Maruti July Sales Up 25% yr/yr

India's biggest car maker, Maruti Suzuki India Ltd, said on Wednesday it sold 57,909 vehicles in July, up 25 per cent from 46,408 vehicles sold in the same month last year.

Maruti, 54.2 per cent-owned by Japan's Suzuki Motor Corp, sold 52,839 units in the domestic market, up 18 per cent from 44,653 units a year earlier.

Maruti, which is changing its name to Maruti Suzuki India Ltd, exported 5,070 units, up from 1,755 units last year.

Maruti Flaunts Suzuki Ties

Maruti Udyog plans to rename itself Maruti Suzuki India Limited to re-emphasise its Japanese connection as this will help it in global markets.

The board of directors of Maruti Udyog today approved a proposal to change its name.

The new name will come into effect only after it is approved by shareholders at the annual general meeting and it gets other regulatory clearances.

“In the new name, Maruti continues to have a predominant position. Maruti is one of the strongest corporate brands in the country in terms of awareness, recall, trust and customer care. A generation of Indians has grown up with this brand name,” a company release said.

The proposed name change will make the Maruti brand global by piggybacking on Suzuki’s image, the company said. “This international dimension in the company’s name will help Maruti when it expands in global markets,” it added.

For the quarter ended June 30 this year, Maruti has reported a higher-than-expected 35 per cent rise in net profit.

Cost cutting and strong sales helped offset volatile raw material costs and rising interest rates for Maruti.

The company, 54.2 per cent owned by Suzuki Motor Corp, said net profit rose to Rs 499 crore in the first quarter from Rs 370 crore in the same period a year ago.

Total income (net of excise) during the quarter rose 27.08 per cent to Rs 4,154.07 crore from Rs 3,268.77 crore in the same period a year ago.

Maruti’s sales rose 17 per cent to 169,669 units in the April-June quarter but the company feels it will be difficult to match its record domestic sales of 2006-07 as higher interest rates have dampened consumer demand.

Total expenditure during the quarter rose to Rs 3,356.03 crore from Rs 2,668.87 crore in the same period last year.

Raw material and component costs accounted for Rs 3,104.12 crore.

Maruti will launch a model for export to Europe in the next couple of years, building on its recent success in Afro-Asian markets. “Maruti is also preparing to become Suzuki’s research and development hub for Asia outside Japan,” the company added.

Maruti controls nearly half of the Indian market with the best-selling Alto and Swift hatchback, but is facing competition from Tata Motors, Hyundai, Honda, Ford and General Motors.

Maruti Posts Q1cProfit of Rs 5 Billion

Come September and India's largest carmaker will cease to be Maruti Udyog Ltd. The company steps up its new image campaign with a proposed new name Maruti Suzuki India Ltd.

The news came on the day it posted a fantastic set of numbers for its first quarter. The company stole the show with a Rs 5 billion net profit and sales also beat the street by a mile.

Besides, its the other income figure that is worth noting at Rs 2.23 billion up 55 per cent YoY. Maruti has also benefited as a result of its Yen imports from Japan and the fact that its high margin cars have sold well. Thats cars like the Swift, the Zen Estilo and the new SX4.

The bumper result and the fact that car sales grew 17 % in this quarter could mean that Maruti will now withdraw the discounts and incentives from its dealerships until the festive season next quarter.

Maruti Udyog To Be Known As Maruti Suzuki India

In line with its shareholding pattern Maruti Udyog Limited will be re-branded Maruti Suzuki India Limited. The board's proposal to change the name of the company that has the highest sales in the country is subject shareholder approval at the company's next annual general meeting and also that of the Registrar of Companies.

Since the name Maruti has a strong branding in the passenger car segment, Suzuki has decided to retain it in the new name that it proposes, and just substitute Udyog with Suzuki and add India.

According to the company, the word Suzuki in the name imparts an international dimension. Further Suzuki Motor Corporation being the parent company is a major player in the mini car market in Japan. It has recently positioned itself as a complete car maker with the success of its globally strategic models like Swift, SX4 and Grand Vitara.

The company says the new name would help launch Maruti vehicles in overseas markets. The company will be launching a model for European exports in the next couple of years and is also developing capabilities to become Suzuki's research and development hub for Asia outside Japan.

