NEWS

Maruti Suzuki to introduce compact MUV to boost volumes

Monday, Nov 24, 2014

Maruti SuzukiBSE is planning to introduce a new compact multi-utility vehicle that would help it log volumes in the fiercely competitive compact car space, once been its forte, but now being threatened by bigger rivals like Hyundai, Honda and Toyota.

This all-new compact MUV, code-named YJC, is being conceived especially for India, and will be placed under the flagship Ertiga. Maruti is trying to create a new niche segment that will bridge the gap between hatchbacks and crossover vehicles in terms of size and seating capacity. A company spokesperson, however, refused to confirm the developments.

Maruti Suzuki may introduce compact MUV to boost volumes

"As a company policy, we do not comment on future products." Currently, under development stage, YJC would be sold in India and may be shipped to South East Asia, just like the Ertiga. The company has floated proposals to its vendors and suppliers for designing and sourcing components of the car. Maruti Suzuki, which is likely to introduce the car in the festive season of 2016, is targeting around 80,000 units in the first year, said a person close to the development.

"Maruti plans to develop a new product, which is a niche area until now as there are no premium wagons in the country. It is expected to be a premium product that's likely to be placed over its popular WagonR and is expected to deliver higher volumes for the company trying to regain its turf in the compact car segment. It has also floated request for quotations from its suppliers," the same person added.

According to sources in the industry, Maruti is trying to create anew niche segment to drive volumes like it has accomplished with its automated manual transmission, a new technology that turns regular manual cars into convenient clutch-less automatic vehicles at an affordable price. The AMT, introduced in the Celerio hatchback, has been a hit with a large chunk of Indian customers who prefer it over regular manual cars with just a 10% premium.

Trying to emulate its success, Maruti Suzuki's R&D teams are working with their Japanese counterparts to develop a new segment that would be spacious, but will have the ease of a regular compact car.

 

Source:http://economictimes.indiatimes.com/