Innova to lose huge business to Ertiga

It appears the leading cars manufacturing company Toyota is going to lose a very big deal to its close competitor Maruti Company. Telangana government has decided to purchase 1500 Innova cars and 1600 motor bikes for its police department. It allotted Rs.300 and even purchased few vehicles recently. However, Maruti Cars entered the race after the government all set to purchase rest of the vehicles and puts in big dilemma.

Ertiga Model car that is Rs. 6 lakhs cheaper than Innova and also fuel efficient. While, Innova car costs Rs.16 lakhs, Ertiga comes for just Rs. 10 lakhs only, with same seating capacity and facilities. Maruti Car Company representatives presented their Ertiga car before the higher officials of government and police officials and explained them the huge difference between the price and mileage of the two cars. If, there is scope for saving Rs 6 lakhs on each unit, then obviously Telangana government may be tempted with the offer.

If so, it would be big jolt for Toyota to lose a huge business to Maruti Company.But, the question is how the state government failed to inquire in the market about the available models and their prices before zeroing upon a vehicle that is Rs.6 lakhs costlier than Ertiga model.