Maruti Udyog To Set Up Automobile Training Institute In Gujarat

Maruti Udyog Ltd has signed a memorandum of understanding with the government of Gujarat to set up, manage and run an automobile training institute at Gajadara in Vadodara.

The institute will not only provide driving training to tribal youth, it will also offer automobile technical training.

The Development Support Agency of Gujarat shall provide the infrastructural support and Maruti shall manage and run the institute. Maruti will provide technical expertise, guidance and all services at the institute.

"In addition to driving training at this institute, we will also introduce short duration motor mechanic courses for tribal youth. These will strengthen their employability," Managing Director Jagdish Khattar said, speaking on the occasion.

Governments of Haryana, Punjab, Bihar, Uttarakhand, Chattisgarh and West Bengal have also approached Maruti to set up driving training institutes in their states. The company has already signed an MoU with Haryana for setting up two driving training institutes at Rohtak and Bahadurgarh.

Source: http://economictimes.indiatimes.com/

Maruti Hits Non-EU St To Beat The Blues

Maruti Suzuki may be struggling to boost sales in the home market but when it comes to exports, the company is doing far better. Not only has it opened up the non-EU front by going to countries such as Morocco, Algeria, UAE, Saudi Arabia and Chile, but it has also ratcheted up operations in markets where sales were slack.

Maruti’s managing director Jagdish Khattar said while the overall export target for this year has not been revised, incremental exports would certainly help.

"Two years ago, I began taking interest in non-EU markets and visited many of them to figure out how to increase exports. I realised dealers in many of these markets were not following Maruti’s model of selling and they were invited to India to study our model. Today, the M 800, Alto and Zen Estilo are among the cars we export to non-EU countries."

Khattar said Zen Estilo has, in fact, become the largest-selling car in Indonesia. Overall, the company is eyeing an export of 55,000 units in the current fiscal, up nearly 45% over last fiscal at 38,000 units. From 18,000 units two years ago, its current export basket is entirely non-European.

But the success on exports comes even as things continue to look grim on the home front.

While the company continues to prop sales with all-round marketing initiatives, this situation cannot continue for long. “Everyone (other manufacturers) is looking towards the festival season for things to improve in the market. I am not sure how long I can continue to support sales with such as huge marketing expenditure.”

Maruti is among the very few automobile companies that has shown consistent sales growth this fiscal despite increased credit rates and a general slowdown in the market. This was possible through marketing initiatives which have seen employees of the company, dealers and employees of its dealership and even Maruti’s shop floor workers pitching in with sales recommendations.

But all of this comes for a price - Maruti has offered Rs 1,000 incentive for each car its employees and associates have sold. Then, the company is also offering handsome discounts to further improve sales.

Source: http://www.dnaindia.com/report.asp?newsid=1120095&pageid=2

Maruti To Invest Rs 90 Billion By Next 3 Yrs

Maruti Udyog, India`s biggest car manufacturer, is planning to invest Rs 90 billion in its new plants; up-gradation of its Gurgaon facility; and on new series engines for its cars.

The company is coming up with a new car facility and diesel plant at Manesar.

Maruti intends to export its next high volume car targeted at tile European market from India.

In the meantime, the company’s shareowners at its 26th Annual General Meeting sanctioned the change in company’s name to “Maruti Suzuki India”.

The new name will come into effect after it is okayed by the Companies Registrar.

During the fiscal 2006-07, the net sales of the company augmented by 21.6% and profit after tax (PAT) developed by 31.4% over the previous year.

Source: http://www.topnews.in/maruti-invest-rs-90-bn-next-3-yrs-21371

Maruti Udyog Not Afraid Of Competition From Tata Rs. 1 Lakh Ca

Maruti Udyog not afraid of competition from Tata Rs. 1 lakh car

Maruti is the leader in the automobile market in India. The company has the best selling compact cars including Maruti 800, Alto, Zen Estilo and Wagon R.

However, the company is expected to face the most intense challenge from the upcoming Rs. 1 lakh car from Tata Motors.

Maruti has now assured their shareholders that the Tata car would not be a challenge to their existing products in the market and they would continue to follow their own strategy for the domestic market.

Maruti Managing Director Jagdish Khattar said in a statement: “Every company has its own strategy and if we keep on reacting to them, our own strategy will fail.”

