Maruti Suzuki exports one millionth vehicle

Mumbai: Maruti Suzuki exported its one millionth vehicle here today. To be sold in Denmark the red colored A-star left the Mundra coast line along with 2,200 other vehicles for various international destinations including Switzerland, Malta, Sweden in Europe and Algeria, Egypt and Morocco in the non European destinations.

" Two years back, Europe was a strong destination for us. We have aligned our exports strategy in line with the changed scenario in exports market. The market for us has shifted significantly from Europe to non-European countries," said Shinzo Nakanishi, Managing Director & CEO, Maruti Suzuki India Limited.

While the A-star, marketed under 'Suzuki Alto' and 'Suzuki Celerio' badge in international markets was doing well, we also worked on identifying alternate non European markets. This strategy worked in our favour and helped us retain our export numbers after European nations withdrew the scrappage incentives, said Nakanishi.

In 2009-10, Maruti Suzuki's total exports were over 1.47 lakh units. Of which over 75 per cent were to Europe. By 2011-12 the share of non-EU export sales shot up sharply from 23 per cent to 66 per cent. In coming times, the Company plans to expand its presence in newer markets including the ASEAN region

Nissan works on low-cost cars for Indian market

Mumbai: In a bid to aggressively compete against the top three Indian car makers, Maruti Suzuki, Tata Motors and Hyundai, Nissan is working on a slew of small car projects to be introduced in India under a new brand Datsun, starting 2014.

These low-cost cars from Datsun will fight for space in the price bracket of Rs 2-4 lakh, where the country’s highest selling model, Maruti Suzuki Alto, currently sells. Hyundai’s entry level car, Eon, and Tata Motors' Indica also sell in the space.

Nissan says the company is on course to launch two such models in 2014, and will progressively look at adding products at similar price points later. Datsun products will utilise Nissan and Renault's installed capacity at Chennai.

Nissan, the second largest automotive brand in Japan, is the second such company in India after Volkswagen to have refrained from entering into the low-cost segment using its own brand. Nissan-badged vehicles will sell above the Rs 4 lakh price tag in India.

Besides India, the Japanese company is looking to share the Datsun brand, which was progressively discontinued 25 years back, in emerging markets like Indonesia and Russia. Matured markets like the US, Japan and western European markets are not chosen for launching the Datsun brand.

Products under Datsun will have their unique platforms, besides their own vehicle technology. These products will be market specific, with limited or no scope for exports. Though Nissan officials did not provide details about Datsun's product plans, market reports say that one of the two products could be the one which is under development with a subsidiary of Ashok Leyland.

Ashwani Gupta, programme director, Datsun Business Unit, said, "The Datsun brand will be catering to the affordable segment with modern technology and generous features. These models will be developed locally and have a high local content and engineering.”

Targeting first-time buyers, Datsun's products will be aimed at buyers of used car or motorcycle. Hover Automotive, which handles sales, service and distribution of Nissan-branded cars in India, will also sell the Datsun brand. Thus, both brands will be sold under the same roof. Nissan is targeting about half of its sales to emerge under the Datsun brand. Product line-up and investment details will be disclosed at a later date, informed a Nissan official.

Carlos Ghosn, chief executive, Nissan Motor Company, said, "It's not going to be a global brand with global products; it’s going to be a global brand with very specific products adapted to market needs. We want to bring something much more modern."

Introduced in Japan in 1931, the Datsun brand established a strong foothold for the Japanese car maker in the all-important US market, beginning in the 1960s. But the nameplate was completely discontinued by 1986 globally in favour of the Nissan brand.

With the entry of Datsun, Nissan's entry level car will be Micra (priced at Rs 4.21 lakh, ex-showroom, Delhi). Among other models, Nissan also sells Sunny, Teana, Xtrail and the 370Z in India.

Maruti Suzuki yet to firm up land requirement for Gujarat plant

The country's largest car-maker Maruti Suzuki is yet to firm up the land requirement for its proposed new manufacturing plant in Gujarat.

"We do have plans to go to Gujarat and preliminary talks have been already held with the state government. But nothing has been decided on when and how much land will be acquired there," Managing Executive Officer (Engineering) of Maruti Suzuki I V Rao told reporters here today.

He said that the idea behind the Gujarat plant was to serve export markets through the Mundra port.

"The matter has not been placed before the board for approval yet," Rao said at the launch of new Swift Dzire sedan here.

Rao said the Gujarat idea was floated in May, 2011, when the industry was growing at a healthy rate of 18 per cent.

But with the slowdown in car sales subsequently, no progress had been made in this regard, he said.

With SIAM predicting annual growth of 10 per cent in the automobile segment next few years, the Gurgaon and Manesar plants would suffice to meet the demand.

Post completion of the third plant at Manesar, Maruti's annual production capacity would touch 1.75 million units.

He said that steps were also being taken to reduce the waiting period for diesel cars by increasing production.

Maruti Suzuki India to invest Rs 3,000 cr in 2012-13 on capacity expansion, new model launches

NEW DELHI: The country's largest car makerMaruti Suzuki India on Tuesday said it will invest about Rs 3,000 crore in 2012-13 financial year on various areas, including expanding capacity and new model launches.

The company is at present investing about Rs 4,000 crore in this fiscal primarily on setting new assembly lines inside its Manesar facility, marketing, R&D and new model launches.

"For next fiscal, our capex plan is about Rs 3,000 crore. We will inevest on expanding capacities, new model launches, marketing activities and R&D," Maruti Suzuki India (MSI) Chief Financial OfficerAjay Seth told analyst in a conference call.

For this financial year, the company will put in about Rs 4,000 crore in various activities, he said, adding, one third of the amount could be carried over to the next fiscal.

The company is setting up two new plants inside Manesar with 2.5 lakh annual capacity each at a total investment of Rs 3,625 crore. The first of these two plants is likley to be operationalised during September-October this year, while the other one is scheduled to be operational in 2012-13.

MSI had rolled out nearly 9.5 lakh units from its Gurgaon facility and 3.5 lakh units from the existing Manesar plant in the 2010-11 financial year.

Besides, the company is also investing Rs 2,500 crore for its K-series engine plant and setting up a dedicated R&D facility at Rohtak in Haryana.

The company spent 0.7 per cent of its net sales in R&D activities during April-June period this year as against 1.1 per cent in 2010-11, Seth said.

On account of spurt in demand of diesel cars, the company is increasing the production capacity of diesel cars to 2.9 lakh units annually from existing 2.4 lakh units. It sells diesel options of hatchbacks Swift and Ritz and sedans DZiRE and SX4.

"Diesel cars sales have increased to 60-80 per cent after de-regulation of petrol," Seth said, adding, they contributed 21 per cent to the total sales in first quarter compared to 19 per cent in the year-ago period.

The company will also ramp up the diesel engine capacity to 3 lakh units from 2.4 lakh units by the end of this fiscal. Diesel engines are produced by a separate entity --Suzuki Powertrain India Ltd -- at the Manesar facility.

Seth said the company's current import content stands at about 15 per cent, which MSI is planning to bring down by 2-3 per cent every year till next fiscal.

MSI today reported 18.02 per cent increase in net profit for the first quarter ended June 30 to Rs 549.23 crore from Rs 465.36 crore in the same quarter last fiscal.

Total income from operations during the quarter stood at Rs 8,529.30 crore as against Rs 8,309.18 crore in the same period last fiscal, an increase of 2.65 per cent.