Maruti to launch new Swift, Dzire in 2014

Indian automobile manufacturer Maruti Suzuki may launch the face lifted versions of the Swift hatchback and Dzire compact sedan in the first quarter of 2014. These new variants are likely to be showcased at the 2014 Indian Auto Expo.

 

 

Swift is Maruti’s largest selling premium hatchback in the country and has been a hot favorite of the masses in this segment since 2005, the year when it was introduced in India.

 

The company has a plan to make the diesel engines in Japan for upcoming Maruti models in India. The future growth of diesel vehicles in India will be going to good and thus Japanese parent Suzuki is becoming a helping hand for the making of engines and though Suzuki is making two in house engines.

Maruti Suzuki launched the Swift in 2005 and ever since the car has been a runaway success. In late 2011 the all-new Swift was launched which took the game even further. The Japanese carmaker has never rushed in to give their products a facelift, but stiff competition has ensured that no car company can rest on their laurels.

 

The Swift leads the Premium hatchback or B+ segment and the Swift Dzire also leads the compact sedan segment. The Swift and the Dzire will get updated  and seems like Maruti will showcase the face lifted versions at the 2014 Indian Auto Expo, if rumors are to be believed the face lifted versions are expected to hit the showrooms by first quarter next year.

Maruti Suzuki's launches new SX4 at Rs. 7.38 lakh

The country's largest car maker Maruti Suzuki India Ltd launched an all new version of the SX4 with price remaining unchanged in the range of Rs. 7.38 - 9.79 lakh (ex-showroom Delhi).

"The all new Maruti Suzuki SX4 has new looks, and also brings new features such as touch screen audio navigation and electronically foldable ORVMs with turn indicator," said Manohar Bhat, Maruti Suzuki India's vice president for marketing, in a statement on Friday.

 

 

The country's largest car maker Maruti Suzuki India Ltd launched an all new version of the SX4 with price remaining unchanged in the range of Rs. 7.38 - 9.79 lakh (ex-showroom Delhi).

"The all new Maruti Suzuki SX4 has new looks, and also brings new features such as touch screen audio navigation and electronically foldable ORVMs with turn indicator," said Manohar Bhat, Maruti Suzuki India's vice president for marketing, in a statement on Friday.

 

 

 

"The all new Maruti Suzuki SX4 has new looks, and also brings new features such as touch screen audio navigation and electronically foldable ORVMs with turn indicator," said Manohar Bhat, Maruti Suzuki India's vice president for marketing, in a statement on Friday.

 

 

The new SX4 comes with many features including an all new touch-screen audio with integrated navigation with Bluetooth.

 

 

The SX4 was first launched in India in 2007 and a diesel variant of the car was introduced in 2011. Till now, the company has sold over 1.08 lakh SX4 cars in the country.

Maruti Suzuki introduces all new Swift hatchback

Maruti Suzuki India Limited, India's largest car manufacturer unveiled its much awaited sportier and stylish car, the all new 'Swift'.







The new Swift offers best in class acceleration, high power to weight ratio and much improved fuel efficiency. With over 140 new features, many for the first time ever in an entry level variant, the new Swift is set to once again redefine "premium compact" car segment, a segment that Swift had itself created.

The new Swift is built on an all new platform and is longer and wider than its predecessor.







Maruti Suzuki engineers have adopted several new weight reduction techniques for an enhanced power to weight ratio in the new Swift. As a result, while new Swift delivers a power-packed and sportier drive, it also offers more kilometers to every drop of fuel: 6 per cent more in diesel and 4 per cent more in the petrol version. In addition, the Company has introduced the VVT engine technology in all petrol variants of the new Swift. The highly acclaimed DDiS engine powers the diesel variant of the new Swift.

Maruti Suzuki and its suppliers have invested over Rs. 550 Crore to make the new Swift more vibrant and sportier. The next generation Swift comes with a localization level of over 95 per cent.

The Swift is iconic and special in many ways. It entered the Indian car market and became a segment reference point, a blockbuster, by selling over 600,000 units in 6 years making it by far the highest selling car in the premium compact segment.

Maruti Suzuki is confident that with the new Swift the company will further strengthen and expand its position in the premium hatchback segment.

Speaking at the launch, Mr. Shinzo Nakanishi, Managing Director and CEO, Maruti Suzuki said, "We have launched the new Swift at a time when there was significant demand for the outgoing model. In keeping with the Swift's iconic status, we had to ensure that the brand continues to offer the latest and the best in terms of features, design, performance and aspiration. I am confident that the new Swift will create new benchmarks with its improved fuel efficiency, stylish & sportier looks and high performance."

Hyundai to Introduce New Models in India

Hyundai Motor Co. will introduce two new vehicles in India each year until 2014 in a bid to retain its position as the second-largest car maker in Asia's third-biggest automotive market amid stiff competition from recent entrants Volkswagen AG, Nissan Motor Co. and others.

"We will have new products in all segments," Arvind Saxena, director of sales and marketing at Hyundai Motor India Ltd., told Dow Jones Newswires in a recent interview. "New products play a vital role in boosting sales."

Hyundai will soon start selling an upgraded version of its mid-sized sedan Verna as part of this product introduction plan, he added.

