Maruti To Expand Diesel Line

Delhi’s diesel dilemma does not seem to have dampened the auto industry’s interest in this fuel option. India’s largest car maker Maruti Suzuki (MSI) plans to add a new set of engines to its diesel range as part of its long-term growth strategy.

It is moving away from the solitary diesel car maker image and will expand its portfolio beyond the bestselling Swift diesel.

Without outlining any timeline for the new engines, Suzuki Motor Corporation chairman Osamu Suzuki told ET: “Currently, we have the 1.3 litre multijet diesel engine being used only in Swift. We are considering more types of engine that can be introduced as there is a need to expand the diesel portfolio. Some options are being studied for smaller diesel engines.”

The company is expanding its diesel engine capacity from 1 lakh units to 3 lakh units at its Manesar facility. While the 1.3 litre engine used in the premium hatchback Swift will also be strapped on to the new offering Splash, the smaller engines that the company plans to develop at this facility will fire other compact cars. Maruti is studying options for smaller engines from Suzuki Powertrain India. “The possibility of fuel-efficient small diesel engines in future cannot be ruled out. Besides the 1.3 litre diesel engine, an expanded range will help us keep our market share intact,” said an MSI executive.

These small engines are targeted at the European market which is predominantly diesel unlike India where diesel comprises around 25% of the market. For Suzuki’s new world car A-Star — to be manufactured in India and exported mainly to the European market — the Japanese company may consider a diesel option besides the already announced 1.0 litre petrol engine.

“In case, the diesel engine is considered for this car at any point of time in future, Suzuki is open to evaluate various diesel engine options available at that time,” an MSI spokesperson said.

The company also plans to counter the growing breed of smaller diesel engines being launched by other companies like Hyundai Motor India (HMI) and General Motors. Hyundai’s new small car i10 will have a 1.1 litre diesel engine (the smallest in the market) and will soon debut in Europe. General Motors is considering a diesel engine option for its compact model Spark.

Maruti Suzuki Looks At rolling Out 'World Car' From India

Suzuki Motor is looking at launching its next "world car" from India, reports agency sources.

The car is likely to be rolled out from the Maruti Suzuki India's (MSI) facility situated at Manesar. This car is targeted at the European market.

It is believed that, the chairman of the company, Osamu Suzuki will be in India next week and he is also likely to make an announcement on the company's plans for the new global car, sources said.

The new car will be the fifth global model from Suzuki and is being jointly developed by MSI and SMC, sources added.

MSI is increasing the capacity at its Manesar plant to nearly 3 lakh units by 2010; currently it has a capacity of one lakh. The scaling up is done to accommodate the production of the new 'world car'. MSI's new R&D facility spread over 500 acre to be set up at its Manesar facility will also house a vehicle test track.

Source: http://www.myiris.com/

Suzuki To Make Compact, Low-Emissions Hatchback In India Geared For Global Export

Beginning next October, Japanese automaker Suzuki Motor Corp. plans to make a new compact hatchback in India that will be sold all over the world, the company's chairman said Tuesday.

The plan is part of Suzuki's efforts to make India an export hub. It also is intended to keep Suzuki Motor Corp.'s majority share of the Indian car market as competition mounts in the coming years.

"Our next world car will be made in India," Chairman Osamu Suzuki told reporters in New Delhi. "We are going to commence production after autumn 2008."

The one-liter gasoline engine car will not only comply with the most stringent pollution control rules but also keep carbon emissions lower than those of its European competitors, Suzuki said.

It will come with a "very attractive" price tag, the company said without giving details.

Suzuki holds a controlling 54 percent stake in Maruti Suzuki Ltd., India's largest car maker, which is expanding its factory in the northern Indian town of Manesar to prepare for production.

"In a year or year and half, we would have tripled production at the Manesar plant to 300,000 units," said Jagdish Khattar, managing director at Maruti Suzuki.

About 150,000 units of the new car will be manufactured annually at the Manesar plant, Suzuki said. A third of this will be exported, while the rest will be sold in India, he said.

The new car — code named A-Star — is part of Maruti Suzuki's ongoing efforts to protect its market share in India, which stood at 54 percent last year.

The company plans to invest 200 billion yen (US$1.8 billion, €1.22 billion) between 2007 and 2009 to increase capacity, bring new models and shift manufacturing of more engines to India.

The car is the first model that has involved designers from Maruti Suzuki's research and development division in India from its initial stage of its styling, a company statement said.

Suzuki said the company wants to further strengthen its research and development work in India.

Source: http://www.iht.com/articles/ap/2007/12/11/business/AS-FIN-COM-India-Suzuki.php

Suzuki Boss Sceptical About 3,000 Dollar Car

Suzuki Motor is taking a cautious view of the race to build a 3,000-dollar car in India, where the Japanese mini-car specialist is the market leader, its chief executive said Wednesday.

India's Tata Motors has previously said it plans to introduce a 3,000-dollar car in its home market next year, while Nissan and Renault are also considering jointly launching a similarly priced vehicle in India by 2010.

But Suzuki chairman and chief executive Osamu Suzuki expressed scepticism about prospects for such a low-priced vehicle.

"Global standards for emissions, environmental protection and also automobile safety are all becoming stricter each year. It's not really clear which standards, in which year, this 3,000-dollar car is aiming to meet.

"For example, will airbags be included? Will there be seatbelts? These are questions that really need to be considered," he told reporters.

"So our fundamental stance is that rather than Suzuki becoming very concerned and watching over its shoulder to see what other people are doing, Suzuki has decided to move forward at its own pace," he said.

Suzuki was an early entrant into the Indian market when the billion-plus nation started opening up its economy in the 1990s following decades of socialist protectionism.

Maruti Suzuki India Limited, majority owned by the Japanese automaker, now has a market share of more than 50 percent in the fast-growing Indian market, but its dominance is being increasingly challenged by global automakers.

"Going forward the idea of our being able to maintain this 55 percent share is something that's going to be very difficult to achieve," said Shinzo Nakanishi, managing director of Maruti Suzuki India Ltd.