Meanwhile the company logged a total income of Rs4,154 crore during the first quarter send this article to a friend of this fiscal and a net profit of Rs499.6 crore and sold 169,669 units out which the domestic market accounted for 1,60,064 units.

Suzuki Splash To Debut At Frankfurt Motor Show

Suzuki is all set to make a big "Splash" with its next small car. CNBC-TV18 learns the Suzuki Splash will debut at the Frankfurt Motor Show in September this year.

Splash could be the next car from the Suzuki stable to hit Indian roads. It could be Maruti Suzuki's next big offering in the small car category.

Interestingly, 50,000 units of Splash could also be sold to Nissan, as per Suzuki's Contract Manufacturing agreement with its Japanese competitor. Nissan will sell the car under its own badge. CNBC-TV18 learns that Suzuki hopes to make a big "Splash" with this new model at the Frankfurt Motor Show in the second week of September.

Splash is expected to go on sale in Europe in early 2008. It will have a strong Indian connection as Maruti Suzuki will manufacture a large volume of the 1.3 litre diesel engine at its plant in Manesar.

Maruti's diesel engine plant has a capacity of three lakh units, of which one lakh units will be for the domestic market.

Splash will also be available in two petrol versions - 1 litre and 1.2 litre.

While the Swift does not enjoy the small car status, it is learnt that Splash could avail of the excise benefits, as its length is less than 4 m.

Maruti may price the car around its Wagon R, which comes with a tag of about Rs 3.50 lakh. Suzuki has an enviable launch rate with three new models hitting the market in three years across different categories.

With global majors lining up to hit the Indian small car market, the market leader may just have an ace up its sleeve.

Maruti Suzuki Monsoon Rally

The second Maruti Suzuki Monsoon Car Rally, organised by the Motorsports Association of Kerala, will be flagged off from the Ned Star Hotel, Nedumbassery near here, on July 28. The navigational TSD event, where drivers are required to cover a certain distance within a specified time, will run through Idukki, Kottayam and Ernakulam districts over two days on an undisclosed route.

Maruti Suzuki is the rally’s main sponsor while JK Tyre and Sri Lankan Airlines are the co-sponsors of the 550-km event.

The rally, which is approved by the Motorsports Association of India, will be run under three categories: professionals, novices and ladies. Some of the country’s top stars, including Lohit Urs and Girija Shanker will be seen in action in the professional class.

After covering Idukki and Kottayam districts, the cars will return to Nedumbassery. The next day, the rally will run on a coastal route, including Cherai, before winding up at Nedumbassery.

“With all the rain, the event should be a big challenge for the drivers,” said Deva Kumar, the president of the host club. “But the lovely scenery on the route should be a bonus.” For further details, contact club officials at 98470 47266 (e-mail: mail @motorsportskerala.com and littlehuts@yahoo.com).

‘India bound’ Suzuki Splash

Well folks, here they are the next Avatar of Maruti Wagon R or as it would be known as Suzuki Splash. The Splash is said to be the next version or upgrade of the Wagon R sold here in India and expect the launch to be in somewhere next year or later. Not soon, cuz Maruti Suzuki are battling meeting demands of the SX4 and the Swift Diesel.

The Splash is all set to be showcased at the Frankfurt Auto Show,. and Suzuki released some details on the cars, along with some pics of it. I share a few with you.

Customers will have the choice of three engines – two petrol and a diesel. The petrol units are 100% Suzuki designs, a 1.0-litre 3-cylinder unit producing 65 PS (48 kW) and a 1.2-litre 4-cylinder engine developing 86 PS (63 kW). Both are of advanced four-valve-per-cylinder design, offering a sophisticated combination of smoothness, low-end torque and fuel efficiency.

Diesel fans can choose the 1.3-litre common-rail direct injection engine available with a DPF (Diesel Particulate Filter). Producing 75 PS (55 kW), this 4-cylinder unit is manufactured by Suzuki at its new diesel engine plant in India under licence from Fiat Group Automobiles.

Well, thats enough clue on whats in store for India, A locally manufactured diesel engine and a fuel efficient petrol. They surely know how to treat their customers. Splendid !

