Suzuki gears up to enter new segments

Suzuki, which is the majority shareholder in domestic car market leader Maruti Udyog, has said its fully-owned two-wheeler subsidiary, Suzuki Motor India, will venture into the fast-growing segments of high-powered motorcycles and gearless scooters.

SMILP will invest Rs 320 crore in capacity expansion and new launches, taking its cumulative investment in the country to Rs 550 crore.

The company now offers only two bikes, Heat and Zeus, both fitted with a 125cc engine and the new launches are expected to widen its product portfolio in the Indian market.

Said Satya Sheel, the company's managing director, "We will expand our capacities gradually in the Indian market to corner a double-digit market share in the next three-four years, first with the launch of ungeared scooters in the 125cc-150cc segment, followed by high powered bikes in over 150cc segment."

SMIPL, about a year since it launched its motorcycles in the country, has not been able to make much headway in the market. At present, it has a meagre 0.8 per cent share of the market.

SMILP, despite having an installed capacity to manufacture 100,000 vehicles, sold a little over half that number between April and December last year and 5,753 units in January 2007.

Its earlier technology partner, Chennai-based TVS Motor, sold over a million two-wheelers till December 2006.

Kutsumi Takata, the joint managing director of SMIPL, said, "The demand for high-powered bikes is increasing. Our premium bikes in the 150cc category and un-geared scooters will cater to the new generation and will be out in a few months after the feasibility studies are completed.

We are determining the right product mix for the Indian market in order to be a volume player in the long run."

Maruti likely to renew Maruti 800 with a brand new car

Maruti likely to renew Maruti 800 with a brand new car

India’s dominating automaker Maruti is rumored to be planning a brand new updated Maruti 800 for the Indian market.

The current car is more than 20 years old and has seen several upgrades both in the design and the engine design.

This new updated Maruti 800 model is likely to be launched sometime next year. India auto magazines have speculated that this updated model might be based on the concept model Cervo from Suzuki.

Maruti is also likely to launch a new car based on the 660cc small car being developed at Suzuki’s headquarters in Hamamatsu, Japan.

This car could become the next best selling model from Maruti and would take on the much talked about Rs. 1 lakh car from Tata Motors.

A market source has been cited as saying: “The company has started discussions with us for launching the completely revamped version of the over 23-year-old Maruti 800. The new car would look completely different from the existing one, but sell at the same price.”

Both of these models are expected to be contemporary looking all set to take the competition by surprise. Maruti has already shocked the market by launching to cool looking models with Suzuki Swift and Zen Estilo.

The magic is expected to continue in the coming years.

Suzuki aims to invest $1.6 billion in India by 2010

Suzuki aims to invest $1.6 billion in India by 2010

Japanese automaker Suzuki has said in a statement that they are planning to invest an additional 200 billion yen in its Indian venture by 2010.

The company would spend this money on expanding the capacities of its car and engine plants.

Suzuki has already invested 100 billion yen in the plants run by Maruti Udyog Ltd.

They are aiming to boost the manufacturing capacity of Maruti to 1 million cars a year from 630,000 now.

Maruti recently opened its fourth car plant with a manufacturing capacity of 1 lakh car per year.

Maruti Udyog Managing Director Jagdish Khattar spoke about the company’s plans for the coming years: “Suzuki made a commitment to India at a time when it was not fashionable to invest in India. This (new plant) marks the most important milestone in our partnership.”

The company is the leading automaker in the Indian market and holds a majority of the small car market share.

Suzuki commits 300 bn yen for India

Reiterating his commitment to India, Japanese auto major Suzuki Motor Corporation (SMC) chairman and Ceo Osamu Suzuki on Tuesday committed an investment of 300 billion yen (about Rs 11,000 crore) for the company`s various operations here in the next three-four years.

"So far we have invested about 100 billion yen. Going forward we are investing an additional 200 billion yen up to 2010," Suzuki said, while inaugurating Maruti Suzuki`s fourth assembly plant here.

The Japanese auto giant has already announced an investment of about 250 billion yen (Rs 9000 crore) for Maruti Udyog Ltd (MUL) and Suzuki Powertrain India Ltd (Spil), which would include capacity expansions, development of new models, extension of research and development.

Besides the fourth assembly plant for MUL, the diesel engine and transmission plant for Spil, was also inaugurated today.

Suzuki said the group would be investing 20 billion yen in its two-wheeler venture in India--Suzuki Motorcycle India Pvt Ltd, the plant for which was also inaugurated today. An additional 30 billion yen will be for overall other capital expenditure.