He added that the Tata car would become a challenger to the two wheeler manufacturers in the Indian market.

He said: "We kept on saying in the past, and now even the foreign experts and analysts are saying the same that the Rs 1-lakh car will be more of a competition to motorcycle makers. Two-wheeler customers who cannot afford our products would be attracted to the small car."

Source: http://news.techwhack.com/6426/maruti-tata/

Maruti Plays Kabaddi To Keep Rivals At Bay

This is Maruti Udyog Ltd’s (MUL) latest pitch to stay ahead of the pack in an increasingly competitive car market. The car market leader has unveiled a new weapon to upstage its rivals with its unique rural initiatives that include, among other things, sponsoring kabaddi matches in villages.

The aim is to target key opinion makers at the village level. Panchayat members at the block level and district zila parishad members have now emerged as the new drivers of Maruti’s car sales.

The rural thrust scheme offers a panch member card, apart from prevailing promotional schemes and special discounts on different models.

Maruti has also been using the services of vendors and utilising employee referral schemes to drive sales in a rather sluggish market. The schemes have been extended to gramsewaks and patwari as well as other important government officials like block development officers.

Fanning out across rural India are exclusive dealer sales teams with a current strength of 1,500 employees. Its efforts are there for all to see.

In the past three months, Maruti sold 8,300 cars through the panchayat scheme and 16, 200 units by the employee referral scheme called 'Lalkar'. Vendors, operating as dealers, have contributed in the sale of 3,000 cars, while Maruti finance and insurance associates pitched in with the sale of 2,900 units. Another scheme called ‘Wheels of India’ sold 5,100 units, although it was shelved from August 1.

MUL Managing Director Jagdish Khattar candidly admits that Maruti’s ‘special initiatives’ have helped it stave off the pressures of a sluggish market.

“But for these marketing drives, we would have not done as well as we have done till now,” Khattar told the Hindustan Times. Maruti Udyog reported a 24.8 per cent increase in its domestic vehicle sales during August at 60,229 units, as against 48,259 units in the same month last year. Cumulative domestic sales in April-August grew 19 per cent to 2,73,672 units, as against 2,30,016 units in the corresponding period last fiscal.

However, sales in the A1 segment, comprising the flagship entry-level hatchback Maruti 800, dipped 14.7 per cent during the month at 5,480 units, as against 6,425 units in the corresponding month last year. The A2 segment comprising hatchbacks Alto, Wagon-R, Zen and Swift reported a 28.6 per cent increase in sales during August over last year.

Riding on the success of the premium sedan SX4, the company reported sales of 4,839 units in the A3 segment, which also comprises the Esteem sedan, during the month, as against 2,837 units a year ago, up 70.6 per cent. In the MUV segment, its Grand Vitara and Gypsy sales reported a 45.4 per cent increase over last year.

Industry analysts feel MUL’s aggressive marketing and sales initiatives helped weather the slack demand in the domestic auto market, triggering better sales.

Source: http://www.hindustantimes.com/

Maruti August Sales Up 25%

Market leaders in the car and bike segment posted high sales growth in August, despite slack demand in the domestic automobile market. On the back of massive sales promotion schemes, car market leader Maruti-Suzuki posted a 25% sales increase to 60,229 units in August 2007 compared to 48,259 units in August 2006.

General Motors on a comparatively smaller base of 2006 posted an 114% increase in sales to 5,817 units. Luxury car maker Skoda India reported a 7% increase in sales to 900 units. Honda Siel Car India reported a 7% dip in its sales during August at 4,879 units. Bajaj Auto’s two-wheeler sales fell by 6% to 170,203 units.

Analyst tracking the automobile sector said limited product excitement and lack of marketing initiative proved detrimental for several auto makers while new launches triggered better sales.

“Many product launches by Maruti-Suzuki, General Motors and Hero Honda in recent months helped these companies with positive sales. As most of the companies have planned launches during the pre-festive month of Diwali, better sales are expected in October, while we are expecting flat sales in September too,” said Religare Securities auto analyst Arvind Jain.

For Maruti-Suzuki, its recently launched premium sedan SX4 is generating good sales while Hero Honda’s growth is being driven by the recently-launched variants of Pleasure, Splendor NXG and Passion Plus bikes.

