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.
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.
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