"We will strive to keep this very large market share. However we do realise that competition is going to be fierce going forward," he said.

Chief executive Suzuki was more optimistic.

"We will forever maintain a 50 percent or more share of the (Indian) market. It all really depends on the product," he said.

Maruti To Hike Prices Across All Models

Maruti Suzuki India Ltd, the country's biggest carmaker, will increase prices of its cars across all models by up to Rs 12,000 from next month to offset the rise in input costs and freight charges.

According to dealer sources, the company has cited higher costs of raw materials such as lead and aluminium as well as oil among the reasons for increasing the vehicle prices.

Sources said Maruti has written to its dealers across the country that the prices will be increased from January 2008. Further, the company's production facilities will be shut down for maintenance activities during December 24-31 and the dealers have been asked to plan their bookings accordingly.

Maruti officials declined to comment on the issue.

Sources also said MSIL has told its dealers that the higher prices would be applicable on dispatches of vehicles from the date of announcement of the price hike and there would not be any price protection for pending orders at the company level.

Source: http://www.hindu.com/thehindu/holnus/006200712071632.htm

Maruti To Hike Prices Across All Models

Maruti Suzuki India Ltd, the country's biggest carmaker, will increase prices of its cars across all models by up to Rs 12,000 from next month to offset the rise in input costs and freight charges.

According to dealer sources, the company has cited higher costs of raw materials such as lead and aluminium as well as oil among the reasons for increasing the vehicle prices.

Sources said Maruti has written to its dealers across the country that the prices will be increased from January 2008. Further, the company's production facilities will be shut down for maintenance activities during December 24-31 and the dealers have been asked to plan their bookings accordingly.

Maruti officials declined to comment on the issue.

Sources also said MSIL has told its dealers that the higher prices would be applicable on dispatches of vehicles from the date of announcement of the price hike and there would not be any price protection for pending orders at the company level.

Source: http://www.hindu.com/thehindu/holnus/006200712071632.htm

Maruti Leads In Customer Satisfaction For 8th Year In A Row

Global consultancy and research firm JD Power Asia has ranked car market leader Maruti Suzuki India Ltd (MSIL) as the best four-wheeler manufacturer in the country in terms of customer satisfaction for the eighth consecutive year.

MSIL, which scored 838 points on a 1,000 point customer satisfaction index, was far ahead of the industry average of 777 points primarily on account of innovative service offerings like doorstep pickup and delivery of cars for servicing for its lady customers, JD Power said in a statement.

The special service package for lady customers has got JD Power's special mention in this year's survey. MSIL offers the special service across all its 621 dealer workshops covering 1,195 cities.

"The study finds that vehicle pickup and delivery before and after service has a strong impact on customer satisfaction. In particular, customers who say that their vehicle was picked up from their doorstep before service and delivered to the same point after service are notably more delighted with their after-sales service experience," the statement said.

MSIL was followed by Honda with 765 points, Hyundai (745 points) and Toyota (740 points) at second, third and fourth places respectively.

Homegrown carmaker Tata Motors scored nearly 80 points less then the industry average at 690 points to emerge as the ninth company on the index.

"Picking up and delivering vehicles provides greater convenience to customers, who travel an average of nine kilometres each way to reach their authorised service centre," JD Power Asia Pacific Senior Director Mohit Arora said.

JD Power's customer satisfaction index, in its 11th year now, measures the overall satisfaction of vehicle owners who visited their authorised service centre for maintenance or repair work during the first 12 to 18 months of ownership.

The research firm determines customer satisfaction through seven measures -- problems experienced, service quality, user-friendly service, service advisor, service initiation, service delivery, and in-service experience.

"The steady improvement in industry-wide CSI performance during the previous three years reflects the success that many manufacturers have had in enhancing the customer experience at their dealerships," Arora said.

He said the improvement in performance is encouraging, considering the sharp increase in service volumes for most dealer networks.

The study said customers who service their vehicles only at authorised service centres report higher overall service satisfaction, compared with those who also use non-authorised service centres in the past.

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

2001 Strike Made Maruti What It Is Today: Khattar

Strange as it may sound but Maruti Suzuki India's outgoing Managing Director Jagdish Khattar gives full credit to a strike at the beginning of this century for success of the company that today controls over half the Indian car market despite presence of the world's who's who.

"The 90-day strike was the turning point...had we given in at that time, we would not have been what we are today," he said ruminating on his 14-year stint that is coming to an end after he refused Chairman O Suzuki's offer for extension.

He, however, was uncomfortable talking about the recent success of the Indian entity overtaking the parent company - Japan's Suzuki Motor Co - in terms of sales for the first half of the year. The feat was reported from Tokyo but Indian executives kept it under wraps for months and did not talk may be because of modesty or the fear of offending their bosses.

"The 2001 strike was one of the toughest periods that I came across in Maruti Suzuki. It was actually the turning point," Khattar said, recounting the pressure (political) he had to face in the company where the government was 50 per cent partner at that time.

The man, who joined the company in 1993 as a marketing director, remembers the "total and unflinching" support he got from Suzuki and said: "If we were to give in to agitators, we would not have been what we are today. Salaries would have shot up, too many manpower and less of efficiencies, cost of production would have escalated and our competitiveness would have been wiped out."

The workers had taken to agitation in 2001 for pay perks and working conditions and a settlement for ending the strike was announced by the then industry minister Manohar Joshi.

"The biggest strength was my own people in the factory, who despite being less in numbers kept the production going," Khattar recalled and admitted that his training as an IAS officer was also of help.

Looking back, he said he has no regrets and was leaving the company as a satisfied man who has done his job. "I am not someone who harps on the past. I have had an eventful tenure in Maruti. I have no regrets and I am leaving as a contented man."

Khattar, who saw the company change from a public-private partnership between India government and Japan's Suzuki Motor Co to a fully privatised entity, said that he was "lucky in many ways to be a part of a change from controlled economy to a liberalised one".

"Not only in Maruti, even when I was with UP Cement Corporation and during my stint in Steel Ministry, I have been a witness to the change," he said, reflecting on the time when he joined Maruti when there was a waiting list for cars and today when companies offer discounts to beat competition.

