Maruti Suzuki India is taking a few (unconventional) steps and reorganizing their product portfolio, that begs to ask a lot of questions on how that would impact their near and long term interms of profitability and market share. They might already have answers to all these or at least built models that can probably guess the out come. But here are a few questions that I think one should look forward and see the out comes of these decisions few years down the line.
- They are discontinuing Alto K10, their most sold entry level hatchback. How will this impact the market share, with Espresso yet to prove that it can replace Alto K10
- Around 22% of their sales is in Diesel cars, but they are stopping diesel variants of their most successful models including Vitaara Brezza . While Hyundai, Mahindra, Tata continue to have a diesel models in the respective segments. This would definitely impact overall market share, that’s my guess. Lets see.
- Delay in the launch of EV Wagon R. Tata, Mahindra have launched their EV models ,even though the market and infrastructure is not ready for EV vehicles (as Maruti claims). What would be the impact on the EV marketshare once they launch. Irrespective of the sales, having a working model in market give a lot of feedback and help tune the mechanical/electrical durability. Mahindra & Tatas are definitely going to have some advantage here. At present Wagon R is the only EV version showcased and there will be a few in the upcoming Auto Expo this year.
- No focus on safety yet. Homegrown makers Tata & Mahindra are aggressively focusing on safety with 2 cars from Tata achieving NCAP 5 star rating. How is this going to impact the perception and market share. Have to wait and see 5 years down the line.
- Connected car platform - Most rivals and new comers are making a lot of advancements in this area, but not so much of market buzz from Maruti yet on this front.
As of Feb 2020 , their market share hovers around 50% , lets see what happens 5 years down the line.