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Rediff.com  » Business » Maruti plans 5 new models

Maruti plans 5 new models

By BS Corporate Bureau in New Delhi
September 10, 2005 11:50 IST
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Maruti Udyog Ltd, the country's largest carmaker, will launch five new models over the next five years.

Its diesel engine plant, being set up at Manesar in Haryana will begin to roll out diesel-powered cars by end-2006.

The company made these disclosures at its annual general meeting in New Delhi, but did not divulge details of the new products.

Automobile analysts peg Maruti's capital expenditure on the launch of a new car at Rs 750-800 crore (Rs 7.5 to Rs 8 billion). "However, if a new product is launched on an existing platform, the capital expenditure can come down to Rs 200-250 crore (Rs 2 to Rs 2.5 billion) a model," said Anang Dev Jena, head of Synovate's Motoresearch.

In fact, Maruti has been working to reduce the number of platforms. Addressing shareholders, Maruti Chairman Shinzo Nakanishi said, "Once the (diesel) engine plant comes up, your company will be able to play a major role in helping the diesel segment of the market grow and thus strengthen its leadership in passenger cars."

Although Maruti enjoys leadership in the passenger car market in the country with about 50 per cent share, its presence in the diesel segment is negligible.

A significant portion of the 200,000 diesel car-market in the country is with Tata Motors. Maruti's upcoming diesel engine plant is aimed at helping the company get a sizeable share of this market.

Maruti is also setting up a new car plant in Manesar, Haryana. "The existing manufacturing facilities are operating at close to peak capacities. The new car plant will augment production and help in meeting the higher anticipated demand," Nakanishi said.

The total investment is estimated at Rs 3,400 crore (Rs 34 billion). A further investment of Rs 400 crore (Rs 4 billion) towards modernisation of the existing facilities was also in the pipeline, company executives added.

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BS Corporate Bureau in New Delhi
Source: source
 

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