Maruti feels the heat of new launches in market, worries over declining share

Maruti Suzuki India, said that the Indian auto giant is facing a challenge in maintaining its dominance in the small car segment due to the new car models launching in the domestic auto market when no new addition in the existing portfolio from the Indian auto biggies.

Shinzo Nakanishi, the MD and CEO of Maruti Suzuki India said that their market share would start to dwindle as it is facing competition and also struggling with capacity constraints which results in long waiting times. When quizzed about the company's market share further scrolling down, Nakanishi accepted the fact but if the absolute sales volume accelerates, he will not mind it.

Maruti enjoys a great dominance in the small car market with its winning cars such as Maruti Alto, Maruti Ritz, Maruti Swift, Maruti A-Star, Maruti Wagon R and Maruti Zen Estilo.

If looking at the domestic auto markets scenario, Maruti's is feeling the heat with the new competition cropping in, in the domestic auto sector. Cars such as Ford Figo, Chevrolet Beat and Volkswagen Polo are gaining momentum in the Indian auto market. The sales figure reveal that Maruti's market has bent down to 49 per cent in April-November in 2010 over 51.3 per cent same time, in 2009.

As per auto experts, Maruti's share will slip more as the other auto biggies such as Toyota coming with Toyota Etios and Honda soon to introduce Honda Brio will bring in more competition for the Indian small car czar.

Nakanishi has hinted that the company needs to do alot more to keep up the current position. He said that, the company needs to enhance in the current portfolio of its car models.

Maruti is encountering issue with less than the required manufacturing capacity. R C Bhargava commented that, the company never thought that the Indian auto sector will take such a leap in growth. It was expeceted that the auto sector will grow about 5 per cent which to everyone's surprise raised to 30 per cent in the current financial year. It has come as a surprise for the auto markers.

Nakanishi also said that the company is rapidly expanding on adding new capacity. But the auto markets will still remain this strong, it will be difficult for the company to balance out and to maintain the same share in the auto market.

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