About a year back, I wrote about the exit of Indian first luxury car Maruti Esteem from Indian Market. Maruti decided to completely phase out this car and present new car Maruti desire in this segment. Now, Maruti is again going to repeat this history by slowly phasing out most popular small car of India Maruti 800 and its Van version Omni. Maruti will remove 800 and Omni from 11 big cities of India in early 2010 where new emission rules (Euro 4) will become applicable.
Maruti will also start decreasing production of these cars and finally completely phasing out them by early 2016 because by then new emission rules will become applicable in whole India. According to Maruti, it is not profitable to upgrade Maruti 800 and Omni to new emission standards, therefore, company has decided to slowly phase out them. Maruti 800 is also referred as people’s car because this car provided hope in the eyes of large Indian middle class to afford a car.
Maruti 800 was launched in year 1984 in India and so far Maruti has sold more than 2.5 million Maruti 800 cars. These numbers themselves tells us the story of huge success of Maruti 800 in India. Maruti 800 played major role in making Maruti Suzuki number one car manufacture of India. Earlier, lots of people and auto experts believed that Maruti will try to position Maruti 800 against Tata Nano by reducing its price; however, Maruti does not see any profit in doing so.
Tata’s Nano is likely to give competition to Maruti 800 because of its economical price; therefore, it is certain to see decrease in sales of Maruti 800 after the availability of Tata Nano in Market. With this news, it also looks that Maruti has decided to not give any competition to Tata Nano by completely exiting from this segment. On the other hand, this is good news for Tata Nano and Maruti Alto, which can see the shift of Maruti 800 customers towards them.
Also visit-Maruti to withdraw Maruti Esteem
Features of Nano (Tata’s One Lakh Rupee Car)
Maruti Swift Dzire to Replace Esteem (Plus Dzire videos)
Sunday, April 05, 2009
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