Why Maruti Suzuki is actually so dominant in India

Saturday, November 12th, 2016 - autos, cars, motoring, news

Source : Why Maruti Suzuki is actually so dominant in India

Maruti Suzuki The any features a 52% market share within the country, nevertheless what is actually the secret behind its success?

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Maruti Suzuki’s dominance in India is actually formidable.

The subsidiary of Japanese any Suzuki enjoys a 52% market share within the country, which features a population of more than a billion people. The company is actually aiming to have a garage or dealership every 17 miles.

There are around 3000 dealers in India already, some servicing 250 cars a day, as well as the any estimates that will that will builds a brand new car every 16 seconds.

Its success compared to the standings within the European market puts things in context. The biggest chunk of the market on the continent belongs to the Volkswagen Group as well as its subsidiaries, which had a 24.9% share of all brand new car registrations through January to September 2015 (albeit before the damaging revelations of the emissions scandal).

nevertheless why does Maruti Suzuki – who’s parent company can only claim a meagre market share of 1.3% in Europe – have such a staggering portion of the Indian market?

within the early days of mass production cars in India that will was exclusively limited to a few local manufacturers, nevertheless within the 1980s foreign firms were eventually allowed to invest within the Indian market, leading to the alliance between Japanese Suzuki as well as Indian Maruti.

Maruti Suzuki was the first as well as most successful multinational car any in India, as well as that will wasn’t until 1991, when India began to further liberalise the automotive market, that will that will faced any real competition through foreign firms.

So by the time any rivals came on the scene, Maruti Suzuki was already well established on Indian soil, with cars like the Maruti 800 dominating the market.

The reason the firm was so well-known then, as well as remains so well-known currently, is actually also down to how well-suited its line-up is actually to the market.

Suzuki may be eyeing up crossover conquests abroad with the brand new Vitara as well as SX4 S-Cross, nevertheless Maruti Suzuki remains largely focused on its values as a cheap as well as cheerful little hatchback any, although tentative steps into the more premium sector have been taken recently.

Its extensive little car range includes the Swift, Celerio, Wagon R as well as Alto. The Baleno has just joined its ranks, too, becoming the sixth best-selling car within the country during its November 2015 launch as well as the first car the company will make in India as well as sell globally. that will’s not resting on its laurels, either. The Ignis, based on the iM-4 concept, is actually on its way too, having a launch reportedly set for the end of 2016.

The any has also embraced development around India’s car tax laws to further establish its grip on the market. Cars more than four-metres long have to pay yet another tax rate, which doesn’t trouble Maruti Suzuki’s little hatchbacks as well as saloons, as well as cars that will are built in India don’t have to pay import tax, which gives them an advantage over additional rivals built abroad. There’s also a great interest through buyers in locally built cars as opposed to foreign rivals, which helps sales further.

Maybe the most important factor, though, is actually the cheap cost range. While India recently overtook China in having the entire world’s fastest-growing big economy, buying a brand new car is actually something only a little proportion of the population can afford. as well as people buy with confidence within the revered brand thanks its vast number of garages as well as dealerships, which have helped build a reputation for reliability as well as support, as well as a fruitful supply of cheap parts.

Indeed, the any recently became available on top of the JD Power survey for best aftersales service for a staggering 16th consecutive year, as reported by Autocar Professional.

nevertheless Maruti Suzuki’s dominance is actually not unchallenged. Hyundai is actually its next-closest competitor, having a market share that will fluctuates between 18% as well as 25% each year, as well as that will’s the biggest exporter within the country, plus the emergence of the bargain-priced Renault Kwid could yet take some sales away through the stalwart of the Indian automotive market.

Furthermore, Suzuki’s bid to take 100% ownership of the currently shared Gujarat plant hints at a move toward independence, as does the removal of the Maruti tag on its brand new cars. Further developments as well as implications will be watched closely both at home as well as abroad.

For currently, though, Maruti Suzuki’s net profit rose more than 42% in November This particular year compared with the same period in 2014, so that will’s clear that will its status within the Indian market will take some toppling.

by via Autocar RSS Feed



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