The company also makes small cars Santro, i10 and i20 and sedans Accent and Sonata at its factory near the southern port city of Chennai and imports and markets the Santa Fe sport-utility vehicle.

Global auto makers are queueing up to take advantage of the robust Indian economy and rising personal incomes that have helped boost demand for new two-wheelers, cars and sport-utility vehicles.

Volkswagen, Ford Motor Co., Nissan Motor, Renault SA, Toyota Motor Corp. and others have either introduced small cars or plan to do so in the near future to cater to the record-growing demand.

New car local sales jumped 30% in the financial year ended March 31--the fastest in more than a decade--to 1.98 million vehicles.

But newer entrants are challenging the dominance of older, more established auto makers including that of Maruti Suzuki India Ltd. and Hyundai. The two have already lost some market share in the past year because of increased competition.

"Going forward, we are confident that we would retain our market share. New models will help us in doing so," Mr. Saxena said.

Market share of the local unit of Suzuki Motor Corp in India fell to 48.7% in the year through March from 50.1% a year earlier, while Hyundai's share stood at 18.1% from the 20.6% it held a year earlier, according to data from industry body Society of Indian Automobile Manufacturers.

Hyundai Motor India aims to sell at least 400,000 cars and SUVs locally in 2011, up 12% from last year's 356,717 vehicles. Still, the sales growth will be nearly half of last year's 23% rise as increasing interest costs and rising prices of raw materials such as steel, aluminum and natural rubber will likely dent demand, Mr. Saxena said.

"There would be a moderation in the whole industry. We will also grow at a similar pace," he said.

Hyundai Motor India plans to raise prices of all its vehicle models between 1% and 1.5% by Saturday due to higher commodity prices, Mr. Saxena said, marking the company's second price since January due to higher input costs.

Hyundai follows Maruti, Tata Motors Ltd., Mahindra & Mahindra Ltd., Toyota Kirloskar Motor Pvt. Ltd., Nissan Motor India Pvt. Ltd. and others that have all raised prices twice in 2011.

Also, exports of Hyundai--India's largest vehicle exporter--are expected to fall 11% in 2011 to 220,000 vehicles owing to weak demand for small cars in Europe.

The auto maker sells 'made-in-India' small cars to 118 countries globally and its i10 small car is made exclusively in India for the global market.

Riding on economic prosperity, car sales zoom

One of the most revealing indicators for economic prosperity of a country is the growth of the automobile sector, specially the sales of cars. Booming car sales thus conclusively indicate that the Indian economy is doing well.

Fourteen players in the car industry together sold 19.83 lakh cars in the financial year 2010-11, a whopping 30 per cent more than 15.28 lakh cars sold in the previous financial year. Surely the Rs 100,000 crore Indian car has found a place in the world map by becoming the fastest growing in the whole world.

“The impressive growth witnessed by the auto sector appears primarily to be driven by the strong revival of demand spurred by ongoing growth momentum of the economy,” said Society of Indian Automobile Manufactures (SIAM) Senior Director Sugato Sen. “The growth rate would have been still better had there been no global slowdown.”

Agreed Toyota Kirloskar Motors Deputy MD Shekhar Viswanathan “Rapidly rising disposable income of Indian middle class is fuelling the growth of the car industry.”
Though the industry did extremely well, same was not true for every one. While aggressive new players ate away market share from the incumbent players, some old ones actually slowed down.

The market leader, Maruti Suzuki India with 49 per cent market share pushed up its car sales by 26 per cent to 9,66,447 in 2010-11, the second largest Hyundai Motor India grew 14 per cent. Tata Motors which sharply revived sales of country’s smallest car Nano, sold 2,56,202 cars, 27 per cent more than the previous year. Ford India and General Motors too did well. (See table)

But there were a few laggards. Honda Siel Cars sold 58,951 cars, 3.87 per cent lower than previous year, Fiat India’s sales was down 15 per cent and Hindustan Motors dropped 20 per cent.



Action speaks

Mixed fortunes among the car manufacturers in 2010-11 also demonstrated the fact that those who were more active in terms of new launches and refreshments did better than those who were not. Maruti Suzuki, for example, re-launched all its old models with much superior K-series engine. Maruti now has this new petrol engine in Alto, Ritz, A-Star, Zen Estilo, Wagon R and in Swift. The new K-series engine not only provides much better mileage than the earlier engine but also generates more power to the car.

“The primary factors that helped us to boost our sales is introduction of new fuel efficient K-Series engines in virtually all the models. Result of intensive in-house research and development efforts, this engine boosted the image of our cars,” Maruti Suzuki India Chief General Manager (Marketing) Shashank Srivastava said. “It helped us keeping ahead of our competitors and has considerably improved our portfolio in the auto market.” Maruti also introduced a diesel version of its sedan SX4 and also launched a luxury sedan Kizashi. Hyundai too introduced a more fuel efficient Kapa engine for its small cars.

New launches and refreshment also helped others. Hyundai launched new i10 and new Verna, Ford India’s Figo, Nissan Motor India’s Micra, Vokswagen’s Polo, Toyota’s Etios and Skoda Auto India’s Fabia are a few good examples of how excitement created with new models helped them sell more.

