Friday, August 08, 2008

Japanese Maruti and indian suzuki?

From a high of above 90%, Maruti’s market shares are now down to the mid 40s. Is Suzuki focused more on making Maruti a globally selling company? Has Suzuki decided to relegate the ‘Maruti’ brand – and India sales – to a second tier? In the rarest inside scoop, Karan Meherishi of 4Ps B&M meets all top brass at Maruti for a spectacular analysis...

On a tangential but as important a front, Maruti products lack the novelty factor which Hyundai and Tata Motors use quite successfully. Hyundai markets its cars as being exclusively for India. The i10, as well as other models, have been successfully branded through the ‘India first – the world later’ strategy. No Maruti product has ever been exclusively marketed solely for India. Here is where the concept A-Star enters, but more on that in later pages. Then, of course, is the threat from Tata’s supposed Rs.1 lac car, which according to market reports, will be marketed as ‘For India, By Indians’. The Tata car will also be sporting a diesel engine like its sibling Indica; clearly a direct threat to Maruti, more so because of the diesel premise. The Maruti top brass has been documented as having termed Tata’s small car ‘impractical’. Though I might agree, what if the Tata car does work out against all odds? Does Maruti have a Plan B that provides it flexibility to include further low-cost variants in its portfolio in case of a future fallout? Would it wish to include more diesel cars? I couldn’t get a clue...

When I got through to R.C. Bhargava, Chairman, Maruti Suzuki, and questioned him on whether Maruti has/will have an increased diesel focus, he did comment exclusively to me, “We do have diesels in our portfolio, like the one which comes with the Swift. And now, since we have our own manufacturing plant, we may consider including more diesels in our portfolio.”

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Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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