Maruti Aims Big With Ciaz, But Analysts Cautious
NDTV | Written By: Varun Sinha | Updated On: October 07, 2014 16:27 (IST)Ads by Google
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Maruti Ciaz
The Ciaz is likely to be a big success if one looks at the number of bookings it has received in the run up to the launch. Maruti said it received 10,000 bookings for Ciaz even though prices for the sedan were revealed only yesterday.
Analysts say the Ciaz has an edge over its competitors in the following areas,
1) The Ciaz is aggressively priced with the petrol model starting at Rs. 6.99 lakh and the diesel model starting at Rs. 8.04 lakh. Compare that to segment leader Honda City, which costs Rs. 7.2 lakh (petrol) and Rs. 8.38 lakh (diesel). (Ex-showroom prices)
2) The Ciaz also scores on fuel efficiency, which plays a key role in influencing buying decisions of Indian customers. Maruti Suzuki claims that the Ciaz (diesel) returns 26.21 km per litre, a little more than its rival Honda City's (diesel) 26 kmpl.
3) The Ciaz also scores over its rival in terms of size and ground clearance. In terms of quality, it is Maruti's best sedan offering so far, analysts say. The Ciaz is classier and roomier that its replacement (SX4).
However, the biggest drawback of the Ciaz is its under-powered engine, Mahantesh Sabarad, Deputy Head of Research at SBI Capital Securities told NDTV. (Watch the full interview)
Ciaz's 1.4L petrol engine has the lowest power rating in the segment, while its diesel engine has noticeable lag as compared to its competitors. (Read the review here)
According to Mr Sabarad, the Ciaz is a good attempt to reach out to premium customers, but it will not be a volume spinner for Maruti. The Ciaz may end up selling 3,000-4,000 units per month, he added.
Mr Sabarad also pointed that the Ciaz has been launched at an "invitation pricing" and prices will be revised upwards in 2015.
Anil Sharma, a senior analyst at IHS Automotive told Reuters that the Ciaz is a competent model, but estimated its full-year sales at about 26,000 units (2,000-2,500 units per month).
In comparison, segment leader Honda City sold over 7,000 units per month consistently post its launch, before sales took a hit because of production issues.
In a report, analysts at Maybank say, "Our FY15F volume of 1.3 million cars for Maruti Suzuki does not factor in any major upside from Ciaz." The brokerage retained its "hold" rating on Maruti shares (target Rs. 3,000).
Sales of mid-size sedan cars in India, the world's sixth largest passenger vehicle market, fell nearly 23 per cent to 1.55 lakh units in 2013-14 fiscal year from 200,176 units a year ago. However, analysts expect sales to pick up this year after three consecutive years of sluggish growth.
Maruti Suzuki shares closed 1 per cent lower at Rs. 2,938.70 on the BSE. The stock underperformed the broader auto sub-index of the BSE, which closed 0.83 per cent lower.
Ajeet Kumar
PGDM 3rd SEM
maruti suzki this year after three consecutive years of growth and maruti suzki high hops from ciaz
ReplyDeleteThe Ciaz is the petrol model and the diesel model Compare that to segment leader Honda City, the maruti is the best
ReplyDelete