During the fiscal, Tata Motors launched the all-new Tata Indica eV2, Tata Indica Vista Drivetech4, Tata Indigo e-CS, new Tata Manza, Tata Venture and the Tata Aria. Said Viswanathan of Toyota, “There is a huge excitement for our new car Etios and we have 5 months waiting period for it.

Now that we have started the second shift in the new plant our monthly production has gone up to 6,900. Hopefully we will be able to clear the backlog soon.” According to SIAM President Pawan Goenka the passenger vehicle segment saw 24 new launches and 40 refreshed versions in 2010-11.

Small is big

The other interesting feature of the Indian car market is that although there were several hyped up launches of big and expensive sedans, the small car segment continued to rule Indian roads in 2010-11. Small and compact cars accounted for 78 per cent of industry’s total sales. In the A1 segment, Tatas revamped their entire strategy on Nano which led to its sales zooming to 70,432 in 2010-11, more than double of 30,350 it sold in the previous year.

To arrest the sagging sales of Nano, Tata Motors changed the earlier plant to sell Nano only through pre-booking to open sales about six months ago. As open sales began the company created the necessary sales, marketing and finance infrastructure. In addition to 617 odd regular sales outlets the company set up Special Nano Access Points (as of now about 210 across the country) where customers can experience, test-drive of the car.

To build consumers’ confidence the company unleashed huge advertising campaigns through print and television media and also offered a 4-year or 60,000-km (whichever is earlier) manufacturer’s warranty. The company also tied up with 28 banks and non-banking finance companies to offer loans up to 90 per cent of the value at easy rates.

“The impact of these initiatives can be seen in the progressively growing monthly sales of Nano-- from 5,784 in December 2010 to 8,707 in March,” said Tata Motors Vice President R Ramakrishnan. As the company’s plant at Sanand, Gujarat, reaching almost the full capacity, Tatas may soon have to build another plant for Nano, said Ramakrishnan.
Speedy sales growth of Ford Figo, Nissan Micra, Chevrolet Spark and Beat, Hyundai i10, Maruti Alto and Swift also point to the fact that small and compact cars are in great demand. No wonder Toyota is planning to launch a hatchback small car Liva and Honda a small car Brio around June this year. To complement its offerings GM will soon launch Beat with a one litre diesel engine. Said GM India Director Marketing P Balendran, “We have done very well in 2010-11 as our two small cars Spark and Beat together sold around 72,000 and Cruze has seen good pick up in demand.”

Exports stagnate

Another interesting trend is that India is slowly but steadily emerging as a export hub for cars. The country exported 447,403 cars in 2010-11, almost same as previous year. Hyundai Motors which exports i10 and i20 from its plant in Chennai exported 2.33 lakh cars, Maruti exported 1.36 lakh cars and the new player Nissan India exported 55,000 cars. With the demand pick up in the European market, exports of cars from India in the current year are expected to be much higher.

Growth to slow down

The boom story in 2010-11, however, may not be repeated in the current financial, fears car makers. Both Balendran and Viswanathan feel that car sales growth in the current year may slow down to around 15 to 17 per cent as against 30 per cent growth last year.

Reasons are several: hike in interest rates, increase in commodity prices (steel, copper, plastics), overall inflation in the economy lowering the disposable income, rising wage cost and above all very high prices of petrol and diesel. “Current year scenario is not as rosy as it was last year. Costs have gone up for almost everything, but there is a limit to which we can pass on the cost.”

Balendran of GM thinks that apart from all round increase in cost, steep and frequent rise in interest rates will severely affect customers’ ability to take loans. “This is big problem as 85 per cent of cars in India are bought with loans” he said.

Maruti All Set To Launch Their First Made In India Car

Maruti Suzuki India Limited, is the largest car company and automobile manufacturer having near about half of the domestic car market share. Its all time hit models like Maruti 800, Maruti Alto and recent models like Maruti Swift, Wagon-R, DZire are known to all. Now the company is planning to launch its first completely made in India New Cars by 2012 and final design of this model will be released in the first half of next year. Final work on the design and other aspects is in full swing, as reported by a source.

Also according to information this complete made in India Maruti car will be placed along with small car segment like Maruti Alto and company is working really hard to launch this Maruti car by 2012 and to make this car also a grand success.

Maruti Suzuki partial subsidiary of Japanese auto giant Suzuki, is working seriously for the company's future car models and also on its growth programme. To carry on development programme of this Maruti car, company is planning to invest a sum of Rs 1,500 crore at in the next 3-4 years time at Rohtak R&D center which is the only center having equipments and standards comparable other than one in Japan. Main manufacturing plant of Maruti Suzuki is located at Gurgaon and Manesar which have annual capacity of more than 7 lac units. One of the spokesperson without disclosing the information about new car told that Maruti Suzuki India is always eager to satisfy their customers and will always work towards the technological development and better facilities.

Also if reports are to believe Maruti Suzuki India Limited is launching this first made in India model to challenge other competitors like Hyundai Motors and to better companys grip in the domestic market.

And to further adding to it, Hyundai Motors is also engaged in designing and developing a model which will be placed below Hyundai Santro to compete with Maruti Alto. So those who are not interested in buying a car in near future may wait for these models to change their minds and make decision.

Maruti hikes prices by up to Rs7,500 across segments

The country's largest car maker Maruti Suzuki India raised the prices of all its models, expect Alto, by up to Rs7,500, citing a sharp increase in input costs.

