Maruti has upped its flagship model 'Maruti 800' by 13% (Rs 25,000) to Rs 216,000. This was reported by a leading financial daily.
Maruti Udyog LTd. (MUL), a joint venture between the Indian government and Suzuki Motors of Japan, has a presence in the small car segment (800, Zen), mid-sized segment (Esteem, 1000), and the utility vehicle segment (Gypsy)
Market share in September 1999
Maruti's plan to hike the 800 price tag by Rs 25,000 (ex-showroom Delhi) is attributed to the additional cost that the company has had to incur to make its vehicle complaint with the Euro-I and Euro-II emission norms. However, the price hike will vary across models. For instance, while the 800 and the Omni will get dearer by Rs 20,000-25,000, Zen will get costlier by upto Rs 20,000. The company is still working on the details of the exact price hike and the date from which the new tariffs will become effective.
In view of the thin margins on its models, MUL has passed on the additional cost to the consumers. But given the stiff competition from Indica (TELCO), Matiz (Daewoo) and the Santro (Hyundai), the higher price tag of the 800 and the Zen will definitely have an impact on sales. However, 24% increase in passenger car sales in October 1999, highlights the popularity that Maruti still commands amongst masses. This is even more significant given the fact that Indica sales fell 6% and Santro by 14% in October.
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