Splash cannot be considered to be the successor of the Wagon R+, the enlarged version of the Wagon R which in 1993 was originally developed for the Japanese market, and later also introduced in Europe. “Based on completely different criteria, Splash’s design is mainly tailored to the requirements of European customers,” explains Toshihiro Suzuki, the project’s Chief Engineer. Splash comes with attractive styling, compact dimensions, responsive handling, very good build quality and a high degree of environmental compatibility.

The car shall also come with Suzuki’s standard set of safety features like ABS, airbags, brake assist,ASP, etc some of which may be trimmed for India, to keep costs into consideration. Also the engine & transmission options may vary for India for the petrol versions. This one’s going to be yet another winner form Suzuki, after SX4 and Swift.

Source: http://mutiny.in/

Subros Achieves Sale Of 2.5mn AC Systems To Maruti Udyog

Subros, the largest manufacturer in India for auto air-conditioning systems takes immense pride to announce the prestigious and long lasting relationship of Subros with MARUTI UDYOG LTD. at a press briefing today in the city. Subros has achieved a Landmark Sale of 2.5 million AC Systems to its Most Prestigious and Single Largest Customer "MARUTI UDYOG LTD."

The briefing was addressed by Mr. Ramesh Suri, Chairman-Subros Ltd.; Ms. Shradha Suri Marwah, Executive Director, Subros Ltd; Mr. DM Reddy, CEO-Subros Ltd . In today’s competitive global market, adoption of latest technology, high efficiency of operations and minimal response time have become a fundamental imperative for corporations to sustain their competitive advantage in market place. Subros has always been at the forefront in the industry to excel ahead of the rest. Subros is offering products that are known for their quality & reliability and with the support of its joint venture partner, Denso Corporation, Japan, which is the Global technology leader in this domain.

Addressing the press briefing Mr. Ramesh Suri, Chairman, Subros Ltd, elatedly shared, "It has been a long journey since the time we started Subros as JV with Denso and Suzuki, with an assembly unit way back in 1985. Ever since we have been catering to the needs of Maruti Udyog for the A/C units. It has been a long and fruitful association which has strengthened over time. We stand tall with such a remarkable feat today, due to the unrelenting support and guidance of Maruti. We hope for such a support in times to come and we thank Maruti for their sustained support and sharing a long lasting relationship of 22 years with us. We hope to continue our journey successfully."

Maruti has been associated with Subros from the initial phase of setting up the plant. The two entities were together in the times of the technology change over introduction of refrigerant gas R134a, or the implementation of productivity improvement systems like MPS, TPM etc. True to their values, Subros and Maruti have tried to reciprocate by way of providing Cost Effective and Quality Products & Services. Growth rates at Subros have been rising steadily year over year which is one indication of company treading the right path. It aims to jump to a capacity expansion of 1 million p.a from 7.5 lakh pa by next financial year.

Revitalised Vitara Back On The SUV Bandwagon

Suzuki launched the Grand Vitara in the Indian market a couple of years ago, but it didn’t quite cut it with the Indian consumer. But the Vitara is ready to take another shot at the urban SUV market with the new Vitara.

The old Vitara was a little boxy, this one is sleeker. It definitely belongs to the modern breed of compact SUV’s - slightly urbane, with soft roader slickness. The front gets a mesh grill and wraparound dual beam headlamps, larger flare wheel arches and a large integrated bumper. The riding waistline leads you to the rear, and that’s where the Vitara’s looks fall. The stacked up tail-lights are too loud for my taste.

Inside, the Vitara gets an all black appeal. Yes, you heard right, Maruti’s offering all black interiors for the Vitara. So after the SX4 campaign that said men are back, maybe the vvitara’s will say men in black!! To break the monotony there are splashes and dashes of plastic chrome. The meter on the dash that shows you time, temperature and fuel consumption really caught my fancy. Storage space isn’t lacking, thanks to the cubby holes for storage. The central console houses a neatly integrated CD player. However, I thought that the plastic quality is quite poor. Space wise the Vitara seats 5 – and really loses out by not offering a seven-seat option.

Now the interesting bits. Powering the Vitara this time is a leaner 2 litre V4 petrol engine. It is a bit of a step down from the old rubber shredding 2.7 - V6. But 119.5 bhp and 170 Nm of torque aren’t to be scoffed at either, especially when you realise that you’ll be able to clock lot more kms to the litre. The new V4 is also smarter, more sensitive to your style because of the drive by wire technology.

