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Tuesday, May 18, 1999

Maruti to focus on western region

Dev Chatterjee  
Mumbai, May17: Automobile major Maruti Udyog has started an aggressive campaign to sell more of its Maruti 800 and Omni models in the western region following the loss of its largest market in the National Capital Region. The company will have to sell 8,000 units per month of its largest selling models in the rest of the country as a Supreme Court judgement has barred it from selling those cars which are not meeting the Euro-1 emission norms.

Mumbai dealers say the company has issued instructions and doubled their sales targets so that more cars can be sold in the region which is the second largest and an alternative market after the New Delhi market. At present, Maruti sales about 2,000 units of 800s and Omnis in Mumbai per month.

Cheap finance from its subsidiary -- Countrywide Maruti has been thrown in as an extra to entice customers. Company officials say that they would give delivery `off the shelf' to Mumbai customers as all the cars which are not meeting the Euro-I norms are being diverted toMumbai.

At present only Zen and Esteem are meeting the Euro I norms from Maruti's stable. But its most popular model 800 and cheapest Omni are facing problems over the emission norms. From June 1, the company says that it will be able to sell Euro-I cars in New Delhi and gradually expand it to cover all cities.

Maruti's loss has turned out to be a big gain for Hyundai's Santro and Daewoo's Matiz who have moved into the top gear to sell more cars. Both Korean chaebols have unleased a marketing and advertising drive based on the fact that their cars are meeting all the emission norms and they are `future proof'.

Though Telco Indica is also meeting the Euro I emission norms, it has failed to tap the demand as its production schedule is slower than the other Korean car makers.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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