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Maruti Suzuki Models Losing Market Share
The Wagon R which enjoyed a market share of 12.55 per cent in 2009-10 saw its share drop steeply to 10.55 per cent in 2010-11. According to data from the Society of Indian Automobile Manufacturers Maruti Suzuki's models such as the A-star, Ritz, Swift and Zen Estillo have lost market share last year.
The A-star's market share fell from 2.7 per cent to 2.39 per cent. The Swift saw its market share drop from 9.74 per cent to 9.11 per cent. The Maruti Suzuki Ritz which previously enjoyed a market share of 5.29 per cent fell to just 4.45 per cent. The Maruti 800, now sold only in select cities also saw its market share drop.
Maruti Suzuki when asked about the drop in market share has indicated at the capacity constraints as the reason. It said it could not build as many cars as the market demanded and hence it lost some sales. Further the company said the Zen Estillo and the Wagon R could have lost market share due to internal competition from the Alto, especially the more powerful Alto K10.
Analysts are of the opinion that competition is finally catching up with Maruti Suzuki. The carmaker has more than half of the Indian car market. With India emerging s the world's fastest growing car market, global auto majors have increased their presence in India. Several of them are offering cars that are direct competition to Maruti Suzuki's models. The Alto, which has had a great sales run so far can also expect stiff competition as Volkswagen, Skoda, Renault and Toyota are considering to build a hatchback within the price range of Rs.3 lakhs.
Analysts also say Maruti Suzuki's models are not very different from each other and believe the lack of variety is costing the carmaker dearly. Maruti Suzuki is of the opinion that having several models in the fastest growing segments had helped it boost sales and it would continue with this strategy.
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