"Every company has its own strategy and we cannot be reacting to all. We need to focus on our strategy. As far as the Rs one lakh car is concerned, Suzuki has already made it clear it cannot produce a car at that price fulfilling all safety norms," he said.

Despite speculation rife on his future plans, Khattar refuses to disclose and keeps the cards close to his chest. "First I will enjoy the break and think about it (future) later," he quipped.

Maruti Suzuki Domestic Sales Rise 15% In Oct`07

India's top car maker Maruti Suzuki (Q, N,C,F)* India clocked 14.96% rise in domestic vehicle sales at 64,258 vehicles for October 2007 as against 55,894 units sold in October 2006.

In all, the company sold 69,415 vehicles in October 2007. This includes 5,157 units of exports.

Maruti's volume in the domestic A2 segment, which comprises of Alto, Wagon-R, Zen, Swift, went up by 20.9% and in A3 segment, which comprises of Esteem, SX4, volume grew by 54.7% during the October 2007 compared to sales in October 2006.

Recently, the company announced it plans to invest USD 1.8 billion in R&D, marketing and capacity expansion.

Maruti Bags Order For 300 'Versa' From Orix

Maruti Suzuki India's efforts to push sales of multi-purpose vehicle 'Versa' received a boost by way of an order from multinational fleet operator Orix for 300 units, estimated to be worth over Rs 10 crore.

According to sources, Orix had approached Maruti Suzuki India (MSI) for a customised version of Versa, which it intends to run as radio taxis in Delhi.

"The seven-seater vehicle to be delivered to Orix will be called 'Versa OX' and will see changes in the interiors such as seating arrangements with more plush upholstery," a source said.

The order comes at a time when MSI is mulling over bringing in changes to Versa to make it a volume driver.

If the concept of making the Versa more suitable for fleet operators, as it has done for Orix, catches on, MSI may even look at coming out with a completely new version of the vehicle.

When contacted, MSI officials declined to comment.

Versa, which was launched in 2001 dubbed as India's first luxury MPV, has not met with much success by Maruti's own high standards.

The company had even roped in Amitabh and Abhishek Bachchan to promote the product. In 2004, it had brought in the five-seater variant of the Versa.

Source: http://www.thehindubusinessline.com/blnus/02071507.htm

Maruti To Replace Esteem In 2008

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.

Maruti Suzuki Domestic Sales Rise 15% In Oct'07

India's top car maker Maruti Suzuki (Q, N,C,F)* India clocked 14.96% rise in domestic vehicle sales at 64,258 vehicles for October 2007 as against 55,894 units sold in October 2006.

In all, the company sold 69,415 vehicles in October 2007. This includes 5,157 units of exports.

Maruti's volume in the domestic A2 segment, which comprises of Alto, Wagon-R, Zen, Swift, went up by 20.9% and in A3 segment, which comprises of Esteem, SX4, volume grew by 54.7% during the October 2007 compared to sales in October 2006.

Recently, the company announced it plans to invest USD 1.8 billion in R&D, marketing and capacity expansion.

Shares of the company were last trading down Rs 10.65, or 0.99%, at Rs 1,062.90. The total volume of shares traded at the BSE was 128,387 (11.41 a.m., Thursday).

Suzuki To Soon Make A Small Car Splash

There is a new Maruti around the corner. Maruti Suzuki India Limited (MSIL), the wholly-owned Indian subsidiary of Japan's Suzuki Motor, is launching Splash, a compact car, in India soon.

The car is the next generation Wagon-R, the popular tallboy compact. The company has already launched the Splash in the US market, and is expected to launch in India in the coming six to eight months.

Speaking to Hindustan Times on the sidelines of the Tokyo Motor Show, a senior Suzuki official said, "The Splash is our answer to the 'world car' concept. That is the car we would be looking at bringing to India.” The Splash, a four door compact hatchback, was displayed at the motor show.

The world car concept is being pursued by most Japanese manufacturers to create cheap, small cars for emerging markets such as India and China.

The new car would be the natural upgrade from the Alto or the older Wagon-R and is expected to be available in Rs 4 to 6-lakh category, according to Suzuki sources, although the official refused to confirm the price.

Suzuki has a near 60 per cent share of the Indian small car market. With sales in India recently crossing numbers in Japan, the country has become the company's largest market in the world.

Suzuki plans to ramp up production to 900,000 units per year in its tow Indian plants by the end of 2009. Its new assembly line at Manesar in Haryana, which is currently producing the Swift, would assemble the Splash, the official said.

Outgoing MSIL Chairman Jagdish Khattar had announced earlier this year that Suzuki would launch one car every year for the next five years. The Suzuki official, however, refused any comment on that announcement.

M800 & Alto Come In Lakshmi Edition

The Maruti 800 and Alto have come in a new look under �Lakshmi Edition� with added features. Lakshmi Edition of Maruti 800 & Alto is presented to celebrate the spirit of festivity and make this festival special for its customers, a spokesman of the company in a statement said.

Maruti Suzuki India Ltd. has started this Lakshmi Edition in Northern Indian market of Chandigarh, Punjab, Haryana, HP & Jammu.

Giving details the statement said the Lakshmi Edition will be available in the market from Navratra till Diwali. The Additional features of Lakshmi Edition includes Goddess Lakshmi image, Puja Thali, Specially designed Lakshmi Stickers, Wheel Caps, Coloured Bumpers, Attractive Side Stickers, Seat Covers (M800 only) and with many other accessories. In spite of all these additional features prices of limited editions have not been increased at all.

To keep interest of customers in small car segment Maruti Suzuki India Ltd., has come up with this Lakshmi Edition in the coming festive season.

Maruti 800 & Alto are India�s most fuel efficient cars with low maintenance cost @ just Rs. 1.99 per KM. After selling a record number of Maruti 800 & Alto in the tune of 24 lac cars of two variants Viz AC & Standard since 1985 Maruti Cars have been darling of customers. Alto is India�s most fuel efficient selling car, from the date of its launch i.e September, 2000 Alto has set a mile stone of 7.5 Lac car sold and no other car has been able to ever touch this mile stone in a span of 7 years. With Lakshmi Edition of Alto & M800 Maruti is planning to break its own created records in selling.

