NO STOPPING MARUTI UDYOG

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When Maruti launched its tin box - the 800, no one would have thought it will be such a huge success. It was then the only modern car in India, and it sold like magic. Maruti was an instant leader in the Indian car market, and there was no turning back.

The company never gave up its leadership in the Indian market. It did make some faux paus, like launching the Maruti 1000, which was received badly. There were other models like the Gypsy and the Versa that did not go too well. But most of the cars from Maruti were a success. And just when 800 seemed to be in its last days, Alto became the next gold mine of Maruti. When more car makers flocked India and cars like Santro and Matiz were released, everyone thought Maruti's share in the car market would come down to 30% or so. But it was not to be.

Even now, nothing seems to be going wrong with them. If the sales figures are to be believed, last few months must be one of the best in recent times for them. Launch of Swift, which was received very well with buyers, has boosted the sales considerably. Though it took a long time for people to accept its ugly shape, Wagon R has finally gone up in sales numbers and has finally moved above Santro in numbers. Alto is the largest selling car in India now. There is no stopping swift. Maruti has shown excellent growth figures of 41% in their Q3 numbers. It looks like they are going to hold on to their leadership for many more years to come. Obviously buoyant, they are investing more in production facilities.

But there are a few things that Maruti needs to work on. They have no cars to offer when people move up the value chain. They must remember that they have excellent service records, which prompt their consumers to look for a Maruti first when they are upgrading. Their C segments models - Esteem and Baleno are dated and need a serious overhaul or a replacement. They have no premium cars in the offering, which needs to be looked into. Maruti has the most enviable position of being loved by their consumers, who wants to stay with Maruti when they upgrade. But the company can remain a leader only when they can offer something for buyers in all the segments.