Maruti Suzuki India is all set to replace two of its top selling models – M800 and Alto – by Diwali 2012 and Suzuki Cervo seems to be the likeliest successor of the two. However, there is no official confirmation in this regard, though the auto industry of India is waiting with bated breath to see which new game changer will be introduced by the company after Ertiga. At the time of its launch, the Cervo will be pitted against the likes of Hyundai Eon, Chevrolet Spark, Bajaj RE 60 and Tata Nano. However, this gives rise to questions about the segment that the company will target with this car.
For a long time, Hyundai has been gaining from strength to strength in the domestic market and slowly but steadily inching towards Maruti Suzuki's position as the biggest car maker of the country. Its Eon has done well since its launch in 2011, though it did not turn out to be the revolutionary car that it was supposed to be. However, when Maruti Suzuki finalises the exit of M800 and Alto, it will have to present an excellent competitor against this vehicle to the Indian buyers. Expected to be priced around Rs. 2 to 2.5 lacs, the upcoming Cervo will also square off against Chevrolet Spark, which is also a good car, though its name is not taken as frequently in the market as Eon or Alto's.
Notably, Maruti Suzuki is not just eyeing the A2 segment with the replacement model for its 800 cc cars in India. The Cervo sold in the international market is available as a Kie car, which are traditionally equipped with 600 cc engines. With such an engine configuration, the car may be positioned in the ultra small car segment of the domestic auto industry, which currently has only Tata Nano. The sales of Tata Nano scaled the 10,000 units mark in March 2012, which raised the manufacturer's hopes. However, the sales volumes eventually came down by 20 per cent in the following month to settle at 8,028 units. These figures prove that there is immense potential in the segment, even though the buyers have only one option as of now.
Fortunately, Maruti Suzuki has the experience of Tata Nano on its side, as the whole industry saw the debacles that plagued the sales of the car since its launch in 2009. It is a well known fact that the lack of features has made buyers feel the need of an alternate model in the segment, forcing Tata Motors to launch an upgraded version of the car in 2011. Safety concerns also affected the sales prospects of the world's cheapest car as there were many reports of Nanos catching fire spontaneously. Therefore, Maruti Suzuki will have to make sure that the Cervo addresses these concerns while rolling it out in the country.
Bajaj is also expected to launch its first passenger vehicle, called RE 60, in 2012, which will run on a small 200 cc water cooled engine. Though it will be priced close to Rs. 1 lac as opposed to Cervo's price tag of Rs. 2 to 2.5 lacs, it is expected that there will be comparisons between the two. However, Maruti Suzuki will probably not be too concerned about this car.
Thus, it can be justified that the company will bring forth a 600 cc car that comes with a host of class-defining features and sufficient power, since Indian consumers are ready to pay extra for a quality product.
