Maruti Suzuki may be overtaken by Renault Kwid

With Datsun redi-Go set to join the competition, Maruti needs a sound product plan to prevent its small car market share from being eroded.The Renault Kwid bookings continue to pile up steadily, making it a cause of concern for the market leader Maruti Suzuki. With an exception of Hyundai, no other manufacturer had managed to establish itself in the Indian sub-4 lakh passenger car segment which accounts for half of the car market. However, with the Kwid, Renault has started eating into Maruti’s market share.

In the first six months from its launch (till March 2016), the SUV-ish budget small car managed to clock sales of 41,2014 units and the bookings have surpassed 1.25 lakh units. Since the company has increased the production capacity at the end of March, we can expect the car’s monthly sales figure to witness a steady rise for many months to come.

The Kwid is not the only threat to Maruti’s stronghold in the small car space. The recently unveiled Datsun redi-Go, the second product to be based on Renault-Nissan Alliance’s CMF-A platform, has a similar recipe but in an entirely different flavor. It’s safe to assume that the red-Go’s pricing would be just as aggressive as that of the Kwid if not more.

Maruti’s sub-4 lakh portfolio includes the Alto twins and WagonR. The Hyundai Eon and i10 also play in the same segment. Both manufacturers can’t afford to maintain their status quo if they intend to keep the charging Renault-Nissan Alliance at bay.

This article has first appeared in Rushlane.com