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Maruti Aims At 50% Market Share Through Ertiga
Maruti Suzuki India, the country's leading carmaker is looking at its recently launched MPV Ertiga as a game changer. The Ertiga has had a great run in the market within the first week of its launch. Reports say it has already received about 10,000 bookings
The carmaker has now stated that the Ertiga will help it regain a 50% market share in the Indian car market in a few years. Maruti Suzuki's market share dipped dramatically in the last few years after the arrival of new competitors and the huge increase in diesel powered cars. The demand for MPVs and SUVs has also increased in this period, segments where Maruti did not have a single model until the launch of the Ertiga.
The Ertiga has been priced well with a starting price of under Rs. 6 lakhs in Delhi. The Ertiga's on road price is between Rs.6.5 lakhs and Rs.9.4 lakhs. This price is very competitive when compared with what could be the Ertiga's competitors such as the Mahindra Xylo, Toyota Innova, Chevrolet Tavera and the Tata Aria.
Maruti Suzuki does not believe it has entered a segment that has too much competition. In fact, Maruti Suzuki's Managing Executive Officer Mayank Pareek is of the opinion that the Ertiga has in fact created a new segment. He was speaking during the launch of the Ertiga in Bangalore.
If Maruti Suzuki is able to boost its sales at a greater proportion compared to competitors, it will definitely increase its market share from the existing 39%. Although this number by itself appears formidable, Maruti Suzuki had once enjoyed a market share greater than 60% in the early nineties.
It can be said that Maruti Suzuki was slow to respond to the changing customer preference towards diesel cars and larger cars. The arrival of the Ertiga, the unveiling of the XA Alpha concept SUV and the increase in production of diesel cars at Maruti Suzuki's Gurgaon plant is a clear indication that Maruti Suzuki has begun an aggressive push towards regaining its market share.
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