Price gap between SX4 and Honda City has narrowed

Maruti Suzuki officials refused to comment on whether they would bring down the price or offer discounts on the SX4. “The price gap was not much in any case and the SX4 has gained popularity because of its strength as a good product,” commented a Maruti official who did not wish to be identified.

The two Japanese companies have been locked in a tough battle to increase their share of the fast- growing mid- segment of the Indian car market. Ford Fiesta and Hyundai’s Verna have also been notching up strong growth in this category even as Maruti Suzuki launched the Dzire sedan recently in order to add to the competition.

The mid- size segment of the Indian car market registered an overall growth of 14.61 per cent for the financial year ended March, 31 2008 at 2,25,719 units, up from 1,96,942 units in 2006- 07. According to industry body Society of India Automobile Manufacturers (SIAM), Maruti Suzuki emerged the leader in the segment during 2007- 08 with a market share of 21.85 per cent, a huge jump from the fourth spot that it held in 2006- 07 with a market share of 15.08 per cent. The company sold 49,335 units in 2007- 08, compared to 29,697 units in 2006- 07 to clock a growth of 66.13 per cent.

Maruti succeeded in pushing the once undisputed market leader Honda to the second slot reducing its market share to 17.95 per cent for the financial year ended March 31, 2008 from 20.55 per cent during financial year 2006- 07.