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India's largest carmaker Maruti Suzuki is faced with a peculiar problem. On one hand, it is leading in the market, but on the other, facing a problem of unequal growth in its portfolio. Of the 12 models, only 3 or 4 are growing.
Here is a verbatim transcript of Swati Khandelwal’s comments on CNBC-TV18. Also watch the accompanying video.
In the past, Maruti Suzuki's growth came from its small and mid-sized cars. WagonR, Zen Estilo and Alto contributed to nearly half of its total sales. But now, they account for about 30-35%. The real growth drivers now are the Swift, Swift Dzire and Ritz—that contribute almost 40% sales now. Its small car Maruti 800, continues to show dismal performance and sales plummeted nearly 57% in this fiscal so far.
Maruti Suzuki is growing but that growth is happening only in its bigger cars now. That may means better margins for the company but production constraints of these models may mean longer waiting periods for customers.
For instance, there is a waiting period for Maruti Suzuki's A3 segment with SX4 and Swift Dzire and A2 plus segment comprising Swift and Ritz due to production constraints. Maruti Suzuki admits that there is a waiting period for its models
The company says, "We have ramped up the production of these models in recent months. It has helped in bringing down the waiting period from around four to five months to current level," adding, "We have ramped up the production of these models in recent months. It has helped in bringing down the waiting period from around four to five months to current level."
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