In addition to Maruti Suzuki India Ltd launches another scheme on auspicious occasion of festivals �Chhapar Phad ke�. In this scheme company giving a to win every customers a CTV, Refrigerator, DVD Player, Food Processor & many more prizes.

New Maruti Zen In Great Demand In Sri Lanka!

The latest Maruti-Suzuki-Zen car that was designed to take on the other major competitors in the small-car segment in India, has become a rage in the island country.

Associated Motorways (AWW), the sole agent for Suzuki-Maruti in Sri Lanka has placed orders for Zen cars from the Suzuki manufacturing plant in India following high demand.

Despite the fact that prospects of car sales in Sri Lanka was not attractive as in other countries due to the country's economic condition, Maruti-Suzuki has found high demand for its latest Zen version.

Total car sales in Sri Lanka in 2006 was estimated at over 26,500. This year, however, the figures may not be encouraging. But, it is felt that tax concessions from the Sri Lankan government under the India-Sri Lanka Free Trade Agreement would help revive automobile demand from India and improve sales.

A spokesman for the Maruti Suzuki, erstwhile Maruti Udyog Ltd, sales centre at Borella near Colombo told the 'Sunday Observer' that the first shipment of Zen has been reserved only for 'car permit' holders.

"It will take at least two months for the cars to arrive in Sri Lanka," he said, adding that the car's futuristic design and a high spirited engine have attracted small car lovers.

"With a tried and tested engine, the new Zen Estilo is undoubtedly a stylish package that should attract a number of young buyers," the newspaper commented in its special page on automobiles.

Meanwhile, Maruti also plans to ship 1,000 units of the model every month to Indonesia to meet the market demand. "The Indonesian small-car market is small, while the overall auto market there is dominated by SUVs. However, with the launch of Estilo since a few months back, we have been able to capture about 60 per cent of the compact car market," said a company spokesperson in New Delhi.

The spokesperson said Maruti Suzuki is focusing on the non-European market, with sales having grown by over 65 per cent in Middle-East, Africa, South Asia and South America.

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

Suzuki, Maruti And Fiat Plan $18 Million Investment in India

Japan's Suzuki Motor Corp, its Indian unit Maruti and Fiat's Magneti Marelli have agreed to invest around 18 million U.S. dollars together to build electronic control units (ECUs) of diesel engines in India, the Maruti Suzuki India Limited (MSIL) said Thursday.

They will set up a manufacturing unit at Manesar in the north Indian state of Haryana, which is likely to start operations by the end of 2008, it said in a statement.

The proposed facility will be able to make 500,000 ECUs annually.

Magneti Marelli will hold a 51 per cent stake, the Suzuki Motor Corporation 30 percent and the MSIL, India's biggest carmaker, 19percent in the new company.

"The joint venture with Suzuki and Maruti significantly strengthens an important partnership already in existence, giving the car maker the possibility to rely on competitive systems featuring cutting-edge technology and the components maker the chance to increase its presence in a strategic and fast-growing market," Magneti Marelli chief executive officer Eugenio Razelli said in the statement.

Maruti Suzuki One Up On Parent

Maruti Suzuki India Ltd, for the first time, has raced past its Japanese parent Suzuki Motor in sales.

The rising income in India fuelled demand for Maruti cars in the country. Maruti Suzuki sold 336,758 cars, vans and sports utility vehicles in India between April and September, the Society of Indian Automobile Manufacturers (SIAM) said. In comparison, Suzuki sold 315,000 units in Japan during the same period, according to spokesperson Takuma Mizuyoshi.

Suzuki and other car makers plan to spend more than $6 billion on new facilities to meet the growing demand for passenger cars in India. The overseas expansion is expected to compensate for the sluggish demand in Japan.

“This is significant and it’s a pointer to other companies on the potential India holds for the future,” said K.K. Mittal, a fund manager at Escorts Asset Management.

The Maruti feat is in contrast with the September vehicle sales figure released by SIAM today. Total sales in the domestic market fell by 9.58 per cent with passenger vehicle sales posting a single-digit growth, despite rising car sales.

Already hit hard by rising interest rates, the industry suffered a double whammy with car exports declining by 8.25 per cent during September, thanks to the appreciating rupee.

The two-wheeler segment continued its dismal performance registering a 13.17 per cent fall, while motorcycle sales skid by 18.40 per cent.

Total vehicle sales in the domestic market stood at 8,89,693 units compared with 9,83,983 units in the same month last year.

Source: http://www.telegraphindia.com/1071011/asp/business/story_8421217.asp

Maruti Udyog Is All Set To Launch Swift Sedan

The Esteem has finally run out of steam. Maruti Udyog is all set to launch a new sedan based on the Swift platform in January next year, to replace one of its most successful models. And that is not all. India’s largest carmaker has put together an exciting array of models such as, the small car Splash, the SUV Jimny as well as a ‘big’ car (read Kizashi Concept) to take on the likes of the Honda Civic and Skoda Octavia.

A source close to the company confirmed that production of the Esteem has already been stopped. But when contacted this is what a company spokesperson had to say: “The production of the Esteem is going to continue for the next 3-4 months. But Esteem owners can rest easy, as we would continue to provide service and spare parts to support the model, as always done in the past with other models that have been phased out.”

A top Maruti official said, “We will be launching the Swift Sedan shortly.” The new sedan will be priced lower than the SX4 and is touted to come in two variants, a new-generation 1.3-litre multi–jet diesel engine and in a 1.3-litre petrol variant.

The diesel variant will give Maruti the edge to fight the likes of the Indica and Indigo twins from Tata Motors and also take the fight to Hyundai’s diesel variants. Also according to well-placed sources, Maruti has asked its vendors to get ready to supply components for its big car project.

