With the smartly priced Ertiga MPV, Maruti Suzuki has the first-mover advantage, having kicked off a new innings and set the bar high for rivals.
Maruti Suzuki seems to have a winner on its hands with the Ertiga MPV which has sold over 12,000 units since its launch in early April. It has been estimated that 65 percent of bookings are for the diesel variants and as a result of a shortage of alloys, the top-end diesel variant (ZDi) has a nine-month waiting period. These alloys are standard fitment only on the ZDi and ZXi (top-end petrol) models. Imported from Thailand, Maruti’s sole supplier there is unable to cope with the sudden spike in demand. While Maruti had initially estimated that 20 percent of demand would be for the top-end diesel, the figure has inched close to 50 percent.
In the last fiscal, Maruti sold 10,21,875 units with the Alto accounting for a third of those. For India’s leading carmaker, it was an unusual year. Its stake to a renewed leadership, though never in doubt, was premised on the all-new Swift hatchback that made its debut last July.
No carmaker could have asked for such a glorious start with over 100,000 bookings in the first few weeks. Maruti went flat out into ensuring that those who wanted this car would get it. Despite a long-drawn-out labour issue in the third quarter of the last fiscal, Maruti threw itself into the making of the Swift with a vengeance.In the first five months of 2012, over 100,000 Swifts have been sold.
Now with the Ertiga, Maruti is on the cusp of a new beginning in a sector that will see a lot of action in the coming year. As Indian families, though nuclear in structure but including extended family take to the road, Maruti is betting on the fact that this is the car for the Indian family of the second decade of the 21st century.
Maruti saw the potential of this trend and unveiled the RIII concept, designed by DilipChhabria, at the 2010 Auto Expo.However, the mini-MPV for production has been designed by Suzuki with a huge involvement by Maruti’s engineers.
With the base petrol (LXi)starting at Rs 5.89 lakh (ex-showroom, Delhi) and the base diesel (LDi) starting at Rs 7.30 lakh, Maruti has clearly got the Ertiga’s pricing right and has set the bar high for the rivals who are expected to be on the scene by the end of this year and early 2013.
Production-wise, Maruti is leveraging the commonality between the Swift and the Ertiga. The latter is based on the Swift platform albeit longer at 4265mm as against the Swift’s 3850mm, which makes it a more spacious offering.
Advantage Maruti
Entering this exciting new segment gives Maruti a huge first-mover advantage. With a top-end diesel that debuts at Rs 8.45 lakh, the company hopes the Ertiga can grab some marketshare from competitors like the Mahindra Xylo, which recently got a refresh, but is yet to make an impact in the market, and the new Innova which has averaged about 6,000 units since its debut at the January Auto Expo.
What Maruti has to its advantage is its wide and far-reaching dealership network which means that the Ertiga can potentially reach the potential buyer all over the country and access to service will be a factor in its favour.
The MPV also comes with a slew of user-friendly features such as easier entry and exit and comfort for taller passengers. In terms of engines, the MPV that has been styled by Maruti as a lifestyle product could well have a CNG version in the future. This will come as a boon to buyers in Mumbai and Delhi, helping them keep a check on their operating expenses.
What competition will the Ertiga face? One competitor is the B-Max which Ford is seriously looking at for India. Based on the Fiesta platform, this vehicle would give Ford economies of scale as well as boost numbers which the company needs, given that its only real success story for the last two years has been the Figo. An Indian version may forego the sliding doors that the US version has in favour of a third row of seats.
Overall, the Ertiga affords a new view of the Indian car buyer who wants a blend of fuel efficiency (the Ertiga offers 17kpl), space and style but not sportiness (the Ertiga doesn’t have a strong sporty DNA). With its pricing, it may pose some threat to saloons such as the entry-level Honda City and the badge-engineered cousins, the Volkswagen Vento and Skoda Rapid.
BRIAN DE SOUZA