Source: http://economictimes.indiatimes.com/

Maruti Udyog August Sales Gain On Swift, SX4 Models

Maruti Udyog Ltd., India's biggest car maker, said sales rose 27 percent in August as demand grew for its Swift and Zen Estilo hatchbacks and the new SX4 sedan.

Maruti sold 65,968 cars, vans and sport-utility vehicles in India and overseas last month, compared with 51,855 a year earlier, the New Delhi-based automaker said in an e-mailed statement today. Local sales rose 25 percent to 60,229 and exports gained to 5,739 from 3,596 a year ago.

The Indian unit of Suzuki Motor Corp. introduced five new models in the past year to attract buyers and counter higher interest rates. Maruti aims to overtake its parent's sales in Japan this year as economic growth and rising disposable income boosts car demand.

Maruti's sales in the first five months of the current financial year climbed 21 percent to 293,546 units. The company has a target to sell 700,000 cars in India in the year ending March 31, compared with 674,924 a year earlier, according to Jagdish Khattar, its managing director.

Shares of Maruti rose 4.2 percent to 868.2 rupees at the 3:30 p.m. close on the Bombay Stock Exchange yesterday. The exchange's benchmark Sensitive Index rose 1.3 percent.

Source: http://www.bloomberg.com/apps/news?pid=20601091&sid=adZHUaT7vFLA&refer=india

Monsoon Magic: Dazzling Discounts On Cars

If you have been thinking of buying a new car or upgrading to a bigger car, now is the time to check out good bargains in motown and avail offers available till August end.

Traditionally known as the off-season in the automotive world, monsoon is the season when most auto makers give attractive offers to boost their sagging sales tally. ET Automania goes car shopping this week to check out the latest.

The market leader Maruti Suzuki India recently extended its discount scheme of Rs 7,000-Rs 40,000 across various models. Under its ‘Smile India Smile’ campaign , the auto maker is offering a further Rs 10,000 discount if you exchange an old model.

Here are some of Maruti’s hot picks. If you upgrade to a three-box Esteem, you can earn a gift cheque of Rs 30,000. If you exchange your old car, you could get about Rs 40,000 off on the new one. If you are a first-time buyer and the old trusted M800 is what you want, you could get a gift cheque worth Rs 12,000. Similarly, Alto comes with a gift cheque of Rs 11,000.

But here’s a tip: while buying a car in the discount season, evaluate deals from different dealers in the NCR. Chances are you might get some extra top-up schemes.

Source: http://economictimes.indiatimes.com/

Maruti Mulls Over LPG, CNG Models To Kick-Start Versa Sales

India’s largest car maker, Maruti Udyog Ltd, is seeking to revive the flagging fortunes of its multi-purpose van Versa, one of its slower selling models, by introducing more fuel- efficient options.

A person close to the development who did not want to be identified said an engineering team at Maruti is in advanced stages of getting the vehicle running on options such as compressed natural gas (CNG) and liquefied petroleum gas (LPG) to bring down the cost of ownership and compete better with rival carriers that run on diesel.

“The Versa might also eventually make an appearance in other forms for applications, such as ambulance, but that is only after we present it in the market with other fuel options,” this person said.

The Versa is the Indian version of the now-discontinued Suzuki Every / Carry. It currently runs on a 1298cc, four-cylinder petrol engine. Maruti officials declined to comment saying the company doesn’t discuss future product launches.

This is the third time that the company is looking to jump-start sales of the Versa, which was launched in 2001 with actors Amitabh Bachchan and son Abhishek Bachchan as brand ambassadors.

It was launched as the country’s first luxury van with features such as twin air conditioners and sold for around Rs6 lakh for the high-end model. The company reduced the price in 2003 and later in 2004, when it relaunched the car with a Rs4 lakh price tag.

According to another person familiar with the situation, Maruti sells just about 50-60 units of the vehicle every month and is primarily bought by those looking for a spacious family car.
Maruti has used cheaper fuel options to boost sales for models such as the Omni van, whose sales perked up when it came out with LPG and CNG versions.

At Rs1.90 lakh, the Omni LPG Cargo is the cheapest commercial goods carrier in the market today.

Maruti sold an estimated 27,000 vehicles in the four months since April, up from 23,000 units in the year-ago period.

Source: http://www.livemint.com/2007/08/28235032/Maruti-mulls-over-LPG-CNG-mod.html