The new prices are applicable with immediate effect, the company said.

"Due to a sharp increase in the input costs, Maruti Suzuki India has decided to pass on a part of this cost impact to customers," the company said in a statement.

The price revision, however, will not include its largest selling model Alto, it added.

"The approximate price revision on various models (Ex Showroom, Delhi) ranges between Rs2,000 and Rs7,500. The price increase ranges between 1% and 1.5%," the statement said.

The hike comes on a day when the company reported its best ever domestic monthly sales for July at 90,114 units, a 33.45% increase from 67,528 units in July 2009.

Maruti Suzuki India today reported 29.18% jump in its total sales, including exports, for July at 1,00,857 units. It had sold 78,074 units in the same month last year.

Maruti Suzuki to launch van to replace Versa

The country's largest car maker, Maruti Suzuki India (MSI) will launch a new van within this fiscal to replace its MPV Versa, whose production has been stopped.

"We will be launching a new van by the end of this fiscal. This vehicle will replace the Versa, whose production has already been stopped," Maruti Suzuki India Managing Executive Officer (Engineering) I V Rao told reporters on the sidelines of the Fourth Environmentally Friendly Vehicle Conference here.

He, however, did not give the price point of the soon-to-be launched vehicle.

MSI is also looking to produce one million vehicles by the end of this fiscal.

"Hopefully, we will have one million units in production by the end of this financial year by utilising our full capacity," Rao said.

He added the company is working on making all its models Bharat Stage-IV compliant as required under the government norms.

“We have not completed BS-IV compliance norms on all our models but we are working towards that direction," Rao said.

The company is also working on hybrid and electric vehicles for demo cars, but Rao said it has no plans for a full-fledged launch of vehicles with such alternative fuel technologies.

Maruti Suzuki Tops Again

India’s numero uno car company -"Maruti Suzuki" has topped the list for the tenth consecutive year for customer satisfaction in the country according to a recent survey conducted by global market research firm J D Power.

In the survey, "J D Power Asia Pacific 2009 India Customer Service Index Study", Maruti Suzuki scored 824, on a scale of 1,000 points, followed by Honda Siel Cars India at 791 and Mahindra & Mahindra at 757.

It was to be noted that only Maruti Suzuki and the Indian arm of Honda bettered the industry's average score of 785.

The other major car makers in the top ten list are Toyota with 754 points, Mahindra-Renault and Tata Motors at 750, Chevrolet with 748 points and Hyundai with 5 points less than Chevrolet. Ford is at the eighth place with 733 points followed by Fiat at 727 and Skoda is at the tenth position at 722.

The Senior Director of J D Power Asia Pacific mentioned that the leading brands differentiate themselves in the service quality and vehicle pickup factors. The study measured overall satisfaction by examining five factors -- service quality, vehicle pickup, service advisor, service facility and service initiation.

J D Power also said the number of customers who changed from organised dealership service facilities to non-authorised service centre for vehicle service requirements decreased to seven per cent in 2009, from 11 per cent in 2008.

Overall customer satisfaction is measured on a 1,000 point scale, with a higher score indicating higher satisfaction. The study, which is based on responses from more than 5,800 owners of nearly 50 different vehicle models, was fielded from May to August 2009 and includes customers who had purchased their vehicles between May 2007 and August 2008.

Maruti Cars India Launches New Maruti Zen Estilo

Maruti Suzuki India Limited, country's leading car maker, launched the Estilo with all-new overall looks and advanced technological features at a glittering ceremony here today.

The Estilo represents Maruti Suzuki matching pace with the changing taste and lifestyle of 'Vibrant India'. The bolder new Maruti Zen Estilo, designed to meet the aspirations of the Indian customer, is a heady-mix of sculpted features, bold designs, new exciting colours.

New Maruti Zen EstiloLeading the advanced technological features on the new Estilo are a new engine and a transmission system. Equipped with the popular 998cc K-series engine, the Estilo delivers a superior fuel efficiency of 18.2 kmpl (ARAI test results). This BSIV compliant engine makes the Estilo the second car in Maruti Suzuki stable that meets the BSIV norms much ahead of the effective date, April 2010.

The new Zen Estilo comes with new efficient transmission technology and advanced 'Detent pin' gear shift mechanism for smooth and precise gear shift feeling for the customers.

Speaking on the occasion, Mr. Shinzo Nakanishi, Managing Director and CEO, Maruti Suzuki India Limited said, "The new Estilo, with a new technology engine and a new transmission, is sure to delight the customer. We are confident that the new Estilo with its bolder new design and interiors will add to the competitive edge of Maruti Suzuki in compact car segment."

On the refreshed Estilo, that packages contemporary features and style with next generation technology, he added, "Product upgradation is an integral part of Maruti Suzuki's business strategy and future plans. This is a way to include feedback from the customers and offer better products that match their tastes."

The compact hatchback new Estilo is a part of the growing A2 compact segment where Maruti Suzuki is the established market leader with a market share of 58 per cent.

Superior Technology Engine:
The Maruti Suzuki new Zen Estilo houses the K-series 'K10B' engine under the hood. The 998cc three-cylinder engine delivers a power of 68 PS@ 6200rpm and a higher torque of 90Nm @ 3500rpm. The improved engine technology enables more power, low NVH (Noise, Vibration and Harshness) and the lighter weight of the engine helps to increase the fuel efficiency with lower emissions. The new Estilo comes with ARAI certified fuel efficiency of 18.2 kmpl.

