra (M&M) bagged 9,200 bookings since its national launch. The SUV comes with an attractive initial price tag of Rs. 11.5 lacs, for a car of its calibre. XUV 500 enjoyed popularity of such magnitude that its nine month production stock was sold within a period of just a month since its launch. This led M&M to take a decision regarding the monthly production capacity of the new SUV, which will now be increased to 5,000 units by September-October.
Senior Director, Automotive Practice, Frost And Sullivan, V.G. Ramakrishnan, said, “The XUV 500′s design is good and pricing a killer…it’s the only SUV at that price point. With that pricing you bought in a new set of customers who wanted to buy into a new segment.”
However, other car manufacturers are catching up fast with Renault India launching its Duster, a mid-size SUV with competitive price tags ranging between Rs. 7.19-11.29 lacs across its different variants. Ford Motors is also gearing up to launch its EcoSport to square off against Ertiga and Toyota Innova. An affordable UV is in pipeline from Nissan, to be launched later in 2012. All of these car makers are aiming at a larger share of the fast growing UV market in India. The widening gap in the prices of diesel and petrol is the major reason behind the shift of market sentiment towards diesel-run SUVs. It would be interesting to watch how the industry turns out once the new launches have made their début.
- Tata Nano expected to be introduced with power steering
- Hyundai and Maruti Suzuki to increase prices from 2014
- Honda to continue excellent performance in 2014
- Mercedes-Benz AMG cars gaining popularity in India
- Sales of Hyundai Grand i10 cross 33000 units in three months
- Next generation Honda City: A truly stylish sedan
- Mercedes-Benz set to hike prices in January 2014
- Tata Nano declared as Most Trusted Brand in India Study 2013
02 December 2013, 12:21 IST by CarTrade Editorial Team
As 2013 is coming to an end, many car makers would want to forget the dismal performance of this year in terms of sales and profit levels. In the passenger car segment, many companies failed to...
02 December 2013, 12:45 IST by CarTrade Editorial Team
In a shocking news that sent ripples across the American film fraternity, it was leant that Paul Walker has passed way in a car accident that occurred in Southern California. Reportedly, the actor...
05 December 2013, 12:22 IST by CarTrade Editorial Team
According to recent reports, Honda Cars India Limited (HCIL) will increase price of its entire line-up from January first week in 2014. This is mainly to counter the booming inflation and...
04 December 2013, 11:55 IST by CarTrade Editorial Team
As the 2014 Auto Expo is fast approaching, the Indian car market is abuzz with presumptions about models that will be on display at the upcoming motor show. Major car companies like Maruti Suzuki,...