Will the 7-seater WagonR eat into sales of other Maruti models such as the Ertiga?
The entry of the 7 seater WagonR has also brought into question what impact it could have on Maruti Suzuki’s current product portfolio, especially the Ertiga. Industry analysts argue that selling the smaller, more affordable seven seater package could attract buyers who would have otherwise gone for the larger MPV. It may result in internal competition in Maruti's range, which may cause problems to match the sales strategy, and profitability of different models. However, proponents of the move reason that the 7 seater WagonR could actually fill in a different segment of buyers, who may want city maneuverability over outright space. Some of the discussion also revolves around whether this is a reaction to a shifting consumer preference, or a preemptive strike against competitors entering the compact 7-seater market. This debate also goes on to whether it will have an impact on Maruti's future product planning, dealer strategies and even their marketing plans of various models targeted to family buyers.
It won't hurt Ertiga sales much I think. An Ertiga is bought by people who want that extra space and comfort. The 7 seater WagonR is for a different crowd, those that occasionally need extra seats but don’t want a big car.
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