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Is it the end of the road for MSIL dominance

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I do not think MSIL will ever be the second player in the Indian Market. Though this can happen that MSIL's market share may come down from teh current number (like this happened when Hyundai came in) but that would not hamper MSIL however, it will increase the market size and the increase of market size will give MSIL more volume to place in the market.


Just compare the offerings that MSIL was offering during 1984 to 1998 and compare that with today's product line. Also same applies to the volume that MSIL is producing and selling in indian market.

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New Swift bookings cross 108,000 but production back on track

Tuesday, October 4, 2011, 18:08 by Auto Sr. Reporter

Maruti Suzuki Swift bookings have reached a record-breaking figure of 1,08,000 bookings. But normal production of the new Swift is back on track. This means the waiting periods are not going to be extended any further.dwsAuto spoke to Maruti dealers across the country to get a sense of the current waiting period.

What does this mean for you as a buyer and how will those who have already booked the Swift be affected? Let

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Alto's sale is very important for Maruti and it contributes Lion share in its sales. I remember Maruti has sold more than 1,00,000 cars in  few consecutive months where Alto has contributed more than 30,000 cars.Maruti has two more winners in its arsenal Wagon-R and Swift both are capable of doing more than 10000 per month.

I have strong gut feeling that Hyundai Eon is going to pull most of the Alto customer's to its showroom in case the price start nearly 2.5L.So Alto sales will come down to less than 15000 after many years.

Hyundai Eon has  given a lesson to Maruti to do act upon the market feed backs before loosing out from the market.With new Maruti 800 which is launching  in January 2012 Maruti can compensate the loose in Alto sales.  

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Hyundai Eon has? given a lesson to Maruti to do act upon the market feed backs before loosing out from the market.With new Maruti 800 which is launching? in January 2012 Maruti can compensate the loose in Alto sales. ?

If hyundai read out market perfectly, Eon should have got a Made in India oil burner by now.

Most of Alto buyers choose it for it's low(est) spare parts cost. Have a look at Alto's spare list, Eon can't touch that.

Are you sure new M800 is for jan 2012 launch?

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Saw a news brief wherein the anchor asked jagdish khattar Ex maruti chap, that could it be the workers are disillusioned with their payscale compared to the revenues MSIL earns?

Not a very good reason i'd say if it were indeed true. With the recent fallout MS had with VW, i think daal mein kuch kaala hai.

Could VW be directly influencing the Unions at M.S.?

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@vr.46

Problems in Maruti could be the handy work of some competitors,most likely Hyundai.

I strongly believe Nano fire is also similar work done by competitors.It costs much less to burn a Nano than giving a full page advertisement in a local daily.

Maruti's domination coming down is actually a good thing.It is so sad to see good cars from Fiat getting poor reception while Maruti's not so good cars have a huge waiting period.

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Everyone who is commenting should read this :

 

 

And then, they can post their comments here.

This article gives an in-depth analysis of the problem at MS, at Manesar,

at Gurgaon and deals with all labour issues including how MS lost connect

with it's labour.  A nice article for all of us to know many facts.

 

 

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Every stock market channels and news papers shows only one side of the problem.What's actually happening is the exploitation of the workers and this was bound to happen.These sort of strikes will increase once the growth slows down.

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Maruti still commands 43% market share and is the leader with Hyundai a distant second with just 20%. Maruti's USP is affordable, fuel efficient cars and off late an infusion excitement in the form of Swift, which has garnered mind boggling number of bookings. It will not just fade away. It has the biggest network of sales and service outlets in the country. It will grow once it concentrates on it's core capabilities and doesn't divert attention and resources into Grand Vitara's and Kizashi's, which should be just showcase models to let the world know what it's capable of.

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I agree that MS has still got the largest market share in India.

BUT, if you see their sales chart then Swift, WagonR and Alto consitutes more than 50% of sales and for name sake they keep intorducing these little makeovers of these cars to please the customers.

Do you really call them New Cars !!!

 

And by the way, with the so called New Swift, WagonR, Alto etc in market and no other potent new model launch from them in near future, i would say their sales are at peak and can only do down.

 

If they keep this speed and intent in their execution then slowly but surely they will loose out to competition.

