Speed breakers ahead of Maruti

Speed breakers ahead of MarutiWhile the company has been able file spectacular numbers in Q4 banking on factors like the high rural growth and easy availability of finance, it is believed that it will have a tough time defending its market share in the coming times. It may be noted here that company banks 70% of its volumes from the A2 segment wherein almost 20 brands are fighting today for their share.

Moreover, the fact that several new launches are expected in the segment in the coming times will only add to the woes of Maruti Suzuki.

With products like Beat, Figo and Polo, the company has launched the new WagonR expecting to give it the much-desired answer to the competition. However, as competition will increase, the domestic market leader is expected to lose some of its market share. Notably, the company sold over one million units in the last fiscal.

However, the one million was mainly attained due to a high demand in the overseas market but with the company expecting a flat growth in exports this year; it will have to fight it hard in the domestic circuit to retain its top slot for the long-run.