Technical highlights of the K10B engine include DOHC (Double Overhead Cam shaft) with offset crank shaft, resulting in better volumetric efficiency, improved power and FE, high compression ratio, plastic intake manifolds for reducing weight and suction losses, Smart Distributor-less ignition (SDLi) system with dedicated plug top coils and advanced injector for superior atomization. The engine oil in the new technology K10B engine is required to be changed only after 10,000 km thus lowering the running cost.

Environment Friendly:
The new Estilo is the second model from the Maruti Suzuki stable which is BSIV compliant, thanks to the K series engine. The Estilo is also ELV compliant and 89% of the parts are environment friendly meeting ELV norms. Further, to take on the forthcoming norms of 10% Ethanol blending of petrol, the new Estilo is also E-10 compliant. Maruti Suzuki is bringing these environment-friendly features to its range of cars much ahead of the industry adopting these norms.

Superior Transmission:
A new transmission technology and a number of innovations make the new Zen Estilo a combination of power and pleasure.

The new Estilo comes with a new Cable-type transmission technology. The five-speed manual gear with synchromesh is now changed to Cable type as against Rod-type, mechanical transmission earlier. This new transmission reduces the gear shifting effort in the new Estilo, by reducing mechanical losses.

The new Maruti Suzuki Zen Estilo has been fitted with an advanced 'detent pin' gear shift and select mechanism. This mechanism eliminates the sliding friction (or line contact) between parts and provides rolling friction (or point contact). This technology, in turn, facilitates smoother transition of gears, and is a first among all Maruti Suzuki products.

These engineering changes, based on customer feedback, provide gear shift assistance for the driver (the gear smoothly goes into its position with minimal effort of the driver). The mechanism reduces the friction and hysteresis losses, thereby proving smooth and precise shifting of gears. It also removes the feeling of stickiness during gear shift process.

Safety, Security & Comfort:
The new Estilo is high on safety, security and comfort.

Improved occupant safety in the form of increase in the frontal impact absorbing area, as the distance between steering wheel and front bumper is increased.

The VXi variant comes equipped with front and rear fog lamps, rear wiper and washer. Safety features like Airbag (driver side) and ABS are provided as option in the VXi variant.

In terms of vehicle security the VXi variant comes with i-CATS integrated keys, five-door central locking and anti-theft alarm.

Rear parcel shelf adds to the passenger convenience and comfort in the VXi variant. Based on customer feedback, the suspension of the new Estilo has been fine tuned to provide improved ride and handling.

Compact and Convenient:
The new Estilo has got a minimum ground clearance of 165 mm and wheelbase of 2360 mm. The tight turning radius of 4.6 meters makes the Estilo a favored car in tight parking and driving conditions.

Vibrant design, styling and looks:
In its refreshed avatar, the new Estilo flaunts expressive, bold frontline looks owing to new swept-back headlamps, dynamic front and rear bumpers, sculpted fog lamp surrounds and a new hood design with crease lines. The rich chrome detailing in the grille and the stylish wheel covers add to the premium feel and the overall appeal of the vehicle. The side door mouldings and ORVM's have been given a new design to add to the bold looks.

The interiors of the new Maruti Zen Estilo have been done up in a posh-looking two-tone beige/chocolate brown complimentary combination, which adds to the refreshing feel inside the vehicle. The seat-covers, embossed with new organically designed geometric patterns heighten the posh looks of the car's interiors.

The dash-board is in a dual tone chocolate brown and beige combination with new attractive and bright silver accent prominently on the center console, instruments cluster, steering wheel, AC louvers and gear knob. The instrument panel has an all new design speedometer, digital fuel level indicator and multi-function display.

Vivacious new colours:
The new Zen Estilo is available in three exciting variants: LX, LXi and VXi in four brand new colours:

New Colours: Ecru Beige, Emerald Blue, Dusky Brown, Quantum Orange

Existing Colours: Silky Silver, Superior White, Bright Red, Midnight Black

Indian automobile sector ushers in new FY on positive note

The Indian automobile sector is ushering in the new financial year on a positive note. Sales across all major categories registered growth in April compared to the same month a year earlier.

Maruti Suzuki India reported nine per cent growth. The company is a subsidiary of Japan's Suzuki Motor and it sells one out of every two cars in India.

As for Hyundai Motor India, the country's second largest carmaker, sales were up 3.5 per cent.

Shinzo Nakanishi, managing director, CEO, Maruti Suzuki Ltd, said: "Since last December, the government has announced several stimulative measures, including excise duty cut, which has definitely helped us to survive in this auto industry."

A four per cent reduction in excise duty was one of the measures taken to help revive India's slowing economy and it has had the effect of boosting consumer spending by making things cheaper.

Growth in the auto sector for the month of April was also driven by new launches. Last year, Maruti Suzuki India launched A-Star, a car manufactured only in India. It helped exports surpass the company's previous record set in March 2004.

Another model, Dzire was launched in March. It helped Maruti to double its sales in the A3 segment.

People are also making a bee-line for two-wheelers. Honda Hero saw sales go up with the introduction of two new models.

