Maruti to launch one more model aside Swift

Maruti Suzuki, India’s top car manufacturer, is looking at consolidating its leadership in the premium compact hatchback, or A2, segment with the launch of Ritz on May 15.

Currently, the company has a 58% market share in this segment. Ritz will be the first passenger car to comply with the BS IV emission norms in both petrol and diesel variants.

In the A2 category, Swift holds 75% market share, Hyundai Getz  11%, Chevrolet U-VA 8%, Hyundai i20 4% and Skoda Fabia 2%.

Since the segment leader Swift is from Maruti’s stable, why another car in the same category?

Shashank Srivastava, chief general manager (marketing), Maruti Suzuki India, said, “It is our strategy to have more products in the same category, this helps us to have maximum share in that segment. The volumes that Swift will not be able to garner, Ritz will do.”

Srivastava agreed that initially there will be some cannibalisation of Swift by Ritz, but in the long term they will be able to differentiate customers on the basis of their profiles.

The A2 category will only get more competitive this year with the launch of Fiat’s Grande, Hyundai’s Jazz, i20 (diesel variant), Nissan’s March, Skoda Fabia (new), Volkswagen’s Polo and Toyota’s Yariz. Srivastava said, “With so many new launches slated in this category, and the A2 category pegged to grow at a higher pace, we would want to maintain our leadership and add to the 17% growth we contribute to the total A2 category.”  Ritz comes with a localisation of 95% with only engine parts imported from Europe and Japan.