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Maruti Suzuki Gets Scared Of Honda


2012 Jazz vs Swift Shootout

Maruti Suzuki has remained the king in the car segment for a long long time now, with its dominance unchallenged for years. Even after global car makers entered India, Maruti Suzuki was hard to beat, owing to fuel efficient and well priced products. India’s largest car maker’s position in the market can also be attributed to competitors doing things wrong in many ways. For instance, the vehicles which came closest to beating Maruti’s top selling products lacked in some area or the other. Like the Hyundai Eon is not as efficient as the Alto 800, the i20 is priced much higher than the Swift and the Honda Brio doesn’t have a diesel engine.

However the lack of diesel engines will no longer be lacking in Honda cars as the Japanese car maker is all set to unleash the diesel powered Amaze in the Indian market next month. Now Maruti Suzuki dominates the sub 4-metre compact sedan segment with the DZire, which comfortably sold more than 18,000 units last month. Honda is aiming to sell 10,000 units of the Amaze every month, which is bound to hurt the sales of the DZire. This has led to Maruti Suzuki taking steps unheard from them before.

Maruti Suzuki is offering discounts on the Swift, yes, you heard that right. Maruti’s second highest selling car which easily clocks 19,000 units a month and has a huge waiting period is being offered with a discount and instant delivery. While its a fact that the automobile market is seeing a slight decline in sales, Maruti Suzuki getting scared of Honda’s upcoming diesel onslaught cannot be denied. Its just a matter of a few weeks, when Maruti Suzuki will announce discount and instant delivery on the Swift DZire as well.

Maruti Suzuki does have quite a few reasons to be scared. The Amaze is not only more powerful than the DZire, its more fuel efficient as well. The Amaze also boasts of more interior space and carries a more premium appeal in the eyes of Indian buyers. The DZire is a abrupt looking car, the Amaze is not. Maruti Suzuki knows all this and needs to react quickly. The Japanese duo are all set to go head on and we have a feeling that the brand with the H on its logo is going to come out on top.

Honda_Jazz_vs_Maruti_Swift

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  • Ben

    It’s not because MSIL is scared of Honda that it is offering discounts for the best selling swift, but to uproot honda and its products in the bud stage itself. Even though Honda or other brands are far superior than maruti suzuki (absolutely not, let’s assume) they all lack in one thing commitment and service. this only made maruti overtake the ever dominant fiat 3 decades back and be the undisputed king even now. so all this hype as usual will soon fade away. but if honda’s diesel engine has some potential to tackle Indian conditions it will do some wonders for Honda. Finally only two brands in India know how to tackle Indian conditions they are maruti suzuki and mahindra.

  • Suraj

    I don’t think So.

    IMO, Maruti is wants to make up volumes so that they can balance their score card of year 2012-2013.
    They want to nullify the effect of lost sales due to Manesar plant lockout.
    Overall in world of Finance, showing growth over the past always helps to maintain cash inflows.

    It would be okay to say that MSIL is scared, if they have started giving discounts on Dzire (which will start but just around when Amaze launch creeps in). As of now we can say March blues is acting as main reason behind these discounts and special editions of almost every MSIL car.

  • D.Rajan

    Well i would say its too early to comment how Amaze will perform. If that is the case then why Brio is not performing well now with teh hatch? Even if you compare it with Petrol Swift.

    There is something else that give Maruti the edge. The service network and the blind belief amongts the Indian masses on the brand Maruti. That is something you cannot shake with just one just product.

  • Ben

    @D.Rajan You are right but the word blind belief cannot be accepted as almost every car buyer is aware and literate enough to choose the right car for him. Motor beam’s beam enlightens every car buyer in this aspect. As for maruti suzuki it is unique compared to it’s rivals in one collective factor reliability.

  • Crazywheels

    Honda is a luxurious brand. We have no doubts about the performance of Honda’s Dream Diesel 100 HP engine. It can easily overthrow suzuki’s Diesel mill. But Honda’s production volume is very much less than Suzuki’s. Even Suzuki cant meet their growing needs. But Amaze will increase Honda’s share in India. Its not maruti but other Companies are scared of Honda Diesel.

  • sandy

    Well they say ” Darr Ke Samne Jeet Hai!”. And sometimes its essential to get scared, to keep ego and monopoly at bay. MS right now is scared of everything, right from the variation of taxation principle, to some automakers discounts like Chevy Sail which uses the same diesel power train yet more practical. Etios has also came up with image makeover, Fiat has also started concentrating, Ecosports and Honda diesels were also coming. Plus, their withdrawal from major markets like US and others, is enough to get their trozans running. They just want to get more deeper into the market, so discounts should make it easy.

  • No One

    Maruti will continue to sell, Honda has not yet targeted the mango people, they always went for a people who wanted to be in class to pay more..

    I guess if Honda put a price tag to beat DZire, they will certainly be dealing with a set of people, who are ready to book cars from Maruti without even seeing picture of it.. Note the example of Alto 800 :P

  • Nitin

    Guys,

    Honda -> Quality
    Maruti -> Affordability

    The winner will be the one who can provide the best balance of quality and affordability to the customers. So I am sure you guys can decide who will be the winner :)

    Cheers!

  • varun

    It’s not like that still longway to go for HONDA to overtake MARUTI-SUZUKI.But maruti should think of some of the aspects like 1) increase the quality of the vehicle 2)Give more features for decent price 3) Filing up gaps in UV’s and SUV’s segment 4)Should localise components for high-end models and concentrate on design department.5) Try to capture highend cars market by giving them diesel heart and perfect pricing.If they wont concentrate on these above mentioned areas there will be tough time for maruti coming.

  • anuraag

    In todays scenerio no manufacturer takes the other lightly,and it will take some real effort and time to beat MS in this game ,given MS themselves shouldn’t come under panic and puts the wrong foot forward.Yes Honda’s deisel is agood product,but their are other areas which also has to be covered as availability of spares ,after sales service,which are the real strength of MS. And pricing is also a factor which will decide,because MS has always been charging a premium too much for their products.MS knows this very well, and they have to take care of this negative point. Because when every things become equal the decision goes by price of the product ,as far as Indian market is concerned

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