The concept car called the Kizashi was unveiled at the Frankfurt Motor Show 2007 and it is also supposed to be displayed at the Tokyo Motor Show next month. When launched it will compete with cars in the A4 segment, which has the Honda Civic, Toyota Corolla and Skoda Octavia Rider coming in the price bracket of Rs10-12 lakh.

The company’s plan to go to the next level is driven by the success of the SX4, which has made the Honda’s City a bit jittery. The big car foray is also in step with the global plans of Maruti’s parent company, Suzuki Motor Corp, which desperately wants an image makeover from a successful small carmaker to a manufacturer with competence in bigger cars as well. The company is also scheduled to launch a new compact car (read Splash) in 2009.

A company source said, “The Splash is going to take a little time.” The cheeky Splash comes with three-engine options-a 65 bhp, 1,000cc three-cylinder petrol, a 85 bhp 1,400cc four-cylinder petrol and a 75 bhp 1,300cc four-cylinder turbo diesel.

Source: http://economictimes.indiatimes.com/News/News_By_Industry/Auto/Maruti_Udyog_is_all_set_to_launch_Swift_Sedan/articleshow/2435774.cms

Maruti Reduces Discount On Alto, Omni And M800

The reduction in discount is in line with the company’s expectation of a good demand of Alto, Omni and Maruti 800.

Expecting a bullish demand in the festive season, car market leader Maruti Suzuki India Ltd (MSIL) has decreased discounts on its best-selling hatch Alto and flagship Maruti 800 by Rs1,000 and Rs4,000 respectively.

The company was offering a discount of Rs11,000 on Alto, which will now come down to Rs10,000, while discount on Maruti 800 would drop to Rs8,000 from Rs12,000 earlier.
The reduction in discount is in line with the company’s expectation of a good demand of Alto, Omni and Maruti 800, sources said.

MSIL would continue offering discounts on various models except Swift and SX4.
It currently offers Rs18,000 discount on Wagon-R petrol and Zen Estilo, while Rs3,000 is off on Wagon-R LPG. A heavy discount of Rs30,000 is being offered on Esteem, which is expected to be phased out by next year.

The company is offering a discount of Rs10,000 on its multi-utility vehicle Versa. The discount on Omni, however, has been reduced to Rs6,000 from previous month’s Rs7,000.

Source: http://www.livemint.com/2007/10/10122806/Maruti-reduces-discount-on-Alt.html

Maruti To Set Up Auto Park

Maruti Suzuki India Ltd will set up a 100-acre auto component park for its suppliers at Manesar. The facility is expected to attract big names from Japan.

Industry sources said the Foreign Investment Promotion Board would soon take up the proposal of a Rs 182.16-crore joint venture between Futuba Industrial Company Limited and Maruti Suzuki.

Maruti will hold a 49 per cent stake in the joint venture. This will be Futuba’s first project outside Japan.

Sources said Japan-based Bellsonica Corporation would also set up base at the component park.

Last year, the company signed an agreement with Maruti for car body components, including high-tensile steel parts. Maruti Suzuki will hold a 30 per cent stake in the joint venture — Bellsonica Auto Component Private Limited — with the rest being held by Bellsonica.

Source: http://www.telegraphindia.com/1070919/asp/business/story_8333431.asp

Maruti Forum

Happy news to Maruti Suzuki enthusiasts! A free discussion place is now available for all users to discuss their maruti suzuki related problems. Maruti Suzuki Users' Forum, http://www.marutisuzukitalk.com/ is the first of this kind available to the Maruti users.

Maruti-Suzuki Vehicle Users' Forum is an unofficial Maruti Suzuki discussion forum and one stop resource for all Maruti-Suzuki related issues. The forum topics including all types of Maruti vehicles maintenance, repairs, and performance upgrades. There are discussions on many Maruti related topics and models including the popular Maruti 800, Maruti Zen, Maruti Estilo, Maruti Alto, Maruti Swift, Suzuki SX4, Maruti Wagon R, Suzuki Baleno, Maturi Esteem, Maruti Omni, Maruti Gypsy, Maruti Versa, Suzuki Grand Vitara, etc..

You may visit the forum site Maruti Suzuki Forum and surf there freely to search your queries. But if you want to post your questions or comments, you need to register. Registration is absolutely FREE. Good luck and enjoy the Maruti forum.

Discount Schemes Help Maruti Beat Interest Rate Blues

Maruti Suzuki India (MSIL) on Friday said various discount schemes coupled with a few launches helped the company offset the impact of high interest rates on its sales during the current fiscal.

"Our discount schemes gave us good numbers this year. There has been an impact of high interest rates on car sales but we have been able to offset the impact by introducing new sales scheme," MSIL Vice-President (Marketing) Mayank Parekh told reporters here.

MSIL has introduced several new schemes to boost sales like Wheels of India' for state government employees, First Class Offer for railway employees, Power Deal for NTPC staff, Steel Wheel for SAIL, scheme for teachers, panchayat scheme for rural consumers and lalkaar - an employee referral scheme.

"These schemes were not there during the previous fiscal and have impacted sales positively this year. We would continue with these schemes to push up sales," Parekh said.

He said the company witnessed a high growth during first half of current fiscal due to a low sales base during the same period last fiscal.

"We had a low sales base during the first half of last fiscal compared to the same period in this fiscal. Sales in H2 of FY06-07 picked up and we may see a correction in growth figures year-on-year," he added.

MSIL reported 19 per cent rise in sales during April to August period of current fiscal at 2, 73,672 units against 2,30,016 units in the same period last fiscal.

The company's sales in August also showed an over 24 per cent jump at 60,229 units compared to 48,259 units in the same month last year.

Source: http://economictimes.indiatimes.com/News_by_Industry/Discount_schemes_help_Maruti_beat_interest_rate_blues/articleshow/2411848.cms

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

Maruti Plans To Launch A Competitor To The Honda Civic

After taking initial steps to compete with the runaway success of Honda City through its latest sedan SX4, Maruti Udyog, the country's largest car company is planning to launch an even bigger car by 2009-10, which will take on the likes of the Honda Civic.