Hiroshi Nakagawa, MD, Toyota Kirloskar Motor, said: "I strongly believe Indian economy is fundamentally very strong. So it's time to enjoy the growth."

However, analysts warn that it does not indicate a revival in consumer demand. The growth is relative to a low-sales base seen in April 2008. When compared to March this year, the sale of passenger cars and commercial vehicles in April have actually fallen by 20 per cent.

In addition, problems such as lack of funds and banks' unwillingness to provide loans continue to haunt the Indian automobile industry.

The sector has its wish-list ready for the new government that will assume office soon. Firstly, it wants the tax sops given to the industry to continue.

And with the Left parties no longer blocking economic reforms, the auto industry wants immediate approval of foreign investment in the country up to 100 per cent, with no minimum investment criteria.

Maruti to launch Ritz on May 15

Maruti Suzuki on Saturday said it will be launching its premium compact car Ritz on May 15 in Delhi in straight competition with its other premium compact car Swift.

"Ritz will directly compete with Swift. In the past, when we have launched cars in the same segment, it has helped the market to grow," Maruti Suzuki's managing executive officer, I V Rao, told reporters here.

"With the launch of Ritz, our customers would have two cars to choose from in the same category," he said.

Ritz and Swift would compete with Fabia, Getz, UVA and i20. Swift has been estimated to have a market share of 75% in the compact car segment.

In the next couple of years, seven new cars are being planned to be launched in the compact car segment by various car makers.

Swift, launched four years ago, has been a successful product of Maruti. At present, Maruti sells about 10,000 Swifts a month, Rao said.

The company has put up a new assembly line for Ritz at its factory in Gurgaon.

Last year, Maruti launched Swift in the European market. It makes Swift at a plant in Hungary.

Maruti To Launch Its First Luxury Family Car in India

India’s largest car manufacturer, Maruti Suzuki India Limited, plans to enter the D-segment of the Indian car market. It will be launching its new model, Kizashi, in India by 2009. It will be one of the first cars in India that will have four-wheel drive in its segment. The new model will compete with Honda Civic, Toyota Corolla Altis, Hyundai Sonata, Skoda Octavia, and Volkswagen Jetta.

Maruti is already the most successful car manufacturer in the A-segment and B-segment cars in India. Its engineers are now working towards a new target of bringing the model from the concept form to the production level. The car was first unveiled at the Frankfurt Motors Show 2007. It was also showcased at the Delhi Auto Expo 2008. The new model, Kizashi, is basically a crossover sports sedan powered with an advanced four-valve turbo-fired 2-litre petrol engine completely compliant with Euro V norms.

The company sources have not spoken officially about the car or its prices but the new model is expected to be priced at Rs. 10 lakh and above. The new model may roll out from the Manesar plant in Gurgaon by end-2009 or early 2010.

"Carnation Auto"- India's first independent multi brand auto sales & service venture

Former MD of Maruti Suzuki, Mr. Jagdish Khattar today announced his next venture - Carnation Auto. With a vision of developing India's largest independent multi-brand automobile sales and service network, he also announced the company's first round of funding of over Rs.100 crore from marquee names in the industry such as PremjiInvest and IFCI Ventures.

New car sales are projected to be 3 million and the car park 19 million by 2015. To meet the needs of these customers, an incremental investment of Rs.12,000 to Rs.15,000 crores is required in the network, which would be challenging in the existing franchise model. Upto 60-70% of car owners go outside of the manufactures network post warranty. Carnation would provide an alternative to these customers as well as families owning multiple brands, fleet owners and corporates- all under one roof.

"Our Auto Solution Hubs will provide everything a car owner would need to maximize his ownership experience." Elaborating on his vision for Carnation Auto, Mr. Khattar said, "The multi-brand concept will allow us to provide automobile manufacturers, especially new entrants and those with limited market share, small car park & capacity constraints, a more efficient route-to-market through faster nation wide retail presence, scale efficiencies and servicing support."

According to Mr. Khattar, initially the company will focus on providing service, mechanical repair and body shop solutions across its facilities. The service and parts markets is valued at just under Rs.15,000 crores. Carnation's pioneering venture of setting up a chain of auto solution hubs across the country is in an advance stage of its execution plan. Carnation plans to launch its service and sales network in 100 locations across 65 cities throughout India over the next 5 years. The first few Auto Solution Hubs would be operational early next year, which will include Delhi NCR, Hyderabad and Cochin. The total investment in the project is estimated to be Rs. 1,000 Crores.



In an effort to provide complete auto care solutions to its customers under one roof, Carnation is tying up with leading value added product and service providers for tyres, batteries, car detailing, accessorizing, CNG/LPG fitment and windshield replacement among other things. Carnation will subsequently also develop multi-brand facilities to retail new and pre-owned vehicles. The company is adopting world-class technology, equipment and IT systems to implement transparency and to enhance service quality in the entire automotive sales and service processes. Carnation is in advanced discussions with some leading automobile manufacturers for strategic partnerships with an objective of meeting the service needs of their customers.

