As part of a strategy to counter its recent market share decline by entering new segments, Maruti Suzuki has unveiled the ‘Ertiga' compact multi-purpose vehicle (MPV).
Its 14th model, the new MPV will be launched in March this year and will compete with models such as Mahindra's Xylo and the Toyota Innova. Pricing is expected in the Rs 6-7 lakh range in order to remain competitive, industry officials close to the development said.
“With the Ertiga, Maruti Suzuki will mark its entry in the utility vehicle segment in India. For Suzuki, it is another fine example of its expertise in developing technologies for fuel efficient, light weight compact cars. Ertiga is very significant not only for Maruti but for [parent] Suzuki Motor Corp. as well,” said Mr Shinzo Nakanishi, Maruti's Managing Director and Chief Executive Officer.
The utility vehicle segments accounts for 15 per cent of the car market, of which 66 per cent are MPVs.
Developed largely at the company's India R&D centre and in Japan, the Ertiga would only be manufactured at Maruti's Manesar plant for Suzuki globally (like the A-Star). It would be sold with a 1.3 litre diesel (fuel efficiency of 20.77 kmpl) and a new K-series 1.4 litre petrol engine. It would also be exported.
The carmaker, which had also shown a concept compact sports utility vehicle on Thursday, further said that more new models and higher diesel engine capacities will help it get back to its previous market share of around 45 per cent. Currently, market share has declined to below 40 per cent.
Though the company did not reveal the price of the car, some industry officials said that in order to attain volumes, pricing is likely be in the Rs 6-7 lakh bracket. This strategy will position it cheaper than most competition - the Xylo is available at Rs 7.24 lakh (ex-showroom, Delhi), while the Innova is priced at Rs 8.48 lakh.