Ertiga at the wheel, to steer Maruti Suzuki’s MPV ride

The next auto expo, Maruti Suzuki will have a showpiece to put up for display. Yes, we are talking about its new multi-purpose vehicle (MPV) - Ertiga, which will mark its formal entry into the red-hot segment.   

Along with Ertiga, the company will take the curtain off a mini SUV concept. With other new products lined up too, Maruti is making sure that its leadership position in the passenger car space remains intact, going forward.

Codenamed RIII, the concept of Ertiga was showcased at the 2010 Auto Expo. “We received a very good response from the auto expo. Keeping the feedback in mind, we are now production ready. Ertiga is a completely new vehicle and it will be the global unveiling of the product at the auto expo,” said Shashank Srivastava, chief general manager (marketing) for Maruti Suzuki.
The product will be pitted against Toyota’s Innova, Mahindra and Mahindra’s Xylo and Scorpio. So far, the segment has seen very little competition and has been growing at a steady pace. Though the company kept the pricing under wraps, it is expected to sport a tag of Rs7-9 lakh.

Earlier, MPVs contributed just 2% to overall passenger car sales. Today, it stands at around as much as 11-12%, which explains the carmaker’s shift in focus. SUVs constitute near about 14% of the industry.

“In all, Maruti is not present in 25% of the market. Hence, it is important for us to get into these segments where we can generate volumes in order to maintain our position,” said Srivastava, explaining the logic.

 “The compact MPV (Ertiga) will target customers who want to upgrade from their small cars. It will give a feel of luxury like a sedan and will accommodate more people at the same time,” said Srivastava.

Ertiga will come in diesel and petrol versions. The company is also for the first time launching its K14 petrol engines with the new vehicle, which are bigger, more powerful and fuel
efficient.

“As an OEM, it is important for the company to broaden its portfolio. The company has so far seen growth only in the small car space. As people move from one segment to other, it is necessary for Maruti Suzuki to have products in every segment. This will help it retain its leadership and also make its product portfolio stronger. With market getting tougher, every OEM is watching carefully the space where they are lacking,” said Abdul Majeed, Auto Practice Leader, PricewaterhouseCoopers.