PremjiInvest, a fund sponsored by Mr. Azim Premji, has committed to invest Rs. 80 crore to acquire a significant minority stake in the company. Mr. Prakash Parthasarathy, Chief Investment Officer, PremjiInvest, said, "Carnation is addressing several changing needs in the manufacturer- to-buyer relationship through a scalable business model. Mr. Khattar is a visionary who can rewrite the auto industry landscape again - this time in the services chain. We are excited to support the accomplished management team under his leadership and look forward to working together in creating a world class organization." Mr. Prakash Parthasarathy and Mr. Syed Mustafa of PremjiInvest would join the Board of Directors of Carnation Auto.

IFCI Ventures is also investing Rs.28 Crore. " Carnation's plan to set up the country's first multi-brand car sales and service network is a unique business proposition and will fill the gap in this underserved market," said Mr. A.K.Choudhary, Managing Director of IFCI Venture Funds, " Mr. Khattar brings with him tremendous experience, and under his leadership Carnation will strive to achieve the highest standards of customer satisfaction."

Carnation Auto is creating Joint Ventures in some key states with those who have the capability of running successful automobile dealerships in their areas. This would provide Carnation Auto with not only critical local insights but also help in an accelerated roll out of its operations. Mr. Khattar announced that the company has two Joint Venture partners already on board and is in discussions with various others.

To support its service and sales model, Carnation Auto has a wholly owned subsidiary in the infrastructure space, Carnation Realty, which will focus on investing in the acquisition of key properties for the parent company. Carnation Realty will also work on developing and executing new concepts for auto solution hubs, multi-brand showrooms and auto cities. Carnation Realty is in discussions with real estate firms to jointly develop these concepts.

Carnation is planning to set up an Automotive Training Institute, to train automotive technicians, sales and support personnel for the industry. According to the Automotive Mission Plan, the automobile industry will need close to 22 million trained (skilled and semi skilled) manpower by 2016. There is a need for an organized approach to train this manpower for this leading industry. Carnation plans to work closely with government, OEM's and other industry bodies, bringing together best practices with the latest technology to create an industry ready manpower pool for the automobile industry.

Talking about the brand Mr. Khattar said that the Company is named after one of the most popular flowers. Carnation Auto wants to imbibe its qualities of being warm, friendly and inviting. The identity too is built around the essence of the flower but turned around into a graphic rendition to give a vibrant and spirited feel to the brand. The logo contains different shades, which represent different promises to their customers. The representation of a "bouquet" represents a total and comprehensive set of services they plan on providing to their customers to give them a unique ownership experience.



"Carnation Auto is an initiative by Mr. Jagdish Khattar, which is in the process of setting up a state-of-the-art network of integrated multi-brand auto sales, services and related solutions across the country-an industry consolidator attempting to bring automobile dealerships under a standardized business model. It will provide automobile manufacturers, especially those with a limited market share, or those looking for a pan-India footprint but don't have the volumes to sustain stand alone dealerships & other capacity constraints, a more efficient route-to-market through faster nation wide retail presence, scale efficiencies and servicing support. Providing them dedicated outlets within the Carnation network resulting in higher revenues through cross-selling across business lines (new cars, servicing, used cars, accessories, financial and insurance products, auto leasing). "

Biodiesel Fuels Mandatory For All Cars In India

The new biofuel policy was announced this month which makes blending of 10 percent bio-fuel with petrol mandatory from the year 2012. It will be hiked to blending of 17 percent from the year 2017. All the major auto companies have taken a note of the same and have started to design new plans for their future launches that will run in alternative fuels.

Car companies in India are either planning to launch new variants or make changes to their existing models. Tata Motors, Hyundai and Maruti Suzuki are planning to launch variant of their existing models while General Motors and Nissan are planning to bring this technology from their existing markets. This technology is applicable only on E10 and E20 engines which has left several car manufacturers wondering about the possible solution for their models. Presently, only Honda and General Motors have E10 compliant cars and General Motors is planning to introduce models with E20 engines as well. Such a move may further increase the car model prices in India.

On the other hand, Maruti is also planning to launch E10 compatible models by the end of current calendar year. “Our present lot is E5 compatible but we are confident of offering E10 to the market soon, since this requires minor changes in the engine,” said the official.

Maruti to Bring CNG Variants of its Cars in India

Maruti Suzuki is planning to launch CNG variants of its cars in India. “Alternative fuel technology is the future. We will be looking at CNG variants of our vehicles,” said MM Singh, managing executive officer (production), Maruti Suzuki India Ltd, on the sidelines of the CII 7th Manufacturing Summit 2008.

Rising fuel costs have forced every car maker to launch alternative fuel option cars in the market. There has been a surge in demand for such model in markets like India which are extremely price sensitive. “With prices of oil and other commodities rising, the chances of them reverting to their lower prices are improbable. Small cars are the future. Here’s an opportunity for Suzuki Motor Corporation to leverage its expertise in manufacturing smaller cars economically,” said RC Bhargava, Chairman of Maruti Suzuki, addressing the shareholders at company’s 27th AGM.

Maruti is also ready to launch its next generation model – Maruti A Star in mid-November. It will launch in India subsequently followed by a launch in European market. The new A-Star is Euro V complaint and will be powered by the next gen K series engine. It will enable Suzuki to re-enter the European market with a new vigour.

Customers consider fewer models before buying cars

In what should ring the alarm bells for car-makers already facing a sales downturn, Indian customers are considering fewer models before making purchase decisions, global marketing information services firm JD Power said in a study.