Despite the technology and V-design, this is not the most refined engine around. Put your foot down, it gets coarse and harsh. It also doesn’t have the punchy torque of the older Vitara. Now, don’t get me wrong its still quick but more sedate. After all, it does manage the 0-100 in 13.8 seconds. Not bad for a SUV. A five speed gearbox works in-sync with the engine to keep the momentum going, but you do need to flex your muscles to get the gear lever into place. If that bothers you, there is always the option of a hassle-free 5 speed automatic gearbox.

The new ladder frame and independent suspension give the Vitara a good ride handling compromise. As far as the handling goes, the Vitara corners well at high speeds and body roll is well contained. But the steering response is spot on. Turn this one into a corner and it’ll go exactly where you want.

This is an absolute leap forward from the earlier Vitara and it has been achieved by making the ride firmer than before. This has made the back seat experience better - by minimizing the bouncing around while still managing to soak up bad roads reasonably well.

Now the real test of an SUV is in its mud raking ability – and the verdict is that it can off-road, and pretty darn well. It’s loaded with an all-time 4-wheel drive with options for 4-wheel high for light off-roading and 4-wheel low for the seriously sticky situations. Which means you can take the Vitara to your farmhouse, down to the lakeside, into a field, and onto hilly terrain with ease.

However when you get back onto tarmac, you may feel that some field mice have hitched a ride, gauging by the squeaks on your car!. The Vitara I tested had notched around 900 kms but sounded like it had done a whole lot more.

Maruti has had a spate of launches this year. With the SX4, they broke the small car manufacturer mould, now with the Vitara they’ve taken it one step further. Suzuki has a history of making great compact SUV’s. The Gypsy was a rage in India, and the Jimny, Samurai and Vitara have done well worldwide.

I think the main reason the Vitara didn’t do well in India was because of its price. Well Maruti have got that right this time - at Rs 13.8 lakhs ex-Delhi or a 16.5 lakhs on-road for the Manual version in Mumbai. It’s a great buy and with the backing of the Maruti brand there will be a lot of eyeballs turning in this direction. Rightfully so.

Hakuhodo Percept Bags Creative Duties Of Maruti's Escudo

Maruti Udyog, which has recently launched the new Grand Vitara, the Escudo, has awarded the creative duties to Hakuhodo Percept. Escudo is the latest global offering in SUV segment from its parent, Suzuki Motor Company (SMC).

Contract Advertising was handling the creative duties of Grand Vitara, before it was phased out in December 2006. The company might be less ambitious in advertising the Escudo, as compared to the SX4, the reason being that the SUV market is limited to a niche audience, compared to SX4, which segments itself for mass consumption.

The new Grand Vitara, built on a new platform, is the third-generation Vitara offered by SMC. However, the Grand Vitara, known as Suzuki Escudo in Japan, will not be manufactured at any of the Maruti factories in India. It is being imported from SMC Japan as a completely-built unit. Powered by a 2-litre, variable intake system (VIS) engine, it will be available in nine colours and two variants — automatic and manual drive.

SUV's are picking up pace in the India market with growth this year estimated at well over 50% against last year. In volume terms, it would translate into a cool 1 lakh vehicles in 2007. The new Grand Vitara will be pitched against SUV brands like Honda CR-V, Ford Endeavour, Hyundai Tucson.

Maruti has a roster of agencies that handle various brands for the company - O&M, Lowe, Hakuhodo Percept and Capital Advertising.

Maruti, Renault's New Models Boost India's June Car Sales 16%

India's passenger car sales rose in June at the fastest pace in four months as Maruti Udyog Ltd.'s new SX4 sedan model and Renault SA's Logan attracted more buyers.

Car sales rose 16 percent to 94,002 vehicles last month from a year earlier, the Society of Indian Automobile Manufacturers said in a statement in New Delhi today. Sales in the three months ended June 30 rose 13 percent to 275,147 cars.

India's carmakers are introducing new models and offering discounts on older variants to entice buyers as banks set interest rates at eight-year highs. Auto sales have gained in eight of the past 10 years as economic expansion enables more people to afford an automobile in the country.

"New models are pushing car sales," S. Ramnath, an analyst at Mumbai-based SSKI Securities Pvt. said in a phone interview today.

Maruti introduced the SX4 car on May 7, its first new sedan in eight years to lure drivers from smaller hatchbacks. The Indian unit of Suzuki Motor Corp. has a two-week waiting list for the model.

