Maruti may inch closer to 50% market share with Ignis, new plant
Latest business news - The country’s biggest car maker Maruti Suzuki, which now sits on a share of over 47 per cent in the expanding domestic passenger vehicle (cars, vans and utility vehicle) market, could see its pie inch towards the 50 per cent mark in FY18. The new triggers behind this will be the commencement of operations at Gujarat plant next month and today's launch of Ignis, expected to be another volume model. Aimed to lure the young buyers in urban India, the premium compact car Ignis (petrol) has been priced attractively at Rs 4.59 lakh (ex-showroom, Delhi). It will compete with nearest rivals, Hyundai’s i10Grand and M&M’S KUV100, which begin at Rs 4.95 lakh and Rs 4.58 lakh, respectively. Ignis, like its two competitors, will be available in both petrol and diesel variants. The Ignis diesel will begin at a price of Rs 6.39 lakh. The top end models for petrol and diesel Ignis are priced at Rs 6.30 lakh and Rs 7.46 lakh, respectively.
Ignis, the company’s first new launch in the current financial year, has been developed with an investment of over Rs 950 crore and has a high local content of 98.5 per cent. The car will be manufactured at the company’s plant in Gurgaon. If the success of Maruti’s last two launches (Baleno in September 2015 and Brezza in March 2016) is any indication, Ignis also looks set to be another volume driver. The company has sold over 131,000 Balenos and about 80,000 units of SUV Brezza in
domestic market. The company sold about 1.3 million vehicles in domestic market during FY16 and has set itself a target to reach two million vehicles (including exports) by 2020. Commencement of Gujarat plant will ease capacity constraint that the company currently faces. Kenichi Ayukawa, managing director and chief executive officer at Maruti Suzuki eyes a bigger market share with Ignis. “Ignis combines unconventional design, seamless smartphone experience with AndroidAuto and Apple CarPlay, auto gear shift on petrol and diesel, advanced safety features and personalisation options, making it unique on every parameter. It will help us expand our presence in the premium compact segment,” he said. The new car will be retailed through company’s Nexa showrooms that were set up in 2015 as a distinct sales network to offer buyers a differentiated experience. Ignis will be Nexa’s entry level car and join the Nexa family of S Cross and Baleno. Ignis has been designed as a car for the urban youth, born in the late 1980s and 90s. The company has branded this segment of buyers as ‘millenials’ and those under the age group of 29 years.
Article source by – Business Standard