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Tuesday, January 09, 2007
GM plans Captiva SUV, Maruti to lower Grand Vitara price
Automobile industry reports say that Maruti might as well localize the production of the Vitara, so that it can brig down the vehicle’s price.

The localization plan is also seen as originating from the need to bring down the total price of the Grant Vitara, which invites huge duties. The car maker could opt for a new product between the Grand Vitara and the Gypsy with high local content to make it competitive and allow it compete in the SUV space.

The attempt stems from the fact that Maruti has been losing its market share in the SUV mart after sales nosedived to around 25 per cent. It sold only 2,316 units in April-December 2006 as against 3,007 units in the corresponding period of 2005, said a report. At present, the Grand Vitara is imported as a completely built unit (CBU) and costs over Rs 19 lakh. On road, the price of the SUV is Rs 19.76 lakh while the Gypsy sells at Rs 5.2 lakh. Maruti wants to price the new variant at around Rs 10 lakh.

With General Motors planning the roll out of its Capitva SUV in India this year, Maruti is also gearing up for some challenge. Hence the plan, say experts. While GM has marked Capitva for the Indian market, Mahindra and Mahindra too will roll out a mild-hybrid technology version of its hugely successful Scorpio next year. Staying off would not be Ford, which has lined up a new improved Endeavour and Swedish auto maker Volvo which has plans to unveil an XC-90 model priced at Rs 50-60 lakh.

So there’s much competition on the cards. It is now left to be seen if Maryti Udyog has the ammunition needed for the SUV war.

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posted by a correspondent @ 10:43 PM  
3 Comments:
  • At 1:43 AM, June 20, 2007, Anonymous Anonymous said…

    Yeh probably Maruti needs a variant in the 5 to 10 lakh bracket to compete with Scorpio or Safari. But as of now the Grand Vitara is bound to raise a few eyebrows….thanks to its aggressive price and standard list of safety and equipment features. It is about to be launched sometimes next month. Initially they’ll take the CBU route but maybe later they’ll localize a lot of parts and reduce the price. Surely a grand entry into the market!

     
  • At 1:43 AM, June 20, 2007, Anonymous Chatbose said…

    Yeh probably Maruti needs a variant in the 5 to 10 lakh bracket to compete with Scorpio or Safari. But as of now the Grand Vitara is bound to raise a few eyebrows….thanks to its aggressive price and standard list of safety and equipment features. It is about to be launched sometimes next month. Initially they’ll take the CBU route but maybe later they’ll localize a lot of parts and reduce the price. Surely a grand entry into the market!

     
  • At 3:30 AM, June 20, 2007, Blogger chaitali said…

    Yeh probably Maruti needs a variant in the 5 to 10 lakh bracket to compete with Scorpio or Safari. But as of now the Grand Vitara is bound to raise a few eyebrows….thanks to its aggressive price and standard list of safety and equipment features. It is about to be launched sometimes next month. Initially they’ll take the CBU route but maybe later they’ll localize a lot of parts and reduce the price. Surely a grand entry into the market!

     
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