India car major Maruti Suzuki plans to try its hands on new products as the company readies to introduce its offering in the light commercial vehicle space next year. Maruti will place completely new dealership network for its commercial vehicles. The company does not want the commercial vehicle and passenger vehicle customer experiences to collide and spoil the overall experience.
We believe that Maruti Suzuki plans to give competition to Tata Motors in the light commercial vehicle segment. However, Maruti is in no mood to suddenly jump into this segment as the light commercial vehicles space is showing negative sales momentum. The April to June numbers in the light commercial vehicle space saw downward growth of nearly 20 percent. Maruti will enter this segment in phased manner and will enter specific regions before starting a fully fledged business and dealership network. The company has already started testing it offering to the commercial vehicle segment (codenamed Y9T) and test mules of the same were spotted on road.
The biggest competition for Maruti in the light commercial vehicle segment will be Tata Ace. Tata Ace is powered by a 0.7-litre and 1.4-litre engine. The 702cc engine puts out 16 hp of power and 37Nm of torque while the 1400cc unit makes 70hp of power and 135Nm of torque.
We feel that entering the light commercial vehicle space will allow Maruti to gain better sales numbers which will eventually result in the growth of overall profit.
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Source: ET Auto