BackMaruti to overhaul top models in bid to double sales by 2020
Cars from the new platform, code-named YSD, will be rolled out from the company's Gujarat plant, which will be functional in 2017
Premium
India’s largest car maker, Maruti Suzuki India Ltd, is planning to embark on a complete overhaul of its top selling models—such as the Swift, the Dzire and the Ertiga—in a bid to double its annual sales to 2 million units by 2020, said three people familiar with the development.
As part of this, Maruti is developing a new platform, code-named YSD. It will carry a new design with improved engine specifications and full-body changes for three models. The first car based on the new platform will be a revamped Swift and it will be introduced by 2018, said the people.
With this platform, Maruti plans to sell 700,000 units globally every year by 2020.
In 2014-15, these three models sold as much as half a million units together, which was a little less than 50% of Maruti’s total sales that year. During the year, the company sold 1.17 million units, up 11% over the year-ago period. The passenger vehicle industry grew 3.9% to 2.6 million units.
The cars from the new platform will be rolled out from the company’s Gujarat plant, which will be functional in 2017.
The outgoing or the current platform YP1, on which the Swift, the Dzire and the Ertiga are based, was created in 2006 when the company consolidated its various platforms into three.
A Maruti spokesperson said that his company does not comment on future product plans.
“There is a big emphasis on identifying platforms that will support Maruti’s growth story in the future. This is not only limited to India but across the world," said an executive from an auto parts maker, who requested anonymity. “Interestingly, we notice a larger participation of SMC (Suzuki Motor Corp., Maruti’s parent firm) in such decisions."
The move to revamp the Swift platform is also driven by the change in consumer behaviour, as more customers skip A-segment cars. “This is a big shift that is noticeable. While there is no doubt that there will be demand for A-segment cars, it is pertinent to keep the excitement going in the B-segment as it will see maximum growth in coming years," a Maruti executive said while confirming the plans. He requested anonymity.
There has been a remarkable turnaround in fortunes of Maruti Suzuki, which saw its market share plunge from 82% in 1997 to 38.3% in 2011-12, when the company was beset by labour strife at its plants in Gurgaon and Manesar in Haryana, and an appreciating yen had made imports expensive.
In July, the company sold half of all passenger vehicles sold in the country. Its sales were up 22.55% year-on-year to 110,000 units, while sales in the industry rose 11.43% to 222,000. During April-July, Maruti totted up its highest market share since 2001-02, selling 416,000 units, which is 47.51% of the total passenger vehicles sold in the country. But the market itself has grown bigger. Between 2001-02 and 2014-15, the Indian auto market expanded from 675,000 units to 2.6 million.
This marks Maruti’s best performance since 2001-02, when the company recorded 50.4% market share in a market that saw sales of 675,000 units. The company’s strong comeback is fuelled by strong performance in the B-segment, which includes the Swift and the Dzire, a consultant said.
“The company plans to introduce a premium hatchback Baleno during the festive season this year," said Abdul Majeed, national auto practice leader at PricewaterhouseCoopers. “Clearly, the segment has picked up."
Maruti’s rivals Hyundai Motor India Ltd and Honda Cars India Ltd sell the Elite i20 and the Jazz, respectively, in the segment. Both are among the best-sellers in the country.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
