UNPERTURBED by the deepening stagnation in the Indian automobile sector and the controversies surrounding its own affairs, Maruti Udyog Limited (MUL) is once again on the launching block, barely a month after it unveiled its new-look Maruti 800 car.
An upgraded model of the luxury car rolls out of the MUL stable
UNPERTURBED by the deepening stagnation in the Indian automobile sector and the controversies surrounding its own affairs, Maruti Udyog Limited (MUL) is once again on the launching block, barely a month after it unveiled its new-look Maruti 800 car.
This time, to take the cover off a brand new version of MUL's luxury car Esteem, which has been remodelled to match international standards and technological developments. This is the first time since the Esteem's launch in 1994 that the company has effected a full model change for the car.
"The new model is not merely a cosmetic change but the result of two years of research by the two partners, Indian and Japanese, on all aspects of the car," says managing director R.S.S.L.N. Bhaskarudu. 'The 1998 Esteem', as the new model is called, has been designed to match any other contemporary car in the world in its segment, he says.
According to the MUL managing director, the new model removes the deficiencies of the Esteem's earlier models and is being reinforced through enhanced styling, comfort, safety and performance features in accordance with the standards followed in Europe, US and Japan.
The exterior of the car remains more or less the same except for a few changes. While the front hood has been remodelled, the grille is now placed on the front hood instead of the bumper. The front bumper and headlamps have also been changed and indicators have now been moved to the headlamps cluster from the bumper. The car would, however, continue to have its old all-aluminium contemporary engine (ACE).
Internally, the new car has redesigned air-conditioning with a new compressor and larger speakers for the VX and AX models. The interior of the car also sports a new instrument cluster and panel with a new tachometer (to measure RPM) and redesigned seats for better space management.
The brakes in the new model have been redesigned with seven-inch boosters to give 35 per cent more brake impact. To provide more safety to the driver, it incorporates the collapsible steering column which is a standard feature in all developed markets. All changes, say company officials, have been incorporated into the new model to provide better ergonomics in line with contemporary models worldwide.
Not unexpectedly, the 1998 Esteem will be costlier with all its new fittings. While the new model is being priced slightly higher than the old model—an increase of Rs 5,000 for LX, Rs 10,000 for VX and Rs 11,500 for AX ex-showroom New Delhi—according to company sources, the actual cost increase for the 1998 Esteem, which is 91 per cent indigenous, was Rs 30,000. The remaining, says Bhaskarudu, would be generated from the company's own resources. According to him, invoicing for the new models had already started, as production for the earlier Esteem models have been stopped and stocks more or less liquidated.
The company has sold 9,300 cars in the current financial year so far and plans to sell 20,000 cars in the full year. While Maruti Udyog has been gearing up to face the challenges of competition with new, technologically advanced cars coming up, the market has belied all expectations. And in the face of a negative growth of over five per cent for the Indian automobile sector in the first three months of the current year, MUL would need more than superior models to deal with the situation.