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The Indian auto industry is growing and newcomers like the Ford Figo and Chevrolet Beat challenging Maruti Suzuki’s existing product portfolio. However, it still holds a strong position in the Indian market and remains tranquil. Recently, the car maker brought in the fuel-efficient new WagonR with the K-series engine. As far as April 2010 sales are concerned, Maruti Suzuki India Limited displayed a jump of 29.70 per cent at 93,058 units over April 2009 when it sold 71,748 units. Exports rose by 89 per cent to 13,024 units from 6,891 units in April last year.
India’s largest car maker sees a great potential for its new cars. Suzuki Motor Corp attaches great importance to India and the company’s R&D unit has been involved in developing made-for-India cars right from the beginning. The Alto has been one of its best selling cars ever since its debut on the Indian roads.
Not just producing new cars, Maruti Suzuki is also expanding its dealer network in India in a bid to maintain its share of about 50 per cent. The company was founded by Suzuki and the Indian government in 1982. Now, it dominates the small car market with highly efficient models when it comes to mileage and performance. The car maker has also moved to the premium car market with its SX4 sedan and the Grand Vitara SUV.
Maruti Suzuki has waiting lists of one-three months for its Swift, Swift DZire and Eeco models. It had recently announced plans to increase capacity to meet the increasing demands for its new cars. Now, the automaker plans to enhance capacity a second time at its Gurgaon and Manesar facilities in India.
If the new car business works great for Maruti Suzuki, its used car business works even better. TrueValue, the company’s used car business allows individuals to buy and sell used cars. The pre-owned car business was started way back in 2001 and the company has sold over 1 Lakh used cars. 90 per cent of the car sellers were Maruti car owners. The TrueValue business in India has been growing by over 20 per cent year after year.
The pre-owned car business has been helping Maruti retain its old customers. While a major portion of the used car market in India is unorganized, Maruti TrueValue happens to be the most organized player in the market. The car maker has at least 6,000 second hand cars in stock at any point of time. The company has over 400 dealers and outlets spread across India and Maruti has taken care to make over 300 of these outlets possess TrueValue capabilities. This strong network offers sourcing, certification and selling of used cars. As of now, Maruti is looking at covering all its dealers for the used automobile business and employing trained staff.
Source by Deepthi Alvares