The company, which controls half of Asia's fourth-biggest automotive market, has introduced five new or upgraded models in the past 12 months to win customers. Maruti's car sales gained 27 percent to 47,783 units last month.

Indian sales of General Motors Corp., which introduced its first minicar in the country in April, more than doubled to 3,229 units. Mahindra & Mahindra Ltd., which introduced Renault's Logan in April, sold 2,380 sedans, the statement said.

Demand is growing even as interest rates rise. More than half of the vehicles sold in India are bought on credit.

Banks have increased lending rates by between 200 basis points and 250 basis points since December. State Bank, India's biggest commercial bank, said on April 7 it will charge its best borrowers 12.75 percent, the highest rate since April 1999.

This has led Maruti and the local unit of Toyota Motor Corp. to offer discounts and subsidize interest rates to lure buyers.

Cheapest Car May Create Tough Problem

TATA Motors is reportedly planning to launch the world’s cheapest car soon.

The Indian company told the Financial Times that the vehicle would sell for around $2 500 (R17 825), versus about $4 000 (R28 520) for the current low-price champ, Suzuki’s Maruti 800.

India’s gross domestic product per capita is about $3 700, so cheaper vehicles are certainly one key to expanding the market. (The vehicle won’t meet European safety norms, according to the report.)

But whether putting tens of thousands more vehicles on Indian roads is a good idea remains to be seen.

First of all, there’s the question of whether there’s adequate road infrastructure or even parking in the country’s huge, and crowded, cities.

Second, there is the rather tricky matter of greenhouse gases that hardly need an increase. – (wheels24.com)

SX4 Loses Lead Over City In 2nd Month

Honda City has reclaimed the leadership position in the mid-size car segment by overtaking Suzuki SX4 in June. The SX4 had made an impressive debut in May climbing to the number one position in the first month of launch, but this turned out to be a temporary surge.

Making a comeback, the Honda City sold 2,656 units in June as against 1,975 units of SX4. In May the SX4 had outnumbered City sales by about 162 units. During that month, the SX4 sales stood at 3,000 units as against Honda City’s sales of 2,838 units.

“It's very early to judge which car would continue to have leadership position. Generally it takes three to four months for getting sales stabilised. In the first month SX4 did well mainly because of novelty factor. Whatever be the sales tally of the two cars, Honda City is a much stronger brand than the SX4,” said Pradeep Saxena, senior vice president, TNS Automotive India, an automotive research firm

Maruti attributes lower SX4 sales in June to a planned maintenance shutdown. “Our plant had shut down for eight days for maintenance in June leading to supply constraints. We have at least one month waiting period for the SX4. We rolled out 2,000 units of the SX4 in June and have sold all,” said an MUL spokesperson.

Incidentally, Honda cites a similar reason for less sales in May. "For maintenance, our plant was shut for five days in May leading to lower production and hence lower dispatch to the dealers," said Honda Siel Cars India (HSCI) senior sales general manager Jnaneswar Sen.

Maruti Takes On Honda With Its New Grand Vitara

It's a fight between the two Japanese auto makers - Honda and Suzuki. Maruti is launching the new Grand Vitara, it's SUV that will directly compete with the Honda CRV. Maruti is trying to tie-up the loose ends in its SUV and premium sedan segments, to take Honda's products head on.

After the SX4, Maruti is ready to drive into another Honda stronghold. It will soon launch its SUV, the new Grand Vitara to take on the Honda CRV. This is Maruti's second experiment with the Vitara.

It first launched the Vitara in 2003 but sold a paltry 380 cars. Compare that to the Honda CRV which has sold more than 7,400 units since its launch in the same year. Even the Hyundai Tuscon has sold 1,626 units since its launch in 2005. Maruti hopes the new two-litre Vitara, priced between Rs 14 to16 lakhs, will bring home the numbers.

Jagdish Khattar, MD, Maruti Udyog said, “Its small and compact and we are offering it at a price which will be very attractive.”

The new Grand Vitara, called the Escudo in Japan, will be available in both the automatic and manual versions. The new Honda CRV is a more powerful vehicle but also comes with hefty price tag of almost 18 lakhs. It will be interesting to see if Maruti can win over customers with an aggressive pricing strategy.

