Hyundai H1
hyundai h1 at OnlyAutos.net
India’s largest carmaker lost market share
For the first time in several years the market share of india’s biggest car maker Maruti Suzuki has dropped below 50% for the first half (H1). The reported market share for this period is 47%.
This is onl bacuse of high competition form other emerging automakers like Tata, Ford, GM and Hyundai. All these payers are in the market with good products and aggressive marketing.
The world’s cheapest car Tata Nano has also contributed a lot in Maruti Suzuki’s poor performance. R C Bhargava, chairman of Maruti Suzuki in an interview said. “The lower cost of ownership of our vehicles will offset competitors’ aggressive pricing tactics.
The company has also set aside close to Rs 3,000 crore to increase its manufacturing capacity by 200,000 units to 1.2 million cars by 2011 and build a new research and development facility at Rohtak, which will be Suzuki’s R&D hub for Asia operations.
Abdul Majeed, auto practice leader at PricewaterhouseCoopers (PwC) has said the.
“Maruti’s volumes will grow but its market share may come under pressure,”
The main reason behind shortfall in market share for Maruti Suzuki can be beacuse of many new entrants in this small and mid segment, such as GM’ Beat, Hyundai i20, Ford Figo and Volkswagen Polo are very agressive in the current market.
The another reason is that Maruti Suzuki factory was shut down in June for maintanance which has effected production for a longer time.
The second half would be very tough for all manufacturer in India as competition is getting tougher every moment. Manufacturer are focusing on more and more advertising which will ultimately drive in longer run
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