The largest car maker in the country, Maruti Suzuki, is looking to gain market share in the low-cost car segment in the country with 'Cervo'. The car maker is attempting to replace its epic Maruti 800cc with this new model, which is expected to be released by Diwali. It may price the upcoming car in the range of Rs. 2 to 2.5 lacs, filling the gap between the Alto and Maruti 800cc.
According to reports, the new model will look like the amalgamation of Chevrolet Beat and Honda Jazz. With identical dashboard (notably the rectangular air vents in the centre and circular ones on the sides), Cervo's cockpit looks mostly like Swift's. Targeting the youth, which seeks a combination of looks and performance in a vehicle, Cervo comes with new-generation sporty look. With this new car, the company will compete directly with Tata Nano and Hyundai Eon in the small car segment.
The powertrain under its hood is built by Suzuki and capable of delivering 60 bhp of power and 64 Nm of torque. It may get Variable Valve Timing (VVT) feature in all likelihood, which will further enhance its fuel efficiency. Minimum power loss, higher fuel efficiency and lower carbon emissions are guaranteed by the VVT technology. Maruti may introduce the car with both 4-speed manual and automatic transmission options, since there is a growing demand for automatic transmission.
It is expected that a strong performance and latest performance boosting features will be the key characteristics of the model. The mileage delivered by Cervo is expected to be in the range of 20 to 24 kmpl. Its cutting-edge automatic transmission system will ensure a smooth handling in India's ever-growing city traffic. The car will be able to touch 100 kmph from standstill in 25 seconds and clock top speed of 115 kmph.
Talking about the competition, Maruti is planning to pit the Cervo against the Hyundai Eon and Tata Nano. The South Korean company has been gaining market space in India steadily and posing a threat to the position of country's largest car manufacturer. Eon has done well in terms of sales since its launch 2011. The South Korean car maker has claimed that it will soon take up most of the sales in its segment, which also includes Alto. As a replacement to iconic Maruti 800 and top selling Alto, Cervo will also take on Chevrolet Spark which is a good car as well, but quite dated.
However, the company is eyeing not only the hatchback segment, since the global Cervo features a 600 cc unit. This configuration of the model places it in ultra small car segment with only Nano as a competitor. Tata Motors had high hopes with the people's car, which touched sales of more than 10,000 vehicles in March 2012. As the sales contracted by 20 per cent, it sheds light on the fact that consumers seek other, better options, which underlines that there is high scope for the Maruti Cervo in this segment even with a single competitor.
Maruti Suzuki would do well by keeping in mind the mistakes of Tata Nano while developing the Cervo. Tata motors had to launch an upgraded model of the Nano to comprehend the need for features in the car. With only other option in the segment being Nano, Cervo with its contemporary looks and exciting features along with affordable price tag may succeed in luring the price sensitive class of the customers and improve the manufacturers' sales volumes in India.