LIC Not Guaranteed Board Position In Maruti

The Life Insurance Corporation of India, which is set to become the second single largest shareholder after parent Suzuki Motor Co in Maruti Udyog Ltd, may not necessarily be guaranteed a position in the auto maker's Board despite its 14.5 per cent stake.

"As per article of association there is no guarantee that any shareholder holding above 10 per cent becomes eligible for a Board position," Suzuki Motor Co Chairman and CEO Osamu Suzuki told reporters here.

Asked if SMC would offer LIC a board position, Suzuki declined to comment.

LIC had increased its stake in the country's largest carmaker to 14.5 per cent from 8.1 per cent when the government divested its 10.26 per cent residual stake in the company earlier this year.

In May, LIC had cornered 1.3 crore shares of the total 2.96 crore that were put on the block by the government to fully exit from the most successful car venture of the country.

Although, LIC has got all other necessary approvals for increasing its stake in MUL, it still has to get the final nod from shareholders of the carmaker at the annual general meeting to be held in September. Actual transfer of erstwhile government shares to LIC will take after the AGM.

Last year when the government offloaded 8 per cent stake in Maruti, LIC had cornered 1.68 crore shares aggregating to five per cent of the total equity.

MUL's share prices closed at Rs 771.35 on the BSE today, up Rs 28.25 or 3.80 per cent from yesterday's close.

Honda City Or Maruti Suzuki's SX4? Who's Winning?

India's largest small carmaker is finally making a dent in the premium mid-size market. Maruti Suzuki's SX4 has broken Honda City's stranglehold and the fight promises to intensify. However, Honda is hitting back to regain market share.

Honda City's six-year dominance of the mid-size premium car segment has been dented by Maruti-Suzuki's latest offering, the SX4. According to June sales figures, the SX4 and Maruti Esteem sold almost 4000 units vs 2656 of the Honda City.

From 14.7 per cent in May last year, Maruti's market share in the A3 segment has virtually doubled to 25.2 per cent in may this year. During the same period, Honda City's market share has fallen from 22 per cent to 14.2 per cent. Reports suggest that Honda recently circulated a 12-page document to its sales force, giving eight reasons why the City is a better buy than SX4. Maruti sees this as an acknowledgement of the SX4's success.

In FY '06-07, Honda City was the market leader in the mid segment selling over 40,000 cars, followed by Ford India. Honda is targeting a sales growth of 5 per cent for the City and hopes to sell 42,000 units this year. Honda says the disturbance is only 'transitional'.

Suzuki introduced the SX4 at a very competitive price, keeping the base variant Rs 50,000 cheaper than Honda City.

The battle for supremacy between the Japanese automakers is likely to intensify with both sides expected to increase their sales tempo in the coming months. Honda is gearing up to upgrade its city by October this year to fight for its leadership position. But for Suzuki, it will be a fight to create a presence in the premium sedan category, a segment in which the company hasn't had much success.

Maruti To Launch Grand Vitara In July @ Rs 13.8 Lakh

Maruti Udyog will launch the new Grand Vitara in July that its Japanese parent company Suzuki Motor Company has introduced in the global markets.

The earlier Vitara was, however, more powerful with an engine capacity of 2600cc whereas the new car has an engine capacity of 1995 cc. The aggressive pricing pitches Vitara strongly against the likes of Ford Endeavour(Rs 14.72 lakh for the base model) and the Honda CR-V(Rs 17.8 lakh for the base model).

"Grand Vitara happens to be our fifth model in less than 12 months," Jagdish Khattar, MD & CEO, Maruti Udyog said after the launch today. The company has launched Wagon R Duo, Zen Estilo, Swift Diesel and SX4 over the last one year. Designed to compete with brands such as Honda CR-V, Ford Endeavour, and Hyundai Tucson, the Grand Vitara will be imported from Suzuki Japan as a completely built unit.

According to company sources, the Grand Vitara, known as Suzuki Escudo in Japan. Priced at Rs 13.8 lakh (ex-showroom, Delhi) for the manual transmission model and Rs 14.8 lakh for the automatic transmission model, the car replaces the earlier Vitara that came with a heavier price tag of Rs 18.28 lakh (manual transmission).

