Maruti eyes lead position for new Ciaz sedan

Maruti Suzuki is betting big on its upcoming midsized sedan, the Ciaz, and is aggressively looking to establish itself in this segment. Sources in the know have told Autocar Professional that Maruti has set itself an aggressive sales target of 70,000 units in the very first year.

“The senior management has laid down its plans for this product and want sales of around 70,000 units within 12 months of its launch, which is almost at a par with the Honda City. The mandate has been passed on to the marketing and sales as well as dealership departments. More importantly, the firm is prepared to accommodate the production of the Ciaz in case if it breaches the 70,000-unit mark,” says a source, on the condition of anonymity.

After the Ertiga, launched in April 2012, this is the second Maruti that takes on a strong Honda brand.

Autocar Professional has also learnt that Maruti has begun rolling out Ciaz cars from August 2014 at nearly 100 units a day but will ramp up to ensure a healthy stock by the time it is launched in October 2014. The idea, says sources, “is that Maruti has a stock in the range of 10,000-15,000 units by mid-October.”

All this seems to indicate that the carmaker is expecting a good festive season response. After a delayed start, the monsoons have picked up, and the overall rain deficit has fallen in the northern states.

Bookings have opened for the Ciaz almost a month before its likely launch date. Teaser campaigns have begun. Clearly, Maruti will aim to have its car at dealerships well before Dhanteras. Last year, on this day alone, Maruti delivered over 15,000 units across all dealerships.

Much will depend on what Maruti prices the Ciaz.  One of the aforementioned sources said, “Maruti is known for offering value for money products and it has intelligently equipped Ciaz with several features. While the engineers have worked on the comfort level within the car, it is also going to be roomier than other mid-segment sedans.  Expect the pricing to be very aggressive. Also, the Ciaz is expected to boost the current domestic market size of the midsized sedan segment.”

The Honda City, the leader in the mid-sized sedan segment, sold close to 54,000 units between January-August 2014, averaging 6,750 units per month. The Hyundai Verna has sold nearly 26,000 units in the same period, averaging a monthly 3,000 units. The market size for this segment is estimated in the range of 15,000-18,000 units a month.