The Hindu Business Line : Maruti launches A-Star with eye on exports

Three variants: The Chairman of Maruti Suzuki India Ltd, Mr R.C. Bhargava (right), and Director of Sales and Marketing, Mr S. Oishi, at the launch of the Maruti Suzuki ‘A-Star ‘ in the Capital on Wednesday.

Our Bureau

New Delhi, Nov. 19

India’s largest car maker Maruti Suzuki today launched its fifth World Strategic Model A-Star in India today. With this new model the company is eying an export market of around 1.5 lakh to two lakh cars annually by fiscal 2009-10.

Last year the company exported around 53,000 cars to 40 countries.

In order to handle the increased export traffic new infrastructure is being put in place.

“The car terminal at Mundra Port, which we are setting up in joint venture with the Adani Group, will be ready by mid-December. New double-decker railway wagons have been developed for transporting cars from the factory,” the Chairman of the company, Mr R.C. Bhargava said.

The company has launched the new model in three variants with an ex-showroom price in the Capital in the range of Rs 3,46,775 to Rs 4,11,775.

With the global economy in recession the company sees that there is a possibility of people’s choice shifting towards small cars.

“There could be a shift for people going in for small cars and that would increase the export share of models like A-star and Swift,” Mr Bhargava said.

The new model is launched on a new platform with a light weight 998 cc K10B petrol engine with a mileage of 19.59 km per litre and would roll out from the company’s Manesar plant.

PRODUCTION RE-ADJUSTMENT

Poor market demand has forced the company to produce below target in order to avoid inventory piling up.

The Gurgaon facility that has a capacity of producing seven lakh vehicles annually is currently not making full capacity utilisation.

“There has been a re-adjustment of production in our Gurgaon plant. For instance, instead of three shifts, now we are having only two-and-a-half shift productions,” the company’s Executive Officer (Marketing and Sales), Mr Mayank Pareek, said after the launch.

The current market growth is around four per cent against a projected growth of around 10 per cent, he said.