Maruti June Sales Up 24% y/y

India's top car maker, Maruti Udyog Ltd., on Monday reported a 23.7 percent rise in its June sales, boosting its shares by as much as 6.1 percent to their highest since June 6.

Maruti, 54.2 percent-owned by Japan's Suzuki Motor Corp., sold 59,917 vehicles in June. It sold 56,000 units in the domestic market, up 25.5 percent from a year earlier.

The biggest gain came in the A3, or mid-size, segment where Maruti's newly launched SX4 premium sedan helped contribute to a 46.4 percent rise in monthly sales to 3,923 units.

In the A2 or compact segment, Maruti's Swift hatchback continued to do well, boosting monthly sales by 38.3 percent from a year earlier to 37,646 units.

Maruti said in June there were delays in the delivery of the SX4 and the Swift on account of the high demand. After a planned maintenance shutdown last month, Maruti said on Monday supplies of these models were likely to improve.

Maruti had offered customer discounts and dealer incentives till June 15 to offset the impact of higher interest rates, which have caused a slowdown in auto sales in the industry. Some vehicle makers have cut production as a result.

Maruti's Swift and SX4 are made at its new plant in Manesar, near New Delhi, which has an initial annual capacity of 100,000 units.

"The plant is running at full capacity already, and there are waiting lists for the SX4 and the Swift," said Viraaj Teckchandani, an analyst at ASK Securities, who has a "buy" rating on the stock.

These newer models have higher margins than Maruti's older models and don't face an immediate competitive threat, he said.

Maruti has nearly half of India's market of mostly small cars, but is trying to shift customers to its more premium models. It will launch a new variant of its Vitara sport utility vehicle shortly.

Shares in Maruti were up 4.9 percent at 779.60 rupees at 0643 GMT, valuing the company at 225 billion rupees. Its shares are trading at 13 times forward P/E.

Maruti’s Exports To Asean Speed Up

Car market leader Maruti’s search for non-European export markets has earned it an Asean windfall. The company has managed to make inroads into markets such as Indonesia and the Philippines which are traditional Honda and Toyota strongholds. Maruti has snagged an export order of 11,000 units of the Zen Estilo to Indonesia and 1,500 units of the Alto to the Philippines. Both orders will span the next 11 months at a monthly clip of 1,000 units and 150 units respectively. Suzuki, which owns 54.2% in Maruti, already has a manufacturing facility in Indonesia.

“A group of senior officials from Suzuki Indonesia visited us at the launch of Zen Estilo in December last year and ordered a few cars on trial basis. Later they asked us to supply 1,000 cars per month for the entire year,” Maruti managing director Jagdish Khattar told ET.

Maruti has been trying to expand its export markets aggressively. As part of that effort, about 140 dealers and distributors from about 24 countries and officials from Suzuki’s various subsidiaries visited India between January to March this year to learn about the way Maruti sells cars. “There were five or six delegations covering a wide range of countries, including the Caribbean, Costa Rica, Cameroon, Tanzania, Egypt, Saudi Arabia, Jordan, Kuwait etc,” Mr Khattar said.

Maruti aims to export 55,000 units in the current fiscal, up nearly 45% over the 38,000 units shipped last fiscal. From 18,000 units two years ago, it’s current export basket is entirely non-European. Maruti’s Indonesian foray is significant given that it debuted last year with just short of 1,000 vehicles. Suzuki’s Indonesian subsidiary, PT Indomobil Suzuki International (ISI), has a local facility to manufacture 1,40,000 cars a year.

The Maruti-made Estilo will fill in for the Suzuki Karimun small car, which has been phased out and sold around 1,000 units last year. Other small cars in this 3.18-lakh market are the Chinese Chery QQ and the Kia Picanto and Hyundai Atoz. As a market it is attractive for exporters because the duty rates are reasonable (40%) compared to other Asean markets like Thailand.

Last year Maruti’s nearly 40,000 unit exports were to markets like Algeria, Sri Lanka, Chile, Sudan, Morocco, Saudi Arabia, Egypt and Nepal. Europe, which contributed 23,981 units out of 32,340 for Maruti in 02-03, 35,113 units out of 51,175 in 03-04 and 32,740 units out of 48,899 in 04-05 came down to zero in 2006. Non-European countries on the other hand have grown from 4857 units in 01-02 to 23,696 last year, 38,000 units last fiscal and an expected 55,000 units this year.