Introduction
Maruti Suzuki India Limited has ruled the Indian car market since long. It still accounts for more than two-third of the car sales in India – or: every second car sold in the country is a Maruti. With the change in economic scenario especially after The Recession 2008, global automakers had started looking for newer shores to sell their products. Emerging markets posed the apt opportunity for them to sell their products especially in India, China, Brazil and Russia, as a result of which the competition for many local companies is set to increase.
With the new fiscal year just started, let’s take a look at what India’s leading auto company, Maruti Suzuki, is planning.
Overview of Indian Market
The Indian market remains mainly a small car market. Although there has been a rise in sales of sedans and especially SUVs, still the lucrative car segment remains the compact cars and hatchback models. It is also the market that drives volumes, thus allowing manufacturers to attain a level of volume needed to have a good dealership presence.
New entrants to the small car market like Tata Motors, Volkswagen, and Ford have now flooded the market to tap the potential. Nissan’s Micra, Honda Small car, Toyota Etios, Renault Twingo or Clio are other launches lined up to 2012. Suzuki Chairman, Osama Suzuki, had already commented that 2010 is going to be a tough year for Maruti Suzuki in India.
Is Maruti Sitting Back and Brooding?
Not at all! MSIL is planning its actions in full swing. It had realised the impact of new small car entrants since last year when other car makers have been announcing their future launches. Some new initiatives which it has taken include the Maruti A-Star and Maruti Ritz as the brand new models in 2009 which carried the new generation K-series engine.
Maruti Ritz: 
The A-Star was an instant success as it met the demand of the new world which asked for small cars with fuel efficient engines and greener technology. Maruti Ritz was next in the league which flaunted yet another compact car design and delivered mileage of 18-19 kmpl. Even on the city roads, Maruti A-Star and Maruti Ritz delivered mileage of 17 kmpl. What could have been better for the Indian customers?
Maruti A-Star: 
MSIL has also upgraded its models SX4 and Swift Dzire and made them compliant with the new emission BS IV norms. Also, countering the above trends, Maruti has also started phasing out M800 from the Indian model as its engine is not compliant with the new norms. Maruti Suzuki is ready to introduce replacement of M800 in the Indian market. It has already introduced Suzuki Cervo in the Japanese market and the model is extremely successful. MSIL may bring the model to Indian shores by end of this year.
Maruti SX4: 
Moreover, Maruti is now promoting the Alto as its flagship model. It already sells more than 20,000 units per month of Maruti Alto in India, and a new Alto is ready to hit the showrooms shortly. The new model does not have any changes in the exteriors but the inside seats have been changed and now come with integrated headrests. The price of the model remains unchanged even after the new engine and falls in the price bracket of Rs. 2.2 lakh – Rs. 2.7 lakh.
Maruti has also prepared an update of its ever-strong Wagon R, in line with the market demand. The model does not only carry the new K10 series engine but wil also be launched with new cosmetic changes. The new Wagon R model will be launched in the Indian market on April 23, 2010.It has been developed in an all-new platform, and MSIL has invested Rs. 290 crores to upgrade the model. Apart from this, the Maruti vendors have also upgraded their units to deliver newer components for the car. The new Wagon R will deliver 65PS power and a mileage of 18.5kmpl, says Maruti. MSIL has also stopped producing petrol-LPG ‘Duo’ model of Wagon R.
Maruti Wagon R: 
Lastly, Maruti may not have had a very strong presence in the sedan segment but that does not make it hold back its plans to re-invent its products. The brand new Suzuki Kizashi is ready to be launched in India in December 2010. It will be imported as a completely built unit which may make it pricier. The model has already been successful in Japan and the US market and it should allow Maruti to enter the higher level sedan segment.
Maruti Kizashi: 
Maruti’s R&D in India
If that’s not all, Maruti Suzuki has set up a world-class research and development unit in Gurgaon. The company will launch a completely “made-in-India” car by 2012. MSIL has recruited around 1000 auto engineers who will introduce a car that has been exclusively conceptualised, designed and developed in India and according to the Indian customers. That car will be one of the major feats to await from Maruti.
Maruti 800: 
Conclusion
Maruti is not sitting back and letting other take charge. Maruti’s brand remains ever strong and for many Indian consumers it remains the first choice.
The company models have a good re-sale value which makes them a good buy. Indian customers are extremely price sensitive and definitely consider the resale value while making their purchase. Moreover, the extensive dealer network and service network ensure that it is a safe buy.
If Maruti continues to re-invent its products according Indian tastes, it will be difficult for newer models to penetrate deeper into the market. So far only Hyundai had been the only one to grab a good amount of market share from Maruti but others still need to think of their strategies to keep up with the brand name called MARUTI.