Moreover, after almost a decade and a half, the company will drive into the sunset one of its oldest and most successful models, the Esteem. The entry level sedan will be replaced by a sedan version of the runaway success 'Swift', sometime next year.

According to sources, MUL has sounded its vendors to gear up to supply components for its big car project. MUL is also scheduled to launch a new compact car in 2009 that would mainly cater to the European market, but plans are afoot for its launch it in the domestic market as well.

According to industry sources, the 'big car' from MUL's stable will compete with cars in the A4 segment, which comprises the likes of Honda Civic, Toyota Corolla and Skoda Octavia Rider which come in a price bracket of Rs10-12 lakh.

MUL's plan to go to the next level is buoyed by the success of its latest offering, the SX4 sedan, which has successfully made a dent in the segment that was led by Honda's City. The big car foray is also in step with global plans of Maruti's parent company, Suzuki Motor Corp, which is seeking an image makeover from a successful small car maker to a car company with competence in bigger cars as well.

After 13 years of the launch of the Esteem, MUL has decided it is time to bring the curtains down on the Esteem. The new Swift sedan, which is expected in replacement is likely to have both petrol and diesel engine variants, in keeping with MUL's diesel strategy.

Esteem owners can rest easy, as the company would continue to provide service support the model, as it had done in the past with other models that have been phased out.

Source: http://www.domain-b.com/companies/companies_m/maruti/20070827_competitor.htm

Maruti’s Swift Sedan Coming Early Next Year

The launch will strengthen the company’s presence in the sedan market, where it currently has another model, the SX4.

India’s largest car maker, Maruti Udyog Ltd, is getting set for the launch in 2008 of a mid-size sedan built around its new global car platform, the Swift. The new car, to be launched in January-February, will give the manufacturer renewed presence in the budget segment of the domestic sedan market, where newer, more contemporary models from competitors have edged out its Esteem model.

A person close to the development said the company would launch Swift with its new-generation 1.3-litre multi–jet diesel engine and in a 1.3-litre petrol variant, priced at around Rs5.5 lakh.

Maruti officials declined to comment on future models.

MUL’s long-standing Esteem sedan has been witnessing flagging sales in the last few years. The model sold little more than 6,000 units in April-July, down from 7,011 units in the year-ago period. The model is currently available for about Rs4.5 lakh, depending on the features included, but suffers from what analysts call model fatigue.

The car, however, continues to win critical acclaim, including last year’s JD Power best entry-sedan award.

Maruti already has two diesel variants of premium hatchback Swift and a petrol offering on the same platform since its launch late last year.

The launch of the Swift sedan will strengthen the company’s presence in the sedan market, where it currently has another of Suzuki’s global new car initiatives, the SX4 model, which replaced its premium sedan Baleno. The SX4 is available for about Rs654,000 and people familiar with its performance said it sold 9,500 units between April-July, driven largely by its premium features at a very aggressive price.

MUL is, meanwhile, increasing production capacity at its Manesar, Haryana, factory. “By the end of next fiscal, the Manesar plant is likely to produce more than 250,000 cars,” this person said. The Swift has sold 141,893 units through July, with a waiting period of two weeks to two months for the car, depending on the model and features.

Sales of Indian car makers grew 22% to 10.7 lakh units in the year ended March, up from 8.82 lakh units. With the likes of Volkswagen AG, General Motors Corp., Nissan Motor Co. and Toyota Motor Co. stepping up their interest in India, MUL has been in an overdrive, launching five models and variants in just the past year and promising at least one additional model every year. The launch of the Swift and SX4, its first sedan in six years, was the first of its new initiatives.

MUL will invest an estimated $2 billion in expanding capacity and launching new products. It is also changing its name to Maruti Suzuki India Ltd, which will allow it to better leverage the Japanese car maker’s brand.

During April-June, MUL sold 160,604 units domestically, a growth of 17.1% over the year-ago quarter. Total sales, including exports, were 169,669 units, also up 17.1%. In July, MUL sold 52,839 vehicles within India, up from 44,653 vehicles in July 2006.

Maruti’s Grand Show

Of late, Maruti Udyog has changed a lot and that includes its name change to Maruti Suzuki. The Maruti brand had gathered an image of a bargain hunter’s car and not a poseur’s car.

Until Swift and, recently, the SX4, people bought dated Marutis simply because they were cheaper to buy and run.

Swift made quite an impact when it came to the market. It was perceived as a thoroughly modern car with the same affordability factor as all Marutis.

The latest to shed the company’s image as a rationed, budget car-maker is the Grand Vitara(GV) pitted against the other petrol-driven, soft-roader, the Honda CRV. Known as Escudo in some other markets, this SUV is here to do what the previous version, the XL7, couldn't do- sell!

Compared to the last generation Grand Vitara XL7, the current version has been built on a different and totally new platform. And in the process, it evolved from an off-roader to a soft-roader, having dropped the big, thirsty V6 engine and adopting a small four pot.

It has also shrunken in size from a large seven-seater to a compact fiveseater. But importantly, it has changed itself from looking dated and dull, to trendy and youthful without losing the ruggedness.

The old version was based on a chassis to improve off-road performance, but this one is monocoque to improve dynamics, with an integrated ladder frame to increase structural rigidity. That, in simple English, means, it is built in one piece and will be good on road and won’t get bent, if you take it off-road.

The overall design theme of the GV is similar to Swift. The chunky wheel arches and the pseudo vents on the edges of the bonnet lend it a touch of muscularity. The profile of the car is interesting as the wraparound tail lights originate from the same point that the rear quarter windows end. The spare wheel is mounted on the tailgate as in old-school SUVs, and adds character to the rear.

Inside, you wonder whether Maruti- Suzuki ran out of parts and resorted to searching the SX4 and Swift parts bin. The circular air conditioning vents and power window switches are from the Swift, the steering looks no different than the SX4s, the overall dash layout is similar to SX4 and even the seat upholstery reminds me about the dotted one in Swift.

The totally black interiors are well designed but do not exude the impression of a Rs14 lakh car. But they are functional with every control falling into hand and working brilliantly.

