Maruti Suzuki justifies decision not to shrink size below M800

06 February 2008

In the wake of the unveiling of the Tata Nano, various manufacturers have made public their plans to develop and offer low-cost cars in India.

Denying media speculation that Maruti Suzuki was ready with a small car with a 660 cc engine, positioned below the Maruti 800, priced at Rs1.5 lakh, India's largest passenger carmaker has said that the company had no such plans.

Justifying its decision not to shrink the size of its products lower than that of its Maruti 800, the company said that ever since Maruti brought out the first people's car about 24 years ago, India's middle class and Maruti's customers have grown in every facet of their lives ranging from their incomes and lifestyles.

With that, the company says, their expectations from a car have evolved considerably. customers now generally settle for nothing less than contemporary styling, international quality and latest features that enhance their safety and convenience, while expecting performance and fuel efficiency like their parents did before them.

These changing preferences are reflected in the sales data for existing segments in the car market, with models and variants that promise only economy and low acquisition cost increasingly losing out to models and variants that are rich in features and style, Maruti says. "We find this trend holds true across segments, including among entry level cars," it noted in a statement.

"In our experience, our entry-level car customers nurture a high degree of aspiration, both in new cars as well as pre-owned. They want more from their cars in terms of features, performance, safety and versatility.