[December 28, 2010] Maruti Suzuki to launch seven models in fight to retain lead Tweet Dec 28, 2010 (Mint - McClatchy-Tribune Information Services via COMTEX) -- Maruti Suzuki India Ltd, the country's biggest car maker, plans to launch at least seven models in the next 2-3 years as it bids to regain the market share it has recently lost to rivals. The predominantly small car maker is looking to expand in other segments as well--such as larger sedans, utility vehicles and small sport utility vehicles (SUVs)--although it will continue to unveil more small cars, senior executives said. "There are a lot of plans in the pipeline. Once our new assembly line comes in action at Manesar, you will get to see a slew of new models from our stable," said M.M. Singh, managing executive officer, production and supply, Maruti. "At present, we are trying to squeeze out whatever we can from the current capacity." "There will be a sedan equivalent to Esteem, a small car in the Alto segment and a compact SUV," said a senior official in the production division of Maruti's plant in Gurgaon, asking not to be named. "Moreover, there will be the usual upgrades. A new Swift will be coming along with a SX4 diesel." Maruti is set to launch its most expensive product yet, the Kizashi sedan, in January, followed by the RIII utility vehicle later next year. "The company doesn't want to be caught napping. The market is set to grow at a rapid pace and we would like to maintain our leadership," said the official quoted earlier. Maruti's market share has fallen in recent months as buyers have had to wait for up to 3-4 months for the delivery of some models. New rivals have also entered the market, pulling down Maruti's market share from 52% in the 2009-10 fiscal year to 44% in the first eight months of the current fiscal year. "I don't think we can sustain leadership without launching new models," said Shinzo Nakanishi, Maruti Suzuki's managing director and chief executive. "We will diversify into other segments. We are exploring the possibilities of bringing in Jimny--a compact SUV." Another executive said Maruti is in talks with Suzuki Motor Corp.--its parent company in Japan--to discuss future products. "We are continuously reviewing product possibilities. Our end goal is to satisfy customers' demand," said I.V. Rao, managing executive officer at Maruti Suzuki. "We do not have a diesel version of Gypsy. There are discussions going on with Suzuki and we feel that segment (compact SUV) is growing at a rapid pace." Maruti has an installed capacity of 1 million units a year at its Gurgaon and Manesar facilities in Haryana. It says it can produce 1.2 million cars a year by "debottlenecking" certain operations on the shop floor. "This does not require major investment. We have invested '40-60 crore as of now," said Singh. To capture a greater share of the market, the company is also trying to advance the start of two greenfield production lines in Manesar. Maruti will add a '1,700 crore, 250,000-unit assembly line at its existing facility, it had said in March. The car maker expects this line to be ready by March 2012, which would lift its capacity at Manesar to 550,000 units a year. The company has also announced it will set up its fourth plant in Manesar at an investment of '1,700 crore. But an analyst said Maruti will still struggle to meet demand. "See, nobody had predicted this kind of growth. So, you don't know how the market will grow in the next three years," said Jinesh Gandhi, sector analyst at Motilal Oswal Securities Ltd. The domestic car market is expected to grow 20-25% this fiscal year. Car sales rose 32.40% year-on-year in April-November to about 1.3 million units. "Maruti is still not able to meet 15-20% of the demand for its vehicles," Gandhi said. "Although it is gearing up for the future, a lot will depend on how market performs in future." To see more of Mint, or to subscribe to the newspaper, go to http://www.livemint.com. Copyright (c) 2010, Mint, New Delhi Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com. [ Back To TMCnet.com's Homepage ]