A new hub? Yes, Suzuki is intending to have a new hub.
Suzuki Motor Corp. plans to make its Indian unit a major production hub and pursue an aggressive strategy to retain its dominant market share in India, the unit's new managing director said on Thursday.
Maruti Suzuki India Ltd, in which Suzuki owns 54.2%, said that it would make 150,000 units of the new A-Star hatchback in its Manesar plant in northern India from October 2008 and export them to Europe first. The automaker, which is expanding its capacity to hit 1 million units by 2010, will launch other models that will upgrade consumers from its popular small cars such as the Alto and Zen Estillo, Shinzo Nakanishi said in an email.
"We have an aggressive plan for new model launches," said Nakanishi, who has previously worked in China, Indonesia, Hungary, Pakistan and the Middle East. "Suzuki is expanding its image from a maker of minicars and small cars to a company that offers the full range of models – with the launch of models like Swift and SX4," he said, referring to the hatchback and the recently launched sedan.
Besides the Splash and A-Star, there were more in the pipeline, Nakanishi added, pointing out the company had launched 5 new models in the last couple of years alone.
For the first time, Maruti sold more cars in India than its parent in Japan during the first half of the fiscal year. It is investing $1.75 billion in research and development and a similar amount in upgrading its plants and beefing up its vehicle line-up and dealer network in India to retain its market share of about 50%, Reuters reported.
"Maruti Suzuki is ready to play a much bigger role in Suzuki's global operations," he said. "Its manufacturing capability has reached a level where we want to make small cars exclusively in India for export to Europe."
Of the 3 million cars that the Japanese automaker intends to sell globally by fiscal 2010, Maruti Suzuki will account for a third.
There’s no denying it, competition is getting fiercer each day. With third-ranked Tata Motors Ltd, and global competitors such as Toyota Motor Corp., Honda Motor Co., Hyundai Motor Co., and Volkswagen AG all hoping to increase sales, the best company will shine.
The automaker will also face a greater threat at the lower end from a $2,500 car that Tata Motors is set to introduce next year, and a $3,000 car that Renault aims to build in partnership with Bajaj Auto Ltd.
"Maruti Suzuki has also set ambitious targets for productivity, quality, safety and cost, in line with the 1 million target," said Nakanishi. "Maruti Suzuki's R&D has shown tremendous potential through its contribution to the Swift and Concept A-Star (and) will strengthen in the next three to five years, both in terms of infrastructure and capability."