The three hooded dials with red needles and white lettering are bold and bright. The well-integrated single CD player looks good on the dash and sounds just as good.

That brings us to the engine which is a 1995 cc petrol-driven, 120 bhp, 17.3 kgm mill, based on the latest Suzuki engine platform like the SX4. It is mounted longitudinally and mated to a five-speed manual or an auto.

The engine does exhibit decent midrange performance, despite the low output and the vehicles 1.6 ton KERB weight. But it sounds coarse and strained at high revs and the low rpm response isn’t great either.

It takes about 14 seconds to reach 100 kmph and runs out of breath at 160 kmph, adequate for an SUV, or is it?

There is a shift on the fly rotary selector on the dashboard which lets you shift to low option and lock the differential. The off-road ability of the GV is miles ahead of the Honda CR-V that is brilliant on the road but pretty useless on anything less than the flattest grounds.

There is ample ground clearance in the GV in the form of 200 mm and this, along with the brilliant four-wheel drive system, ensures that you never get stuck in foot-deep mud or rocky inclines.

But, sadly, all this potential is likely to go waste with most owners confining themselves to well-paved roads.

The car always runs on four wheel drive mode which gives it great grip on the wet roads, but at the cost of fuel economy.

The body rolls slightly, but the handling is otherwise neat. The ride quality, on he other hand, is plush and superb. It runs over potholes just as if they weren't there.

So, how is it, compared to Honda CRV? Well, it may not have CR-Vs performance, handling, equipments and rich interiors, but it costs Rs 4 lakh less which makes it a lot more affordable. Yes, the interiors do feel cheap, but it has better off-road credentials and promises a plusher ride than the Honda. And being a Maruti means it will be just as reliable as the Honda. Wish it could switch off that four-wheel drive when not needed and it had that 1.9L diesel engine with which it is sold elsewhere in the world.

Maruti Raises Discounts To Drive Car Sales

India's top car maker, Maruti Udyog Ltd., has raised discounts on many of its models as demand slows amid higher interest rates, newspaper adverts on Saturday showed.

Maruti, majority-owned by Japan's Suzuki Motor Corp., has raised discounts to up to $1,090 and extended the offer to many of its models, including its best-selling Alto and the Esteem sedan, to shore up sales.

Maruti, which has nearly half of India's market for mostly small cars, has said it would be hard to match its record domestic sales of 2006/07 because of slowing demand.

The "Smile India Smile" offer introduced between Aug. 1-15 has been extended until the end of the month. The company has also included a bonus for exchanging old Maruti cars, the adverts showed.

Under the extended offer, discounts and bonuses range from 12,000 to 45,000 rupees ($291-$1,090), up from 7,000-30,000 rupees, according to the adverts.

Other vehicle makers, such as No. 2 car maker Tata Motors Ltd., have scaled back production as demand has eased.

Maruti sold 227,578 units in April-July, up 19 percent from the same period a year earlier.

As Going Gets Tough, Maruti Designs New Ways

For the past few weeks, Maruti Suzuki managing director Jagdish Khattar has been visiting many of his over 120 key vendors. He has also been meeting main dealers and even the shop-floor workers in his factories. All these meetings have been held to convey a simple message: pull out all stops to boost sales.

Maruti, much like other car makers, has been struggling to maintain growth momentum in a market where high finance costs are affecting many of its flagship brands. Realising that a bearish market sentiment could play havoc with its retail sales, the company has begun thinking of novel ways to generate extra sales.

Khattar said over the past two-and-a-half months, the combined pool of vendors, dealers, business associates such as companies that provide insurance to Maruti cars and shop-floor employees have helped him generate incremental sales of over 22,000 units.

"We realised at the beginning of this year that the market was likely to be impacted by the increase in finance costs. These initiatives have been charted out to spur sales and they seem to be working satisfactorily," he said.

For example, dealers and vendors of Maruti have been encouraged to incentivise their own employees by giving them cars; Maruti’s shop-floor workers are being offered between Rs 1,000 and Rs 1,500 as incentive for making referrals that translate into sales.

Under "Wheels of India" scheme, the company has sold over 1500 cars to
government officials over the past two months whereas almost 7,000 have been sold due to employee referrals over the same period. But is generating sales through innovative schemes enough for Maruti to maintain its lead in the passenger car market?

In the latest annual report, Khattar himself has acknowledged that a
major challenge before the company is keeping costs under check. Besides, Maruti’s overwhelming dependence on the domestic market could also cause concern.

"With competition hotting up, stringent automotive regulations and high customer expectations, there is a likelihood of increase in costs, putting pressure on the company’s margins. Increase in commodity prices puts further pressure," Khattar said.

Maruti And Fifty Thousand Luxury Condominiums

As a small kid, in the early 1980s, I grew up in the suburban town of Gurgaon - then more known for growing wheat and vegetables than rampaging Toyota Qualises ferrying sleepy teenagers.

Things changed in 1983 when the government set up Maruti, in collaboration with Suzuki, and its car manufacturing plant came up on the outskirts of the town in a huge tract of land - approximately five square kilometres, or more than a 1,000 acres. Those were dull times - land was cheap. The government probably paid not more than INR 20,000 per acre for the tract, if at all.

Cue 2007. Times have changed. Blame it to rapid industrialisation, the scorching growth pace of the service industry and the speculative behaviour of the realty business, land in the vicinity is floating at around INR 60,000 per square yard. Even if one was to look at a bulk deal, Maruti's 1,000 acres will fetch a cool INR 150 billion!

That is USD 3.3 billion!!

That's exactly the sum that Suzuki (Maruti's parent) wants to invest in India over the next few years.

The above may be a completely worthless and stupid calculation, considering that Maruti has to make cars at the plant and while a potential fifty thousand luxury condominiums, ten malls, a couple of IT parks and some commercial buildings have the potential of turning the Gurgaon realty scene on its head, this is little more than wishful thinking...till I start looking at the scene from a different perspective.

