Tata Gives Suzuki Headaches
Suzuki has a little bit of a problem keeping up with the demand in the frisky Indian market. If you can’t deliver, you lose market share. Suzuki’s share of the Indian market already slipped below their usual 50 percent. And guess who’s giving Suzuki headaches? Tata.
When Suzuki CEO Osamu Suzuki returned to Japan from India in September 2009, he said the Nano is “one fine vehicle.” Thankfully, that wasn’t quite the case.
The Nano is a hot item in India. It has a tendency to go up in flames. On August 27, another Nano caught fire in New Delhi – “at least the sixth such incident involving the model,” says The Nikkei [sub]. But it doesn’t stop people from buying.
Between April and June, Tata sold 84,000 cars in India, up 49.4 percent from the same quarter of last year. They even bypassed Hyundai. Tata has lly finished their Nano factory, and they are cranking them out to meet with pent-up demand for an affordable car.
84,000 units from Tata are not anywhere close to the 384,181 cars Suzuki sold in the April to July period. But Suzuki is taking note. Tata has a car that costs half of the price of Suzuki’s cheapest model, the Alto. Tata has a brand-new factory, Suzuki may have a new factory by 2012.