Hallucinations of the Uninitiated

                                                                                         

The year 2008 may be the final year for the ubiquitous Maruti 800. The government's safety norms are coming up in 2008 and the 800 cannot meet the crash test norms. Bidding adieu in 2008 - for similar reasons - will also be the Maruti Omni van and the Esteem sedan. Amongst other cars on Indian roads, the Ambassador cannot meet the crash test norms and will finally say its last hooray in 2008.

Coming back to the M800, the car still sells about 5,000 units a month. That's a significant number, more than the total sales of a number of companies and is significant also because Maruti probably has 50-60% profit on every unit sold, having amortized every machinery, tools and dies, jigs and fixtures for the car.

So, does it make sense for Maruti to continue with the 800?

Apparently not. The whiff that I am getting out of Maruti's cooking pot is that it is the final goodbye for the 800 in 2008. The car will require heavy modifications in order to meet the crash test norms, something that Maruti does not want to work on. The 800's dies are beyond their use by date and they have already been refurbished. A second overhaul will be expensive and Maruti is not very keen to do that. So my bet is on the 800 limping till 2008 and then signing off.

The Esteem will sign off too and will be replaced by the Swift sedan. That's a product worth waiting for as the three-box version will be powered by the Swift's capable powerplants.

Also signing off will be the Omni. This should be replaced by the Versa which may meet the crash-test norms, barely.

And that is why the new Automotive Mission Plan (AMP), as unveiled by the Prime Minister recently (not the 46 page one originally drafted and available for download on the net, but the 55 page one with the last minute changes actually released by the PM) is so important.

The Versa is shorter than 3.8 metres so will benefit from excise duty reductions, bringing the price down. Put in the diesel engine from the Swift and you have a van that will thrash the living daylights out of the Indica taxicab.

It has all started to make sense to me now.

Or maybe I am just hallucinating.

About the author:
Deepesh Rathore
Research Editor
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