This is Jagdish Khattar’s final fight. Before the 64-year old MD of Maruti Suzuki takes a bow this December, he wants to ensure that the largest passenger car maker in India maintains its lead. A decade ago, three out of every four cars sold was a Maruti. Entry of new players in the midnineties and more sophisticated models have eaten into its market share which is now 55%. With the top 15 automobile manufacturers in the world either expanding their presence in the country or in the process of setting up shop, the gap is narrowing. And Khattar is ready to shift into the top gear.
"This is the third phase for Maruti. The first phase for Maruti, between 1983 to 1993, was of dominance, while the second one saw global players enter the market making it competitive. Now that the industry has matured and more are players entering, we see new challenges in this third phase. We aim to make a million units by 2010 and we are gearing up for that," he says.
A second car plant, entry into the fast-growing diesel segment, new models, a revamp of the existing line-up and the stage is set for Maruti to take on the competition.
Beginning with the launch of new Zen Estilo last month, the entire range of Maruti models is set for an overhaul. It has also announced that it will be entering newer segments which include models above Baleno, its top-of-the-line model. The new Baleno and Grand Vitara are expected by mid-2007, while the next generation Alto and Esteem are not far behind. "We are working on a brand new car in Alto segment to be introduced in 2008-09. While the car is primarily for export to Europe, it will also hit Indian roads in due course," he says.
The company had stopped servicing the European market since September 2005, as bulging domestic demand had diverted exports from Europe. Besides, stringent emission norms in Europe would mean the Alto, which leads Maruti’s exports, would have to undergo major changes.
Maruti has increased its exports to non-European countries by more than three times. Three years ago, exports to non-European regions were around 12,000 units. They went up to about 22,000 last year, and this year it will export about 38,000-40,000 cars.
"Once the new model comes and we resume our exports to Europe, we are looking at total exports of over 1,60,000 units," Khattar says.
"This is the third phase for Maruti. The first phase for Maruti, between 1983 to 1993, was of dominance, while the second one saw global players enter the market making it competitive. Now that the industry has matured and more are players entering, we see new challenges in this third phase. We aim to make a million units by 2010 and we are gearing up for that," he says.
A second car plant, entry into the fast-growing diesel segment, new models, a revamp of the existing line-up and the stage is set for Maruti to take on the competition.
Beginning with the launch of new Zen Estilo last month, the entire range of Maruti models is set for an overhaul. It has also announced that it will be entering newer segments which include models above Baleno, its top-of-the-line model. The new Baleno and Grand Vitara are expected by mid-2007, while the next generation Alto and Esteem are not far behind. "We are working on a brand new car in Alto segment to be introduced in 2008-09. While the car is primarily for export to Europe, it will also hit Indian roads in due course," he says.
The company had stopped servicing the European market since September 2005, as bulging domestic demand had diverted exports from Europe. Besides, stringent emission norms in Europe would mean the Alto, which leads Maruti’s exports, would have to undergo major changes.
Maruti has increased its exports to non-European countries by more than three times. Three years ago, exports to non-European regions were around 12,000 units. They went up to about 22,000 last year, and this year it will export about 38,000-40,000 cars.
"Once the new model comes and we resume our exports to Europe, we are looking at total exports of over 1,60,000 units," Khattar says.
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