 

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@DD

While i agree that maruti will not fade away, the concern is for how long will maruti contain this strike? This is the third time in 2 years Maruti has faced partial as well as full shutdown of their plants.
vr.462011-10-18 11:20:41

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@DD

...for how long will maruti contain this strike ? ...

Just now, I saw on economictimes.com this :

"No immediate resolution to the impasse, says Maruti's RC Bhargava"

So, when a Member of the Top Management says this, then, something is

really seriously wrong with the situation which might have gone beyond

repair.

 

It's real bad news for all those 1,00,000+ chaps who are waiting for their Swifts.

 

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with the so called New Swift' date=' WagonR, Alto etc in market and no other potent new model launch from them in near future, i would say their sales are at peak and can only do down.

[/quote']

Their upcoming cars are anticipated to be HUGE HITS.

If they solve the current labour issues, MSIL can very well retain/ increase their market share.

 

FYI - the upcoming maruti cars

R-III - Cheap people mover compared to Innova, expect XUV like rush.

DZire CS - Will be the best selling entry sedan in no time.

New 800 - a potential Alto/ Eon competitor

A* Facelift/ A* CS - Good i10 competitors

Ritz Backlift - Resolving the Ritz only problem area which makes it one of the best entry diesel hatch in our country.

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What striking workers complained about MSIL is nothing new.It had happened in 1970s  in GM factories during construction Chevrolet Vega in 1970s and by British Leyland workers during construction of various new BL products in 1970s.

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Apart from R-III (which will have other worthy competitors like Mini Xylo etc), there are no New cars in the list.

These are all makeovers/facelifts and basically this is the problem with MS.

They don't seem to have any new product to offer and there is a limit to such facelifts. You can't expect to keep volumes with such offerings.

 

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It will be difficult for Maruti to re-gain it's position of 50% market share and the downfall was quite evident due to competition from other companies and now the strike have worsen the situation.

Maruti was in it's best of show due to success of Wagon R, Swift, EECO, Dzire, SX4 etc... and could have swept the market by introducing Ertiga but this strike have toppled the things.

But I forsee if the strike ends on positive note Maruti can strike back with Dzire CS , Ertiga , New Swift and also expected Maruti 800.

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Maruti, which is synonymous with Haryana and Gurgaon, is looking outside the state to set up its operations. The continuing labour unrest at its Manesar and Gurgaon plants appear to have hastened its search, and the company is zeroing in on Gujarat.

Sources say the Japanese automaker, frustrated over the repeated interruptions in production due to labour problems at Manesar, wants to quickly finalize its expansion plans beyond Haryana, something that's not liked by the state government but is seen as "urgent" by the company's management.

While Suzuki chairman Osamu Suzuki met Gujarat chief minister Narendra Modi on September 8-after the collapse of the first peace agreement and in between the second labour strike-the company's board looks set to approve the proposal to invest Rs 18,000 crore, including Rs 6,000 crore by auto ancillaries, in Gujarat for a plant spread over 1,000 acres and with a capacity of two million units.

Interestingly, this will be the largest factory site for Suzuki globally, bigger than the combined size of its existing sites at Gurgaon and Manesar. The new facility in Gujarat will mark the beginning of a slow shift out of Haryana-a move that could affect not just the automobile hub in Delhi's neighbourhood but also impact real estate activity in and around Gurgaon. Already, several automakers, ranging from Tata Motors to Ford and Peugeot-Citreon, have started work on setting up facilities in Gujarat, which is emerging as a major auto hub in the country.
If the Gujarat proposal goes ahead, the production from the site at Becharji in Mehsana is expected to start by 2015. In the first phase, which will be completed by 2020, a capacity for one million units will be build. The next phase of expansion will follow.

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@sanjithchandran :

Does it mean that Suzuki is planing to have an engine plant jointly set up with VW in Gujrat?


I saw a similar news on some ACI thread but looking at your comments  above, it looks true to me.

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@sanjithchandran

gujarat is worse in the case of labour unrest.It's ploy by the management to threaten the workers,but the contract workers who are 80% of the work force don't have anything to lose.Unfair labour practices will have it's repercussions irespective of the location.Crazy Doc2011-10-19 15:46:51

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