In a move that can only be interpreted as a shrewd one in the ever more challenging Indian SUV market, Maruti Suzuki Grand Vitara receives what appears to be a major update along with mind boggling fuel economy of 27 kmpl, and a drop in price by a shade under ₹20,000.
This legerdemain juggling of better performance by way of super affordability, is what industry pundits are describing as Maruti’s trump card in the mid-size SUV space.
Market Trickle, Market Shock and Market Awe through engineering excellence
Maruti’s success is timely, as rising fuel prices squeeze consumers and rivals jostle to wrest the upper hand in India’s SUV market, which is red hot.
Having decades of engineering experience, the Chios have creatively worked with the Grand Vitara’s hybrid powertrain system to make it the most fuel-efficient SUV in the market.
“What we’re first driving up on is not just an iteration,” says auto analyst Rajiv Mehta. “This is a whole new way of looking at powertrain efficiency in a car of this size and capability. And the price correction Maruti has not so much turned off to be a value story.”
Engineering wizardry underpins this efficiency record with a number of technical advances. Here, Maruti’s engineers have further worked to smoothen transitions between the ICE and the electric motor in the strong hybrid trim, have improved the regen braking function to capture more energy while deceleration, and have even applied a more evolved thermal management for constant optimal operating temperatures in all possible driving conditions.
Price Cut Strategy: Avoiding the Obvious
The stock ₹20,000 markdown might seem like little in the grand scheme of things, but experts in the automotive industry regard it as a calibrated step with much wider significance.
Just as commodity prices are going up and every manufacturer is passing on the burden to customers, Maruti has pulled a fast one, gaining both psychological and real ecommerce benefits with this move.
It is a very smart move, at the right time,” says Vishnu Mathur, a former head of the automotive industry association. Even as rivals have their hands full in explaining price increases to customers, Maruti is giving them more. This builds a compelling story for value-focussed Indian consumers.
Amid this speculation, sources in dealer networks indicate that the news has already led to an upswing in showroom footfalls and enquiries.
We have recorded about 40% jump in serious inquiries which are citing the enhanced fuel efficiency and the discounted pricing,” says Anand Sharma, a leading Maruti dealer in Delhi NCR. “What’s truly exciting is that almost 70% of these potential prospects are currently behind the wheel of competitive brand cars today.”
I have local suppliers now which was not always possible (I mean the price reduction).”We are benefiting from a localization process with parts souring reaching over 91% from 87%.
This decreased reliance on imported parts has provided a hedge against currency fluctuations and buttressed the government’s “Make in India” goal.
Strong Hybrid Technology: The Key to Efficiency
The Grand Vitara’s newfound ability to keep a lid on fuel consumption is centred around the front-wheel-drive model, which now benefits from Maruti’s advanced strong hybrid technology, borne out of the carmaker’s tie-up with Toyota.
As opposed to mild hybrid systems with modest electric assistance, the strong hybrid technology allows efficient electric-only driving in city traffic, resulting in significant fuel savings in stop-and-go driving situations around town.
It”s driven by a high-capacity lithium-ion battery pack, a potent electric motor, and an Atkinson cycle petrol unit adapted especially for hybrid use.
The innovative power management system instinctively adjusts the balance of electric and petrol power to suit driving conditions, battery charge and even your driving style.
“What is so useful about this system is its flexibility,” says Akira Tanaka, a powertrain expert connected with Maruti’s engineering team. “The car actually learns the driver’s behavior over time, and it knows how to change its hybrid strategy based on the driver.
If a person uses the vehicle to regularly commute through congested urban traffic, their power delivery pattern is going to be different than someone who uses the vehicle for highway driving.
This learning function allows the system to achieve peak efficiency under any driving conditions. The 27 km/l mileage is the combined cycle figure, and you would even do better in city driving environment with higher chances for electric-only running and regen braking.
Competitive Landscape: Sands Slipping It is a difficult game to recap as the sands keep shifting on a weekly basis!
The refreshment of the Grand Vitara comes in an era when the mid-size SUV space in India is currently witnessing a battle never seen before.
Hyundai’s Creta has been ruling the roost for a while now, but more recent entrants like the Kia Seltos, Volkswagen Taigun and Skoda Kushaq have been eating into its market share.
But none of them has the combination of robust hybrid technology and aggressive pricing Maruti has laid out now. The nearest rival as far as mileages go is giving 21 km/l and that is 6 km/l short of the improved Grand Vitara.
