Maruti may say that volumes are important for the company but it has clearly got an eye on margins too.
Sources have told NDTV that Maruti's next model in January will be a C segment sedan based on the Swift.
Maruti's Esteem has been in the market for over a decade now and desperately needs a replacement. This will also be a high volumes product.
Component industry sources indicate volumes in the region of 35,000-55,000 units per year. The car will be made at Maruti's new plant at Manesar. The plant is gearing up for inventory build up in December prior to launch.
Since the car will share the Swift platform, there would be few development costs on the engine front as it is likely to share both diesel and petrol power trains. The car will be priced in Rs 5-6 lakh bracket and this means that the model will help boost Maruti's bottomline.
Sources also confirm that all key suppliers for the project are in place. The new car is likely be exported by March 2008, primarily to Europe to boost the missing sedan link for Suzuki.
It will also take on a segment where sales have been segmented with Hyundai, Tata Motors, Ford and Mahindra Logan. But the company will once again seek market leader status in this class like it has achieved with the SX4 launched a few months ago.
So expect very aggressive pricing and the good news for the Maruti shareholder is that margins will not be impacted, in fact they will get a booster.
Sources have told NDTV that Maruti's next model in January will be a C segment sedan based on the Swift.
Maruti's Esteem has been in the market for over a decade now and desperately needs a replacement. This will also be a high volumes product.
Component industry sources indicate volumes in the region of 35,000-55,000 units per year. The car will be made at Maruti's new plant at Manesar. The plant is gearing up for inventory build up in December prior to launch.
Since the car will share the Swift platform, there would be few development costs on the engine front as it is likely to share both diesel and petrol power trains. The car will be priced in Rs 5-6 lakh bracket and this means that the model will help boost Maruti's bottomline.
Sources also confirm that all key suppliers for the project are in place. The new car is likely be exported by March 2008, primarily to Europe to boost the missing sedan link for Suzuki.
It will also take on a segment where sales have been segmented with Hyundai, Tata Motors, Ford and Mahindra Logan. But the company will once again seek market leader status in this class like it has achieved with the SX4 launched a few months ago.
So expect very aggressive pricing and the good news for the Maruti shareholder is that margins will not be impacted, in fact they will get a booster.
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