Maruti’s MUV foray takes note of India’s new tastes

With economic prosperity resulting in a shift in the taste of Indian consumers towards bigger cars, the country’s leading carmaker Maruti Suzuki on Thursday entered the multi- utility vehicle ( MUV) segment launching with the Ertiga.

This is an attempt by the company to expand beyond small and mid- sized cars.

The the base petrol version of the car is priced at ` 5.89 lakh ( ex- showroom Delhi), which is lower than prices of rival companies.

“Utility vehicles are a promising segment and we have been largely absent here so far. The segment has demonstrated a compounded annual growth rate of 20 per cent over the past three years. We believe this trend will continue,” Maruti Suzuki managing director and CEO, Mr S. Nakanishi said, adding that he is pushing parent company Suzuki to launch an SUV also in the country soon.

Utility vehicles presently account for around 10 per cent share of the Indian automobile industry. This category has been largely unaffected by high taxes and fuel costs. The domestic sales of such vehicles rose 16.5 per cent in 2011- 12 as compared to total car sales growth of just 2.2 per cent.

Ertiga, a compact SUV, was developed keeping in mind Indian market.

The compact MUV is targeted by the company for those who own a small car and want to upgrade but dont want a bulky vehicle.

“This car is meant for a compact- car customer wishing to upgrade to a bigger car,” said Mr Nakanishi.

Ford Motor and General Motor are also planning vehicles in the category. The Ertiga will compete with Mahindra’s Bolero and Xylo, Toyota’s Innova, Tata Motor’s Sumo and General Motor’s Tavera.

The launch comes at a time when Maruti’s market share has gone down to 38.44 per cent in the passenger vehicles segment.