Maruti scores a big win with Ertiga; 11,000 bookings in five days

Maruti Suzuki India Limited (MSIL), the country’s largest auto maker, introduced its first offering, Ertiga, in compact Multi Purpose Vehicle (MPV) segment of the Indian auto industry. The car was launched on 12th April 2012 with a price tag of Rs. 5.89 lacs. After few days of its launch, the advanced bookings of Ertiga received by the company are more than 11,000 units, which is fairly impressive. Despite a compact MPV, the company refer its Ertiga as a LUV (Life Utility Vehicle).

The company introduced its Ertiga in lieu of regaining its lost share in the Indian auto market. Presently, the company owns a share of 39 per cent in the industry, which is its lowest ever. Since the company has created dominance in the hatchback segment for almost 2 decades, it is eyeing new potential segments for further growth. Owing to this, the company made its foray in the MPV segment so that they can even expand their product portfolio.

Booming Utility Vehicle (UV) sector of the Indian auto industry has recorded a growth of 14 per cent and thus, MSIL has also come-up with its new car in this segment. Currently this segment is ruled by the Toyota Innova and Mahindra Xylo. Xylo costs around the price range from Rs. 7.30 lacs to Rs. 10 lacs, whereas Innova is tagged between the range of Rs. 8.5 lacs and Rs. 12 lacs. Both Xylo and Innova are not offered in the petrol engines, while Ertiga is available in three trim petrol versions. Considering its price range, the diesel variant of Ertiga is provided within a range of Rs. 7.30 lacs to Rs. 8.45 lacs (all prices are ex-showroom, New Delhi).

In its history, Maruti Suzuki never contended for this 14 per cent share in the auto market. But now, the company aims to grab a large share in this segment and further increase its overall share in India’s car market. During this year, the company aims to sell around 70,000 units of Ertiga, which will be much lucrative for the company.

All the official dealerships of Maruti Suzuki in India are accepting bookings of Ertiga. The buyers who are interested in owing an Ertiga are required to just pay a nominal amount of Rs. 50,000. It is speculated that the company will start Ertiga’s delivery within couple of months. As Maruti Suzuki announced the 11,000 advanced bookings of Ertiga, its prices of its shares also increased. At 11:40 AM, the share of Maruti Suzuki on Bombay Stock Exchange was floating high at Rs. 1,389.90, which showed a growth of 3 per cent.