Maruti Ertiga To Be Launched Soon After Budget

Published: Friday, March 2, 2012, 13:24 [IST]

Maruti Suzuki's foray in to the MPV segment has been slightly delayed. The Indian carmaker which was expected to launch its Ertiga MPV in the market during the first week of March has decided to delay the launch by a few weeks as it feels it needs to get a clear idea of the government's policy towards diesel engine cars.

The central government is reportedly planing to impose a higher tax on diesel engines and also increase VAT on cars by an additional 2%. The VAT will make all cars in India more expensive. But the worrying aspect for Maruti Suzuki is the additional tax on diesel engines. This will further increase the price divide between petrol and diesel cars much against the market switch towards diesel cars.

The Maruti Suzuki Ertiga is the carmaker's first MPV with a diesel option. The diesel variant is expected to be the highest selling variant considering the current demand for diesel cars. If the central government does impose higher taxes on diesel cars, Maruti Suzuki has to think about its pricing strategy.

The Ertiga MPV has the potential to become a major player in the segment if its price is right. But Maruti Suzuki is still not ready to take the plunge considering the government is yet to spell out a clear cut policy on diesel cars. The Ertiga's launch can only be expected during the third or fourth week of march. The Ertiga is a versatile MPV available as a five seater as well as a seven seater.

The MPV was unveiled at the 2012 Delhi Auto Expo and has received very well by the public.