MUL prides itself in providing lowest priced car (M-800) to it's customers.Tata motors is launching RS 1 lakh car on 23rd march 2008.
Maruti strategies to take over Nano is:
1.Maruti has always maintained that it will not develop a RS1 lakh car.
2.The decision is to pit it's largest selling model ALTO against NANO is major strategy shift for maruti.It could slash the price of it's ALTO (RS 2.3 lakh but will not be as low as Nano but a "significant markdown").
Alto price will not be slashed immediately.They will wait to launch a full-frontal battle only after nano volumes gain critical mass.this can happen only in 2010,when NANO motherplant at sanand in gujrat goes on stream.
Until then,Tata motrs is producing only 3000-5000 units of nano in a month from it's plant in uttarakhand.
3.They will not cut prices of M-800 or no upgradation in it to meet EURO-IV Emission norms(very costly). In 2010,11 cities in India will embrace Euro 4 & M-800 will be phased out from these markets.As the rest of the country moves to new emission standard, the M-800 will slowly be phased out.
4.The Maruti-800 euro 4 non-complianc is the reason why maruti has to pit it's best selling model against the Nano
Maruti strategies to take over Nano is:
1.Maruti has always maintained that it will not develop a RS1 lakh car.
2.The decision is to pit it's largest selling model ALTO against NANO is major strategy shift for maruti.It could slash the price of it's ALTO (RS 2.3 lakh but will not be as low as Nano but a "significant markdown").
Alto price will not be slashed immediately.They will wait to launch a full-frontal battle only after nano volumes gain critical mass.this can happen only in 2010,when NANO motherplant at sanand in gujrat goes on stream.
Until then,Tata motrs is producing only 3000-5000 units of nano in a month from it's plant in uttarakhand.
3.They will not cut prices of M-800 or no upgradation in it to meet EURO-IV Emission norms(very costly). In 2010,11 cities in India will embrace Euro 4 & M-800 will be phased out from these markets.As the rest of the country moves to new emission standard, the M-800 will slowly be phased out.
4.The Maruti-800 euro 4 non-complianc is the reason why maruti has to pit it's best selling model against the Nano