End of road for MSIL dominance? - NO - may be its a long term process - its just binging
Maruti still holds 50+% of market share. Also India is one of the fastest growing car market.Day by day need for cars will be increased and which will help them to keep their share.
1. Products: Still there are many people in india who buy a car for transportation. First car is always a special for everyone. And most of them dont want to take risk in this. Those who consider maruti are looking for a total VFM
package.They dont want to take risks. What a India buyre is looking for ? A low cost product with decent quality.
Money is the most important factor here that's way we see Hatchback are sold mostly. people want car with low cost, high fuel economy, low maintenance, good ass
, good resale. And in all these departments Maruti is still king. They have right products which fulfills all the above needs.
2. Not in sync with market dynamics - I agree that demand from customers is increased a lot. But other manufactures give nice product with lot of features (i10,polo,fabia)but still all those are quite expensive or got some basic issues. What Maruti has managed is to make the balance here.
3. Quality interiors - I agree on this but now you can see much improvement on this (new swift). They were providing cheap quality interiors simply because there was no competition and
we have to accept it. Now they have to change this and looks like they are changing.
4. Lack of market research and product development - Estilo and Astar - still sells more than 2k+ units (OK IMO
). Now consider the competitors - how much they are selling ? (Beat - 2k, spark 3k, indica - 1k) Only santro sales better than this in this segment.
Alto -What is k10 then? Have you driven any k10 ? it is better than old gen Zen. They are managed to sell old alto also as its entry level product with no competition. Yes but after Eon
sure we will see some changes. (rumors new 800 coming by 2012 bigger than current alto)
Kizashi , Vitara - I agree with you these are total failure.
5.Too many products - [products many of them competing with each other] What is wrong in this ? Think from company perspective - They have
800,Omni,Alto - 3 choices
k10,Astar,Estilo,WaganR,Eeco - 5 choices
Ritz,Swift - 2 choices
Now who wins - Maruti - although the competition is there but finally people are purchasing their car only then why they should worry?
6.Not using cash surplus : Partially agree but they are spending money on global scale.The product we see in global market are actually same in indian market (although with some low quality) but all other manufactures also do the same.
7.Indians getting tired of MSIL - I dont think so - One will simply try to buy the car which is perfect and fulfills as many aspects. Currently Maruti is giving what customers want hence people prefer them. If in coming future other companies are fulfilling requirements obviously they will choose other cars.
MSIL will still dominate Indian market but yes we will see a lot of drop in their sale in coming years.
Competition is always good as it benefits the customers only. And upcoming competition will sure help us.