Maruti's second plant at Manesar is operational and being a huge facility in itself can be potentially expanded to a million units, the company's target for the near future.

The Manesar facility is close to Maruti's existing Gurgaon plant so it won't affect logistics to a great extent. Theoretically, production can be shifted from the Gurgaon plant to the Manesar plant, in phases to maintain smoothness. Already the Swift line is at the Maneasr plant and the SX4 sedan should be getting put together there as well. The models that are not being built at Manesar currently can be shifted there, model-by-model, in 2-3 years, all except the 800, which might be on its last wind by then.

And in case the Manesar plant proves small then Maruiti-Suzuki can set up another one in the nearby upcoming Reliance SEZ. The SEZ plant can be used for exports and will benefit from duty waivers as well.

While looking at its plant as an asset in this sense may not be in Maruti's idea of things for now, the plant itself is as juicy as they come. Once on the outskirts, it is now as central as one can be in a place like Gurgaon with easy connectivity to the old town as well as the new areas. The plant has a huge frontage on the old Delhi-Jaipur road and is a few hundred metres away from the busy NH-8 expressway. There are already premium residential complexes, a planned golf course and a large number of software and services companies (their employees would love to live in the luxury condos that come up at the MUL plant site) in near vicinity with a bunch of existing and planned five-star hotels within a 3-4 kilometre radius. Heck, even the international airport is a few kilometres away.

With MUL's proven clout with the government, things like Change of Land Usage (CLUs) etc. will not matter,. The company's management, alongwith potential prospective buyers DLF and Unitech, can even arm-twist the government to bring a Delhi Metro link from the planned Gurgaon extension to the existing plant's rear gate. That should bump the price of the condos and ensure that the builder, who buys the land, makes a neat profit as well. The plant has the potential of becoming the largest single township in the NCR-Delhi region or even 2-3 big townships, in case one builder finds it difficult to shell out this much moolah.

So has Maruti ever thought of doing this? Maybe. More likely, maybe not!

Far more importantly, have the stock analysts factored in the land value in MUL's share price? If not, spread the word, and watch the stock spiral away.

Maruti Offers Discounts To Boost Car Sales

Maruti Suzuki Ltd., is offering discounts of up to $743 on many of its vehicles to shore up sales, newspaper advertisements at the weekend showed.

Maruti, which has nearly half of India's market for mostly small cars, has said it would be hard to match its record domestic sales of 2006/2007 because of firm interest rates that have slowed demand for vehicles.

Maruti, in which Suzuki Motor Corp. owns 54.2 percent, has said it would limit the impact of high interest rates with dealer incentives and customer discounts. It ran a discount offer in June.

The "Smile India Smile" offer, which runs from August 1-15, offers discounts ranging from 7,000-30,000 rupees ($173-$743) on several models, including its best-selling Alto and the Esteem sedan, the advertisements showed.

The scheme was being offered countrywide, a spokesman said.

Other vehicle makers, including No. 2 car maker Tata Motors Ltd., have scaled back production on the softer demand. A senior banker said on Friday the slowdown would persist until interest rates fell by at least 100-150 basis points.

Maruti, which is seeking shareholder approval to change its name to Maruti Suzuki India Ltd., is trying to shift consumers to bigger, more high-margin cars and launched the SX4 sedan in May and the Grand Vitara sport utility in July.

Maruti has sold 227,578 units in the four months to end-July, up 19 percent from the same period a year earlier.

Maruti Leaves Competition Far Behind

Auto makers didn’t have much to cheer about last month. Though new launches helped some auto makers grow their sales tally, majority reported a decline in sales in July.

Auto analysts have pegged the car market’s growth for last month at just 8-9% and this is largely due to Maruti’s healthy double digit growth. Two-wheeler manufacturers continued with their dismal show and posted negative growth for the month.

Market leader Maruti Suzuki’s cumulative sales were up 24.8% to 57,909 units as compared to 46,408 units sold in July 06. While the company’s domestic passenger vehicle sales grew 18%, its passenger car sales was up 17.8% at 52,315 units.

Maruti Suzuki India managing director Jagdish Khattar said the company clocked high double digit growth despite the subdued demand for passenger cars. “June and July have been tough for the industry due to increase in interest rates,’’ he said. Maruti exported 5,070 units.

Tata Motors posted a 6.7% decline in sales of passenger vehicles at 17,011 units while its commercial vehicles sales were down 3.8% to 20,705 units. The company’s total sales were down 6.6% selling 42,098 vehicles.

Ditto for Korean major Hyundai Motor India whose domestic sales were down 7.4%. The company said domestic sales suffered because it was servicing export orders. Thanks to Hyundai’s 16.6% gain in exports (13200 units) Hyundai’s overall sales in July were up 14.6% to 28,203 units.

Japanese car maker Honda Siel Cars India’s sales were down 17%. Skoda Auto India continued to sell few vehicles and posted a decline of 15.4%.

American car maker General Motors India however managed to grow by high double digit figures due to its new small car Spark. The company’s sales were up 89%,

Mahindra & Mahindra which rolled out its two millionth vehicle in July, posted a 49% increase in domestic sales selling 18,356 units against 12,841 units in the same month a year ago. The company’s exports during the month, however, declined 4% to 627 units against 655 units last year, M&M said in a statement.

Mahindra-Renault sold 2,890 units of its flagship sedan Logan in July. The company said its Logan and SUV Scorpio continue to lead in their respective segments. Analysing the auto sales in July, Price Waterhouse partner Abdul
Majeed said, “Car sales are down because the increase in interest rates have hiked home loan EMI’s.

So the consumers are not ready to spend on a new car. The trend is likely to become positive by the festive season.”

Two-wheeler market leader Hero Honda’s total sales for the month of July ,dipped to 2.01 lakh units over 2.35 lakh units in July 06. Arch-rival Bajaj Auto sales were down 6% to 1.62 lakh units. Its motorcycle sales were down 7% to 1.59 lakh units.

The company in a statement said that motorcycles continued to struggle, owing primarily to product fatigue in the 100-cc segment and said that the 100 -cc plus segments are growing.

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.