"Twenty seven per cent of new vehicle buyers in India in 2008 considered at least one other model before purchasing their vehicle, compared with 38 per cent in 2007. This marks the first significant decline in cross-shopping rates since 2005," said JD Power Asia Pacific 2008 India Escaped Shopper StudySM.

The study compared shopping behaviour of two groups of customers -- buyers of recently launched models and buyers of models that have been on the market for more than two years.

For a fourth consecutive year, Maruti Suzuki India performed well in persuading shoppers to purchase the brand, with 38 per cent of all shoppers eventually purchasing one of its models.

Among other vehicle makes included in the study, buyers of Mahindra-Renault and Hyundai tend to shop around the most before purchasing their vehicles, while Skoda and Mahindra buyers were least likely to consider another model in their shopping process, the study added.

"The introduction of several new models into the market during the past few years as well as increased advertising by manufacturers is likely to create greater dissonance in the minds of shoppers and cause them to turn to friends or relatives for reliable advice," JD Power and Associates Senior Director Mohit Arora said.

As a result, consumers were being more decisive during initial stages of the purchase process and fewer car buyers were considering multiple models, he added.

Maruti A-Star to be called Pixo & new Alto globally

It’s a new car but will have three different names. For the first time in the Indian automobile history, the same car—made in India—will don three different badges in the global market. Maruti Suzuki, manufacturer of the car, will brand it A-Star in India.

The same car will be contract-manufactured by Maruti for Nissan Motors and called Pixo. And it will be the new Alto for Suzuki Motor Corporation in Europe.

The car will be manufactured exclusively by Maruti Suzuki’s plant at Manesar in Haryana and will be unveiled by both companies at the Paris Motor Show next month at their respective pavilions.

Both Nissan Pixo and Suzuki Alto will compete against Toyota Aygo in the international market while it will be pitted against Hyundai i10, Fiat Palio and Tata Motors Indica Vista in the premium small-car segment in India.

An MSI spokesperson refused to comment and said: “A-Star has nothing to do with Alto, which will continue to be the flagship model of Maruti Suzuki in India. It is a totally different segment.”

Hyundai aspires to become the No 1 car manufacturer in India

At the 10th anniversary celebration, Hyundai Motor India Ltd's (HMIL) MD & CEO, HS Lheem, said: "We hope to become the no 1 car major. While our current market share in the domestic market stands at 22 per cent, we hope to become the largest car manufacturer in the time to come." Lheem declined to comment on a time-frame towards achieving this goal.

Maruti Suzuki is the market leader by the number of cars it sells in the country annually, and holds a market share of a little less than 40 per cent. HMIL spelt its plans for the future which includes launching at least two new models every year, focussing more on the development, production, and exports of small cars like the "I 10" and soon to be launched "1 20". Parent Hyundai Motors based in Korea has designated India as the small car hub.

IN addition to increasing its production capacity in Chennai, Hyundai plans to raise its current research and development staff strength pegged at 200 to about 800 in 2009.

Carmakers offer gifts and gold to lure customers

It’s raining gold in the car market. Fighting sluggish market conditions, carmakers are offering diamonds sets, gold coins & chains, silver plates and MP3 music systems to lure customers into their showrooms before the festive season.

Traditionally, festive season has meant free insurance covers and auto accessories for buyers. However, this time around, carmakers such as Hyundai Motors and Ford India are offering precious metals to attract female customers and new buyers. Hyundai Motor India (HMI) is offering a free gold coin with its entire range (except i10 AT and Getz 1.5L CRDi) and an MP3 player with the Verna sedan range and the 1.1L & 1.3L Getz hatchback cars.

HMI managing director HS Lheem said: “We are offering these gifts as part of our successful decade-long operations in India. Besides, with these valuable offerings, we’re making Hyundai products very attractive for our customers.”

While Ford Motors India, which recently gave a facelift to Fiesta, is now offering Tanishq diamonds worth Rs 20,000 with every Fiesta. It has also started special offers including cash incentives for corporate and public sector buyers.

Car sales have nosedived in the past two months after a three year-long growth drive. While sales grew 3% in July, August saw a 1.71% dip year-on-year. To fight the slowdown, other companies are taking different routes to tap the market. Maruti Suzuki India has launched special incentives to attract over 25.4 lakh employees from the insurance, banking and retail sector with additional discounts of Rs 17,000 on SX4, Rs 5,000 on M800 & Alto, Wagon R, Estilo and Rs 4,500 on Swift (petrol version).

“It is a tough time and we are concentrating on non-core markets. Banks, financial institutions and insurance companies make up a big market, but still remain tapped. We are directly giving cash discounts to customers in place of tangibles,” a senior executive of Maruti said.

American auto major General Motor has also followed the similar path offering huge cash discounts. The highest cash rebate of Rs 58,000 comes on the Spark compact car, followed by Rs 46,000 on Tavera multi-utility vehicles. Other pre-Diwali offers include Rs 28,000 discount on Optra Magnum sedan along with a 4-5% interest waiver on all loan deals.

Honda Siel Cars India (HSCI) has plunged into the discount market for the first time and has waived 50% insurance premium on its popular City and Civic sedans, besides offering comprehensive warranty and service packages to the customers.