He said the group was committed to its Indian venture and would continue to take the leadership role in motorisation of India and was aiming to sell one million cars in the country by 2010.

On the issue of technology transfer, Suzuki said SMC would pass on the much talked about gearbox technology 100 per cent to MUL.

"SMC has 54 per cent stake in Maruti and there is nothing to hide. It is not a rival company, therefore, we are transferring technology to the extent of 100 per cent," he said.

He said Spil, the joint venture of SMC with MUL, in which SMC has 70 per cent stake and rest with the latter, would be manufacturing transmissions for one million vehicles by 2008.

Spil`s plant will have an initial capacity to manufacture 1 lakh diesel engines a year and is being scaled up to 3 lakh engines per year by 2010, with a total investment of Rs 2,500 crore.

The fourth plant of MUL, besides manufacturing its premium hatchback Swift, would manufacture an export model expected to be launched in 2008-09.

The car assembly plant will have an initial capacity of 1 lakh cars per year, which will be scaled up to 3 lakh cars per year. The company has earmarked a total investment of Rs 2,500 crore in this unit by 2010.

Both MUL`s fourth car plant and Spil`s diesel transmission facility are located within the same campus in Manesar, extending over 600 acres.

With the inauguration of the new plant, MUL will have an overall total capacity of 7.3 lakh per annum at present from its Gurgaon and Manesar plants.

Not only looking at the domestic market, the company has also set a target of exporting 1.5 lakh units of cars from India to global markets, including Europe.

Similarly, Spil is also set to start exporting its diesel engine to Suzuki`s plant in Hungary this year.

Maruti Suzuki Rally Desert Storm 2007 flagged off

Fifth Maruti Suzuki Rally Desert Storm 2007 was flagged off from the National Stadium in New Delhi on Wednesday.

The four-day rally, aimed at opening more avenues for motor sport enthusiasts, will cover a distance of over 1300 kms, crossing Bikaner, Jaiselmer, Pushkar, Sambhar and conclude at Jaipur on February 18.

"The aim of this rally is that motor sport enthusiasts should get a chance to do something especial who have interest in motor sports. There are two categories one for a common man and other for professionals," said Shashi Kapoor, Deputy General Manager, Maruti Udyog Limited.

"As far as the special stages are concerned, they are almost similar to the last year except that we are changing the direction. We have also started the Asia zone this time," said Raj Kapoor, organiser, Northern Motor Sport.

The rally has 13 competitive sections traversing over 400 kms. Over 61 teams are participating in the car category including 30 professional rallyists and 31 amateurs.

At least 22 biker teams are also participating. To add to the rally, there are women and husband- wife teams too.

With a prize money of rupees 6.8 lakhs, the fifth Maruti Suzuki Rally Desert Storm is the largest prized money motor sport in the Indian National Motor sport this year. (ANI)

Maruti's road to fame

It is by now clichéd to talk about Maruti Udyog's contribution to the motorisation of India. And yet it is inevitable that a bit of nostalgia creeps in every time a major milestone comes by for the company.

Maruti has had a chequered past and during its nearly 24 years of staying on top of the Indian automobile industry, it has also had its fair share of controversies.

Next week will officially mark another key page in Maruti's diary. Senior company officials, including Mr Osamu Suzuki, Chairman and CEO, Suzuki Motor Corporation, Mr Jagdish Khattar, Managing Director of MUL, and Mr S. Nakanishi, Chairman, MUL, will officially inaugurate two new plants of the company.

One of the facilities to be inaugurated is the company's fourth assembly plant and the other is the diesel engine manufacturing plant. The new plants will enable Maruti to launch at least three new models in the next two years and help it make bigger inroads into the diesel passenger car market.

With an investment of Rs 2,500 crore, the fourth car assembly plant is rated among the best Suzuki plants worldwide. The plant is said to be future ready and is designed to produce world-class vehicles. It has started with a capacity of one-lakh cars per annum, which would be scaled up to three lakh cars by 2010. Maruti also expects to begin export of about two lakh cars per year from this assembly plant.

Maruti and Suzuki's first diesel plant is designed to produce state-of-the-art diesel engines and transmission systems. This plant would also entail a total investment of Rs 2,500 crore. Besides serving the Indian market, it will also be an export base for Suzuki's operations worldwide. This plant will have a capacity of one-lakh engines per annum to be expanded to three lakh units by 2010.

