Chevrolet's Enjoy to take on Maruti's Ertiga

General Motors, the US-based automobile major, on Thursday launched a multi-purpose vehicle, the 'Enjoy', at an aggressive entry price of Rs 549,000 for the petrol variant (ex-showroom, Delhi) and Rs 669,000 for the diesel variant, squarely taking on Maruti Suzuki's hot selling Ertiga.

The base variants of Enjoy for the petrol and diesel versions are priced Rs 49,000 and Rs 70,000 cheaper than the Ertiga (tagged between Rs 598,000 and Rs 870,000).

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Lowell Paddock, president and managing director, General Motors India, said: "The Enjoy will compete in one of the fastest growing segments in India. We expect this model will be a success, considering its attributes and pricing."

GM expects to sell at least 3,500 units of the Enjoy a month, still much lower than the Ertiga average of 6,365 units a month.

Enjoy has a local content of 60 per cent, compared to Ertiga's over 85 per cent. However, Paddock said work was on to raise the indigenous content to 75 per cent over the next few months.

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The MPV is based on a platform developed by GM's Chinese partner, Shanghai Automotive Industry Corporation. The vehicle has been re-engineered and re-designed to meet Indian conditions.

While Enjoy scores over the Ertiga in pricing, experts said the fuel efficiency offered could be a cause of concern.

The petrol version delivers 13.7 kmpl, as compared to Ertiga's 16.02 kmpl. The diesel Enjoy offers 18.2 kmpl, considerably lower than the 20.77 kmpl delivered by the diesel-powered Ertiga.

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However, experts said Enjoy offered more space than the Ertiga, for consumers ready to compromise on mileage.

Deepesh Rathore, managing director at advisory firm IHS Automotive, said, "Enjoy is a strong contender to the Ertiga.

The product has decent styling and better interior space; the pricing is aggressive. But customers do not have as much confidence in the Chevrolet brand in India as in Maruti Suzuki. Maruti cars are (also) more fuel-efficient.

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But what Enjoy loses on fuel efficiency, it makes up by price and more space. "GM's product intervention comes at a time when Ertiga has helped Maruti to show healthy financial numbers, with sales of 76,375 units in 2012-13.

The utility vehicle (UV) segment constitutes 21 per cent of total passenger vehicle sales and grew by 52 per cent in FY13, even when the total market grew only 2.15 per cent.

As much as 14 per cent of the UV segment sales comes from only one model, the Ertiga, which is why GM wants to be there.