Car makers coming up with new vehicles, placed in new segments

It looks like that car makers are set to boost LUV segment in the auto industry. Ssangyong Motor, a South Korean automaker completely owned by Mahindra, launched its Actyon Sports, a 'Leisure Utility Vehicle', on 12th January 2012. Following with league, Maruti Suzuki recently introduced its Ertiga, a 'Life Utility Vehicle', on 12th April 2012. Both of these LUVs signify the debut of their companies in the LUV segment of the auto sector.

With these launches, the car makers are eyeing new segments in the formerly pullulated auto market and thus, making a difference from other car makers in the same industry to lure buyers.

At the time when, Lee Yoo-il, President and CEO, Ssangyong Motor Company (SMC) introduced ‘Actyon Sports’, the company expressed the car as first LUV (Leisure Utility Vehicle) of South Korea. However, the design of ‘Actyon Sports’ is quite similar to a pick-up vehicle.

Presenting as ‘the perfect vehicle for outdoor life’, SMC mentioned, “Considering the dramatic increase in outdoor and extreme sports population, 'Actyon Sports' proactively responded to the needs of the customers who enjoy leisure activities”. Commenting upon the car, Yoo -il said, “it is the new flagship model of Ssangyong Motor that will expand the scope of automotive culture and bring a new sensation to the Korean automotive market.”

On the measures of debt, it was fairly struggling for SMC till Mahindra & Mahindra (M&M) held the possession over company in 2011. However, it is quite astonishing that SMC played big over its launch of 'LUV'. Thereafter, Lee Yoo-il said, “Actyon Sports will play an important role as a driving force to achieve 2012 sales target and get Ssangyong Motor back on track.”

In the auto market of India, Maruti Suzuki India Limited (MSIL), India’s largest car maker, is required to find new ways to keep its notch top in the market. It must be noted that the market share of MSIL in passenger vehicles segment, which marked at 26.18 lacs vehicles, slipped to 38.44 per cent during the previous fiscal.

Thereafter in order to consolidate its presence, the company came up with its new LUV (Life Utility Vehicle), Ertiga. At the launch of this car, the company released a statement that said, “Ertiga strengthens the product portfolio of the market leader and also creates an all new Life Utility segment...”

Mentioning the need of company to introduce a LUV, Shinzo Nakanishi, Managing Director and CEO, MSIL, said, “Many urban families in India are now looking for a vehicle that offers more space and flexibility than a sedan, without being bulky, bland and expensive like a utility vehicle.”

Before the launch of Ertiga, such families were compromising for comforts as well as luxury and settling with a car that does not remain parallel with their requirements. However in order to compete with Ertiga, Pawan Goenka, President (Automotive and Farm Equipment Sectors), M&M, stated that the company is currently no mood to introduce its LUV in India.