“This efficiency gap adds up to huge savings in the life of the vehicle,” estimates financial analyst Priya Menon. “At today’s fuel prices and average annual driving distance, this translates into a saving of about ₹45,000 per year.
That’s 02.25 lakhs over a span of five years – effectively offsetting a very sizeable part of the price differential between the two models.”
Even today fuel efficiency is among the top three considerations for purchase of a passenger car in India in any segment as per the market data. In creating so compelling a lead in this vital coefficient of friction, Maruti has made the Grand Vitara the logical choice for the discriminating consumer.
Beyond Efficiency via Feature Enhancement
Not only the fuel efficiency increment and price drop, but also, these feature additions are been implemented in all the variants of the Suzuki Grand Vitara.
On the technology front, the infotainment finally gains wireless Android Auto and Apple CarPlay, the instrument cluster gets new hybrid system information displays and ventilated front seats are now available on a wider range of models.
Safety credentials have also been bolstered, with six airbags now included on all but the entry-level model. New mid-level models are getting advanced driver assistance systems such as AEB (autonomous emergency braking), lane departure warning and adaptive cruise control which were previously only offered on top-spec versions.
“The feature enhancement approach pairs with the efficiency and pricing actions,” consumer behavior expert Divya Krishnan points out.
“By addressing customer needs such as commute, safety and connecting emotionally, in addition to functional needs, that is, pride of ownership, Maruti has been able to offer such a compelling reason to buy that it connects with the brain (rational) and heart (emotional) of the customers.”
Production Capacity and Lead Times
With expected demand rise after these improvements, the question automatically that comes across is what the will the Maruti’s current production capacity and waiting period if any.
According to sources close to the company, production at the Gurugram plant has been streamlined that has resulted in an increase of around 22% Grand Vitara without any heavy know-how.
“We’ve applied a number of lean manufacturing concepts and streamlined our workflow,” says a senior production manager, speaking on the condition of anonymity. “These modifications have reduced cycle times on our core production activities, while upholding our high quality standards.
However, we hear industry watchers reckon the wait for the strong hybrid models could stretch up to three-four months at the booking rush. Maruti is also said to be using a clear booking tracking system
The Environmental and Regulatory Landscape
Apart from benefits for consumers, the fuel efficiency enhancements comply with India’s more and more strict emission regulations and green requirements.
Lower carbon emissions from the upgraded Grand Vitara are in line with the Cabinet’s pledge to lower carbon intensity and embrace more environmentally friendly modes of transport.
Life-cycle emissions show the Sorento 1.6 T-GDi Hybrid is around 25% cleaner than the equivalent performance petrol SUV. This compromise can be critical if applied to the thousands of vehicles, their life time in service.
Furthermore, hybrid technology acts as a stepping stone between traditional Internal Combustion engines and all-electric vehicles — a practical approach considering the charging infrastructure scenario in India.
Maruti is effectively conditioning the Indian market to accept an electrified powertrain by introducing and explaining its benefits, making the market (both buyer and seller) ready for 100 percent electrification in the future.
Market Response and Prospective Consequences
Early market feedback indicates that this strategy is hitting home very well with customers,” said Maruti. Pre-launch interest in the Delta5Drive has exceeded forecasts by 35% and is then particularly high among visitors to city sites where fuel costs and environmental issues are a source of much concern.
The development has also sparked a reaction from rivals, where it is believed at least two of the big name manufacturers are now re-evaluating how much they are asking for their products and what features are packed in to their forthcoming models.
Industry watchers believe Maruti’s move might start a realignment of the price-performance quotient in the mid-sized SUV segment.
Onward, Maruti looks on course to get its hybrid technology to more cars in its range. At least two more models in the next 18 months will offer strong hybrid options, according to sources briefed on the company’s product roadmap, causing potentially similar headaches in their respective segments.
For consumers this could only really be a good thing – better technology at affordable prices; lower cost of ownership; and an increased uptake in greener means of transport. The stakes are clear, and rivals have two options: innovate fast or cede market share to Maruti’s more and more attractive value proposition.
As the dust begins to settle after this announcement, it is evident that Maruti’s masterstroke with the Grand Vitara will now help Indian consumers demand more in their cars – better fuel efficiency, more gizmos, at keener and keener prices. In the process, they may have reshaped the competitive market dynamics of India`s auto industry for years to come.