Sunday, July 08, 2007

Maruti Takes On Honda With Its New Grand Vitara

It's a fight between the two Japanese auto makers - Honda and Suzuki. Maruti is launching the new Grand Vitara, it's SUV that will directly compete with the Honda CRV. Maruti is trying to tie-up the loose ends in its SUV and premium sedan segments, to take Honda's products head on.

After the SX4, Maruti is ready to drive into another Honda stronghold. It will soon launch its SUV, the new Grand Vitara to take on the Honda CRV. This is Maruti's second experiment with the Vitara.

It first launched the Vitara in 2003 but sold a paltry 380 cars. Compare that to the Honda CRV which has sold more than 7,400 units since its launch in the same year. Even the Hyundai Tuscon has sold 1,626 units since its launch in 2005. Maruti hopes the new two-litre Vitara, priced between Rs 14 to16 lakhs, will bring home the numbers.

Jagdish Khattar, MD, Maruti Udyog said, “Its small and compact and we are offering it at a price which will be very attractive.”

The new Grand Vitara, called the Escudo in Japan, will be available in both the automatic and manual versions. The new Honda CRV is a more powerful vehicle but also comes with hefty price tag of almost 18 lakhs. It will be interesting to see if Maruti can win over customers with an aggressive pricing strategy.

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