It's a long wait for key car models this festive season

A number of cars such as Maruti’s Dzire and Ritz, Honda’s City, Hyundai’s i20 and Toyota’s Fortuner SUV have been wiped off shelves in past 10 days and are not available for immediate delivery as demand frenzy during the ongoing festival season has led to stock out situation for car dealers.

Carmakers are now being forced to ramp up production to meet demand. For instance, Maruti has re-jigged its operations to produce more of its newer cars such as Ritz, Estilo, Swift and DZire, while Honda has hiked production of its flagship sedan City and General Motors is operating its factory on all seven days to meet the market demand for small car Spark, utility vehicle Tavera and Aveo sedan even though Sunday is weekly off for the company. The festive season has also put other cars such as Hyundai’s I10 and Toyota’s Innova besides Mahindra and Mahindra’s Xylo out of dealer stock.

Auto industry executives say that the dual-combination of the prevailing festival mood and the slew of new car launches in recent past has contributed to the high sales in the past two weeks. “The interest rates, which are at the lowest level since the past two years is also pushing up volumes,” said Shashank Srivastava chief general manager (marketing) at Maruti. Maruti is slated to end up with despatches of over 5,500 Ritz cars in September as against the monthly average of 4500-5000, it was delivering to dealers every month.

Besides sudden jump in demand there is also a supply lag for these cars. Companies usually ramp up production of new cars over a period depending on demand. Since there has been a sudden jump in demand during the festive period companies were not prepared to churn out the required number of these models.

Unlike older more established products such as Maruti’s Alto or Wagon R, where discounts and freebies up to 15% of the value of the car are given the newer models have much lower discounts. The demand rush during the auspicious Navratara and Dusshera festivals have resulted in the huge waiting period of up to three months on such cars — some of which are leaders in their respective segment.

“There has been much more sales than we had expected. Most of our cars like Tavera, Spark LPG, Aveo sedan have wiped off from the showrooms and are enjoy a waiting of four to six-weeks,” said General Motors vice-president (marketing & sales) Ankush Arora said.

Domestic car market is expected to scale new sales graph for the fiscal in September on the back of this huge demand. This would help the industry surpass the mark of 1.2 lakh cars that were sold in August in India.

Besides general demand, return of easy financing could also have helped spur demand. “We are anticipating a double digit growth in sales over the last year in September with market leaders like Maruti Suzuki and Hyundai their highest sales in the domestic market,” HDFC Bank auto loan head Ashok Khanna said. Earlier, most private sector financiers had tightened their auto loan portfolio which had also led to slow growth in demand.

Maruti Ritz Buyers Opt Petrol Version

Maruti Suzuki’s latest pin up car, “tall boy” Maruti Suzuki Ritz has been hitting the roads in decent numbers since its launch in May. It has been reported that buyers prefer Maruti Suzuki Ritz petrol variant to the diesel one. In fact, about 70 percent of current Ritz sales are for the 1.2-litre petrol engine version, with the remaining opting for the 1.3-litre Multijet diesel version.

This marks a significant shift in preference among buyers of B-segment small cars in India as these customers have preferred diesel versions for their lower running costs over the ages. One of the reasons for this preference for the Ritz petrol is that it is significantly cheaper than the diesel version. Another reason for the popularity of the Ritz petrol is that it is powered by Suzuki’s new generation KB series engine which offers improved refinement and relatively better fuel economy. This helps it to narrow the gap in terms of efficiency and running costs between the petrol and diesel versions.

The increased popularity of petrol engines among hatchback buyers is an important new trend in the Indian car industry. It is also an indication of the increasing maturity and sophistication of car buyers in India, who are carefully weighing the pros and cons of petrol and diesel versions and not buying diesel merely out of habit.

Maruti Ritz Buyers Opt Petrol Version

Maruti Suzuki’s latest pin up car, “tall boy” Maruti Suzuki Ritz has been hitting the roads in decent numbers since its launch in May. It has been reported that buyers prefer Maruti Suzuki Ritz petrol variant to the diesel one. In fact, about 70 percent of current Ritz sales are for the 1.2-litre petrol engine version, with the remaining opting for the 1.3-litre Multijet diesel version.
This marks a significant shift in preference among buyers of B-segment small cars in India as these customers have preferred diesel versions for their lower running costs over the ages. One of the reasons for this preference for the Ritz petrol is that it is significantly cheaper than the diesel version. Another reason for the popularity of the Ritz petrol is that it is powered by Suzuki’s new generation KB series engine which offers improved refinement and relatively better fuel economy. This helps it to narrow the gap in terms of efficiency and running costs between the petrol and diesel versions.
The increased popularity of petrol engines among hatchback buyers is an important new trend in the Indian car industry. It is also an indication of the increasing maturity and sophistication of car buyers in India, who are carefully weighing the pros and cons of petrol and diesel versions and not buying diesel merely out of habit.

Maruti Suzuki Ritz’s Namesake

Here’s an interesting piece of information about Maruti Suzuki’s latest small car for the Indian car market called the ‘Ritz’. Before 15th May 2009 (its date of launch), the hatchback was eagerly awaited and was extensively referred to as ‘Splash’ by the media. Somewhere in between, Maruti Suzuki was forced to rename and launch the car as ‘Ritz’ even though the same car is known as the Suzuki Splash in the international market.
The reason for this sudden move came after Maruti Suzuki’s sudden realization that the name ‘Splash’ was already registered as a brand by Ford Motors which had already applied for this name in 2002 with the Controller General of Patents Designs and Trademarks Registry in India. Ford India is planning to introduce a small car in the country next year which it wants to market as ‘Splash’.
When Maruti Suzuki approached the trademarks authorities for introducing its new hatchback, its petition was withdrawn and the car manufacturer was forced to rename it as ‘Ritz’. And that is how the Maruti Suzuki Ritz came to be known as the Ritz. Looks like car manufacturers are clashing over more than just the sales of their small cars in India.

Maruti to launch Ritz on May 15

Maruti Suzuki on Saturday said it will be launching its premium compact car Ritz on May 15 in Delhi in straight competition with its other premium compact car Swift.

"Ritz will directly compete with Swift. In the past, when we have launched cars in the same segment, it has helped the market to grow," Maruti Suzuki's managing executive officer, I V Rao, told reporters here.

"With the launch of Ritz, our customers would have two cars to choose from in the same category," he said.

Ritz and Swift would compete with Fabia, Getz, UVA and i20. Swift has been estimated to have a market share of 75% in the compact car segment.

In the next couple of years, seven new cars are being planned to be launched in the compact car segment by various car makers.

Swift, launched four years ago, has been a successful product of Maruti. At present, Maruti sells about 10,000 Swifts a month, Rao said.

The company has put up a new assembly line for Ritz at its factory in Gurgaon.

Last year, Maruti launched Swift in the European market. It makes Swift at a plant in Hungary.