On the eve of the inauguration of the two plants, here are a few of the lesser-known facts and figures about the Indian passenger car market leader that we complied:

In December 1983, when Maruti came into being, the Indian car industry had stagnated at an annual sales volume of 40,000 cars.

MUL manufactured 852 units of the Maruti 800, its first and only car during 1983-84, the year of the first plant's inauguration. Later in 1986-87 Maruti sold 82,206 units in the domestic market and exported 102 units.

During 1994-95, Maruti sold over 1.85 lakh cars in the domestic market and the total market then was just a little over 2.1 lakh units.

In comparison, in 2005-06 MUL sold 5,27,038 units in the domestic market and exported 34,782 cars. The total market size during the year was 11.4 lakh units for cars and utility vehicles.

For a company as mature as MUL, it witnessed an unprecedented improvement in productivity of 46 per cent during the last three years. In a factory with an installed capacity of 3.5 lakh units, the company manufactured close to six lakh units in 2005-06.

MUL is ranked at 91in the Forbes' list of the World's Most Respected Companies.

Maruti Udyog is Suzuki's biggest operation outside Japan.

Suzuki Motor Corporation sold 6.95 lakh cars in the domestic market (Japan) and exported 3.7 lakh units during calendar year 2006. Maruti Udyog, on the other hand, sold 5.96 lakh cars in the domestic market (India) and exported 33,207 units during the same year. Will the subsidiary beat the parent soon?

Maruti raises prices of some cars

Maruti Udyog Ltd has raised prices of some of its models by up to 12,000 rupees to help offset higher costs, it said. Maruti, a unit of Suzuki Motor Corp, said a major portion of the cost increase - effective from Feb 1 - will go toward better dealer margins in the fast-growing market.

"Over the recent past, there have been significant increases in input costs of the company as also the operational costs of its dealers," Maruti said in a statement late on Thursday.

"The company has decided to pass on a part of this burden to its customers."

Prices of the Baleno sedan and Gypsy King multi-utility have been raised by 12,000 rupees, while the Wagon R hatchback and newly launched Zen Estillo will cost 3,500 rupees more, it said.

The mini Maruti 800, Omni, Alto, Esteem mid-size and Swift petrol variant will cost 2,000 rupees more.

Maruti, which has nearly half India's market of mostly small cars, last raised prices in August 2006 by up to 5,000 rupees.

Maruti driving Suzuki numbers

Maruti Udyog, the country's largest car producer, is turning out to be the jewel in the crown of its Japanese parent, Suzuki Motor Corporation. It contributed over 29 per cent of Suzuki's net profit in April-December 2006, though it accounted for less than 7 per cent of its turnover.

In 2004-05, Maruti represented just 14 per cent of Suzuki's profit.

Suzuki reported a profit of $479 million on a turnover (net of sales) of $18.65 billion during the nine-month period. Maruti, in comparison, clocked a profit of $253 million (Rs 1,113 crore) on a turnover of Rs 10,164 crore ($2.31 billion) during the period.

As Suzuki owns 54.21 per cent of Maruti, it took $137 million as its share of the profit. And this accounted for as much as 29 per cent of Suzuki's profits.

Experts said that Maruti's rising share in Suzuki's profitability has prompted the Japanese company to invest $2 billion (Rs 9,000 crore) in India over the next three years to increase its local production capacity to a million cars and make India a hub for its global requirements for small cars and compacts.

Amit Kasat, auto analyst at Motilal Oswal, said: "Maruti will continue to gain preference in Suzuki's global operations for the next four-five years owing to good volume growth and higher profit margins. The proportion of profit will further rise as Maruti will serve as the global manufacturing hub of small and compact cars for Suzuki with 30 per cent cheaper production costs advantage (to Japan)."

Maruti Suzuki sold record number of cars in January 2007

Maruti Suzuki sold record number of cars in January 2007

Indian automotive market continues to show impressive sales. The market leader Maruti Suzuki has said in a statement that they recorded highest ever monthly domestic sales for January at 62,248 vehicles.

This is a growth of 28.3 per cent over the corresponding month in 2006. This betters the company’s record of selling 61,141 vehicles in March 2006 after the budget resulted in massive discounts in car prices.

The company managed to sell 65,341 vehicles in January including 3,093 cars which were exported to other markets.

Maruti recorded a growth of 40.8 per cent in the C segment where they sell models including Omni, Versa, Alto and Wagon-R.

