Maruti Suzuki recently updated nearly its entire portfolio with six airbags as standardand the company says this has led to an increase in bookings and enquiries of its entry-level cars. However, this update has also resulted in increased prices, which is hindering the new found interest from being converted to actual sales.
- Maruti witnessed 7 percent increase in bookings with 6 airbag update
- Wagon R particularly witnessed increased enquiries
- Ignis and S-Presso still pending 6 airbag update
Standard 6 airbag update has improved customer confidence
Speaking to the media during the monthly earnings call, Partho Banerjee, senior executive officer, marketing and sales at Maruti Suzuki, said, “We recently made 6 airbags standard on almost our entire lineup, and that has led to increased customer confidence for our entry-level models. We have been witnessing increased enquiries and bookings, especially for models like the Wagon R.”
In fact, Banerjee pointed out that bookings have increased by as much as 7 percent in July for the entry-level portfolio comprising models like the Celerio, Wagon R and Swift.
However, given the price sensitivity of this segment, not all impressions are converting into sales. Banerjee said customers are still coming to terms with initial down payments and financing options because prices have also gone up in the range of Rs 10,000 to Rs 35,000, depending on the model. This was particularly true with the Eeco’s six airbag update which has been majorly impacted. Maruti is, however, trying to work out more accessible financing options with its customers to increase uptake of these models.
Banerjee acknowledged that the entry-level hatchback segment continues to witness a steady decline, especially with models like the Alto and S-Presso. “The industry as a whole has remained flat, but there is resizing happening within the segments. SUVs continue to take share away from the hatchback segment.”
Ignis and S-Presso unlikely to get standard 6 airbags
As it stands, only the S-Pass from the Arena lineup and the Ignis from the Nexa lineup are yet to be updated with 6 airbags as standard. However, both these models are nearly at the end of their lifecycles and they are unlikely to receive the safety update.
Although Banerjee did not state it explicitly, responding to a question from the media about the pending update on these two models, he said, “The S-Presso and Ignis contribute just 2.5 percent to our overall volumes. We have made the updated to the remaining 97 percent of our portfolio.”
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