Maruti, two-wheeler majors unfazed by Nano

27 March 2009

The country's largest car maker, Maruti Suzuki,says that the newly-launched Tata Nano may have a marginal impact on the sales of its entry-level small car Maruti 800, but ruled out cutting its price.

''We don't have any plan to cut its price or enter the Nano segment,'' Maruti Suzuki India chairman R C Bhargava told reporters on the sidelines of the CII annual session in New Delhi.

Asked about the company's plans to counter the competition from Nano, he said, ''Nano is in a different segment and we are in a different segment.'' He, however, said Nano will help in expanding the market.

Just prior to the unveiling of the Nano at he Delhi Auto show last year, Maruti Suzuki had denied media speculation that it was ready with a small car with a 660cc engine, positioned below the Maruti 800, and priced at Rs1.5 lakh, India's largest passenger carmaker has said that the company had no such plans.

Will people continue buying the M800? Potential first time buyers feel that the the car would continue to sell because it had proved itself over the years as being a reliable and sturdy product though Suzuki might cut its price to reduce the price gap betwen the Nano and the 800 as a strategy to tempt customers away from the Nano.

Also existing car owners may look at the Nano as a  second car for middle class buyers for city driving.