The A2 segment was the dominating market for the company as they sold 44,736 vehicles in January in this segment. Maruti has models like Zen Estilo and Swift in this segment.

Maruti also sold 2,615 units of Baleno and Esteem in the market in January 2007.

Maruti is overtaking Suzuki in production

When Osamu Suzuki-san came to India a few months ago, he challenged Maruti Udyog to beat the Japanese parent to become the largest Suzuki operation anywhere in the world. That milestone is in sight. In fact, it has already edged ahead, according to DNA Money data.

“We hope to cross the 7- lakh vehicle mark next fiscal,” Jagdish Khattar, managing director, Maruti Udyog, told DNA Money in an exclusive interview.

While Suzuki Motor Corp (SMC) is the third-largest automobile maker in Japan, Maruti is the largest car maker in India. And compared to an average 3% growth rate SMC has been registering in Japan year-on-year, Indian operations have posted much higher growth rates. During the last nine months alone, Maruti saw sales grow 16%.

If it still looks a lofty target for Maruti to achieve, here’s some math. Last fiscal, SMC sold 7.07 lakh vehicles while Maruti reported 5.61 lakh vehicle sales.

If the growth rate of each market is taken into account, SMC is expected to close 2006-07 at about 7.28 lakh vehicles and close to 7.5 lakh next fiscal. However, if Maruti continues with its good performance, then it may well end up selling close to 6.5 lakh units this year and take it closer to 7.5 lakh in 2007-08. So, Khattar’s wish could well come true. Khattar’s enthusiasm stems not only from the hard work his team has been putting in, but also from the boost in production capacity, with the addition of a second manufacturing plant last month.

But does India’s expected dominance in the Suzuki brand mean Suzuki would shift base to India? Khattar only smiled at the question, but his enthusiasm makes it clear that Maruti Udyog is poised to maintain its comfortable lead over all other car makers in India for at least some more time to come.

Which is perhaps why Suzuki has already committed Rs 9,000 crore in this country till 2010 and does not seem concerned over Nissan’s no-show on the other small-car project.

Suzuki Motors, Maruti to invest Rs2,500 crore

Suzuki Powertrain India Limited says it plans to invest Rs2,500 crore by 2010 to make its Manesar Plant a manufacturing hub for diesel engines and an the export base for subsidiaries across the world.

Suzuki Powertrain is a 70:30 joint venture between Suzuki Motor Corporation of Japan and Maruti Udyog Limited.

According to Arun Malhotra, chief general manager, strategy development and marketing, the Manesar facility will manufacture one lakh diesel engines annually, which would be ramped up to three lakh per annum.

send this article to a friend Maruti today launched the diesel version of its popular Swift, the petrol version of which sells around 5500 units per month, is being manufactured at the Manesar Plant.

Maruti likely to replace Baleno with a new car soon

Maruti likely to replace Baleno with a new car soon

Maruti is the India’s largest automaker. The company is working hard on overhauling their product range to feature some really exciting models.

First they launched Suzuki Swift to take on Hyundai Getz in the premium compact car segment. Then they replaced the aging Zen with a decent looking Zen Estilo model.

The company is now likely to replace the Baleno sedan with a brand new model expected to be based on the Suzuki SX4 model.

This new car is likely to be offered in both petrol and diesel variant. This would help the company take on both Ford Fiesta and Hyundai Verna in the Indian market.

Maruti has already launched the Suzuki Swift Diesel which is their only diesel offering at the moment and the first in a long time.

In other news, the company is also rumored to be considering updating the Grand Vitara car with Suzuki Escudo.

Maruti Swift priced at Rs. 4.66 lakh in city

Maruti Udyog Ltd. on Thursday announced ex-showroom prices in Bangalore of its new Maruti Suzuki Swift diesel model.

Company's chief general manager (marketing) Mayank Pareek told presspersons here that the base model of Swift LDi would cost Rs. 4,66,286 and the other model, Swift VDi, Rs. 4,94,795.

He said the price was only an introductory offer.

He refused to say how long it would last.

Compared to petrol variant, Swift Diesel would cost Rs. 68,000 more.

Although Mr. Pareek said the car was "most fuel efficient," he did not give the mileage figures. He said the company would rather leave it to a third party to assess.

He said the Swift diesel would be on par with its petrol variant in performance.

The smallest four-cylinder engine with five-injection technology had an electronic control system that would lead to homogenous combustion.

This made the engine silent. Vibration would be minimal.

The engine was introduced in India within months of its launch in Europe, making it the one with the most contemporary diesel technology.