In order to gain more market share, Maruti Suzuki India Ltd (MSIL) is aiming at a niche segment with its ecstatic Ertiga LUV (Light Utility Vehicle) and hopes to collectively acquire 50 percent of the total market share in the coming years.
Beginning the year 2011 with a good market share of 45 percent, the recurrent strikes and stand-offs led the country’s largest passenger car maker lose its share by 6.56 per cent. Maruti opened new horizons to get back its place and improvise the share from the current 38.44 percent to 50 per cent.
Shashank Shrivastava, Chief General Manager – Marketing at Maruti said that they would now be focusing on the untouched 14 percent of the segment with its compact vehicles. Ertiga is the perfect car for those wanting it for daily commuting to office or going on outings with family and friends.
Earlier, Maruti had tried on the utility segment with its Gypsy and Grand Vitara but had its limitations. New Ertiga has more appeal and flamboyance that will attract young buyers of the growing country with its aggressive pricing and generous space.
Deepesh Rathore India MD at an international consultancy firm, IHS Global Insight said with the Indian car buying preference maturing, it won’t be wise to launch another small car between Maruti 800 and Swift as already seven models are available. Since Maruti carries the trust of buyers and the new Ertiga caters them with more options.
S Nakanishi MD & CEO, MSIL said that the compact utility segment is a promising one and forms 18 percent of the total market with an annual growth of 20 percent. Maruti had been absent from this segment from a long time but now will try to tap the potential segment, he added.
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