Thursday, July 29, 2010

Exit of Maruti 800 and Maruti Omni from Indian Car Market

About a year and half back, I wrote about the exit of Indian first luxury car Maruti Esteem from Indian Market. Maruti decided to completely phase out this car and present new car Maruti desire in this segment. Now, Maruti is again going to repeat this history by slowly phasing out most popular small car of India Maruti 800 and its Van version Omni. Maruti will remove 800 and Omni from 11 big cities of India in early 2010 where new emission rules (Euro 4) will become applicable.

Maruti will also start decreasing production of these cars and finally completely phasing out them by early 2016 because by then new emission rules will become applicable in whole India. According to Maruti, it is not profitable to upgrade Maruti 800 and Omni to new emission standards, therefore, company has decided to slowly phase out them. Maruti 800 is also referred as people’s car because this car provided hope in the eyes of large Indian middle class to afford a car.

Maruti 800 was launched in year 1984 in India and so far Maruti has sold more than 2.5 million Maruti 800 cars. These numbers themselves tells us the story of huge success of Maruti 800 in India. Maruti 800 played major role in making Maruti Suzuki number one car manufacture of India. Earlier, lots of people and auto experts believed that Maruti will try to position Maruti 800 against Tata Nano by reducing its price; however, Maruti does not see any profit in doing so.

Tata’s Nano is likely to give competition to Maruti 800 because of its economical price; therefore, it is certain to see decrease in sales of Maruti 800 after the availability of Tata Nano in Market. With this news, it also looks that Maruti has decided to not give any competition to Tata Nano by completely exiting from this segment. On the other hand, this is good news for Tata Nano and Maruti Alto, which can see the shift of Maruti 800 customers towards them.

3 comments:

  1. These cars will never be get out of the people's mind because for Indian people synonym of car is Maruti.People still have Maruti 800 and maruti omni in their houses and they will never sell them because they are the best and most lovable car for them.I have some more updates for Maruti fans of India.

    Maruti Suzuki is India's largest car maker company and this company provides many car which are known for low maintenance and high performance.Maruti continues it's tradition by launching new MPV Maruti Ertiga,which is fabulous in style, has impressive mileage and amazing power.Everyone will love it.

    Maruti Ertiga was recently unveiled by Maruti Suzuki India at the 11th Auto Expo and now this largest carmaker of the country is launched on 12th April 2012 in New Delhi.Maruti Ertiga price is in bracket of Rs. 7- Rs 9 lakh and is said to be competing neck-to-neck with the segment best selling cars Toyota Innova and Mahindra Xylo.

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