Maruti Udyog Ltd's first multi-purpose vehicle (MPV) for the Indian market -- Versa -- has been priced between Rs 5.15 lakh and Rs 5.80 lakh (ex-showroom Delhi).
Three variants of Versa were launched in Delhi today amid much fanfare, with superstar Amitabh Bachchan -- who, along with his star son Abhisekh, is brand ambassador for the vehicle -- making an appearance at the launch ceremony.
The DX, DX2 and SDX variants of the Versa come with a price tag of Rs 5.15 lakh, Rs 5.45 lakh and Rs 5.80 lakh (ex-showroom Delhi) respectively. Another top-end variant priced around Rs 7-8 lakh is expected to be launched shortly. The version launched in India has been recently developed for the Japanese market, company executives said.
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Speaking at the launch, Bachchan said he was delighted at being attached to the biggest car company in the country. Versa, according to him, would combine both comfort of driving and the luxury of space. "When Abhisekh is not around, I would have both to myself," he said.
Maruti Udyog managing director Jagdish Khattar said the launch of Versa was aimed at tapping a virgin market for MPVs in a country. "In the past, we have launched products to create a new segment such as the M-800 and then the Zen. We are now attempting to create a new segment which will become popular among auto consumers in the future. We are confident this segment will grow and many more companies will join the race soon," he added.
Maruti expects to sell around 1,000-1,500 units of the vehicle every month, with sales growing at around 15-20 per cent after around six months, and as and when the car market comes out of the current sluggish phase.
Another senior executive of the company said Maruti will initially incur losses on the car (because of the low pricing) and a break-even cannot be expected until at least 60,000 units are sold. Taking into account the current projections, this should be achieved within three years.
Maruti has invested around Rs 360 crore in the Versa project. The cost would have been higher, but for the fact that the engine transmission technology being used in the vehicle is the same as that of the mid-sized car Esteem.
Khattar said he was hoping large scale migration of car owners from the B segment (dominated by Zen, WagonR, Santro, etc) of the market as well as the C1 segment which is ruled by the likes of the Ford Ikon. The MPV will be in direct competition with Toyota Qualis and there could be a cannibalisation on Qualis sales too. Khattar, however, declined to comment on the impact on competition.
Versa, Maruti's ninth product for the Indian market, is powered by a 1300cc MPFI (multi-point fuel injection) engine which delivers 82 brake horse power (bhp). It currently consists of 70 per cent localised content.