The Maruti so far was the first real challenge to " Honda & quot; City in a large segment of cars. Despite the fact that Maruti not announced the retail figures of SX4 for the first six weeks after its launch on May 7, he was still able to send about 3000 units during the period. He said the figure includes cars are displayed in showrooms and those used to verify drives.
According to figures provided by the society of Indian Automobile Manufacturers (SIAM) company managed to sell 5008 units in the A3 segment in May last year. This figure represents an astounding increase of 100 percent compared with the same month last year. With 14.7 per cent in May last year, Maruti market share in the segment A3 is surprisingly doubled to 25.2 percent. On the other hand, during the same period, Honda city market share fell from 22 percent to 14,2 percent.
For FY 06-07 Honda City " remaind be a market leader in the A3 segment car sales more than 40000 followed by Ford India sold 39822 vehicles. However, the situation started changing in April as Hyundai stole attention from the 3028 sale of its Maruti compared with Honda in 2915 cars.
The happened in May, Maruti, finally upstaged both auto majors while Honda sold only 2838 vehicles falling 23 percent compared to corresponding period of last month.
The another new car in the segment, Mahindra and Mahindra Logan, which was introduced in April and deliveries began in May 2787 to write units in the month of snatching market share of 14 per cent in the first month in the A3 segment. As Logan plans to ramp production of this model in June, this may add to the growing problem in segment.
Honda confessed that new cars have made enough impact in fact in accordance with Janeswar Sen, Senior General Manager-Marketing, HSCI, " There some initial disturbances (Sales City), which was expected. But in the long term, we will seek to maintain our leadership in the segment ".
Despite initial obstacles that Honda is particularly with the surfacing of new competitions, it was still targeting sales growth of 5 percent of the city and hopes to sell 42000 units this year, more than 40400 units that they sold before the end of this fiscal year . Sen also said that five maintenance shutdown in May has minimum in numbers.
Maruti Honda " with top-SX4 end option price of 7.24 kyats, which is much cheaper than all the options, except the base model city, which is price of 6.77 kyats. Meanwhile, Logan in the top-end option is not even close to Rs 7 kyats barrier with base pricing option only Rp 4,28 lakh.
As responded to the challenge Maruti, Honda has distributed 12 - page document among its sales force, citing the reasons, a city better buy, than SX4. Maruti is not worried such a move " Honda & quot; actually believes more former recognition that sales of the company " Honda & quot; indeed received considerable damage.
Rajesh Jejurikar, MD, Mahindra Logan said: & ; quot; Our biggest selling point for Logan is the fuel efficiency of the vehicle, which was better than competitors (City and SX4). In addition, we will work ramping capacity from July, working on one and half shift basis. The plant will operate at full capacity since August. "
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