| |
Maruti
Suzuki to launch 'World Car' from India by end -2008 |
| |
|
| |
The Economic
Times
Mumbai: Suzuki Motors' next world car will come from its venture at Gurgaon,
near Delhi, by the end of 2008, Shinzo Nakanishi, managing director of Maruti
Suzuki India, has said.
"The new model will be launched by end-2008," he said. "To begin with, we
have plans to export 100,000 units of the new model annually to Europe and
the rest of the world," Nakanishi said in an interview.
The Manesar plant at Gurgaon was set up under a joint venture company, called
Maruti Suzuki Automobiles India in which Maruti Udyog Ltd holds 70 per cent
equity while Suzuki Motors of Japan holds the remaining.
The total investment in the new car plant was Rs 15.24 billion ($384 million).
The capacity of the plant will initially be 100,000 cars per annum, with
a potential to scale it up to 250,000 units.
"I believe that Maruti Suzuki is ready to play a much bigger role in Suzuki's
global operations, and my task is to make that happen," said Nakanishi,
who took over as managing director December 19 last from Jagdish Khattar.
"Today the company's manufacturing capability has reached a level where
we want to make small cars exclusively in India for exports to the European
markets."
In fact, Maruti Suzuki has created a new record in 2007-08 by selling 764,942
vehicles, the highest ever in its history, marking a 13.3 per cent growth
over the previous fiscal.
The total sales figure of 764,942 includes export of 53,024 vehicles, again
the highest since it started production in 1983, and marked a growth of
34.9 per cent in its exports.
A member of Suzuki Motor's board of directors worldwide, Nakanishi expressed
confidence that the auto major would be able to "maintain its leadership
in the Indian auto market".
Suzuki currently holds a 54-per cent stake in Maruti Suzuki India.
"Of the three million cars that Suzuki wants to sell worldwide, almost 30
per cent would have to come from Maruti Suzuki India," Nakanishi explained.
He said that in the recent past, Maruti Suzuki has started sharing its good
sales and service practices with other Suzuki companies worldwide and this
flow would gain further momentum in the coming few years.
"A 50-per cent-plus market share - and we are leading in terms of sales
growth and customer satisfaction. As for the future, we are focused on the
goal of achieving one million domestic sales by 2010-11," he said.
"This will require us to expand capacity and continuously upgrade manufacturing
facilities, for which we have already announced an investment of Rs 90 billion
($2.3 billion)."
Expansion of sales and service network is also under way for achieving the
target of manufacturing one million cars, Nakanishi added.
Asked about the company's global strategy in the wake of the changed scenario
in the automobiles sector, Nakanishi said Suzuki Motor has embarked on a
strategy of "World Strategic Models" to drive its long-term growth.
As part of this strategy, the company has been developing "global models
which are European in overall styling and design, and carefully modified
to suit local markets".
"What this means is that the Indian customers get international levels of
quality and design. Specifically for India, 'Splash' and 'A Star' models
will be introduced here as part of our overall World Strategic Model approach."
Asked about the dip in the sales of its popular people's car Maruti 800
and any possible plan to phase out the car, he replied there were no plans
as such "in the immediate future".
According to the latest figures released by the company entry level Maruti-800
recorded a dip of 12.2 per cent in its sales over 2006-2007. |
|