Monday, January 25, 2010

Maruti Suzuki step up to invest 1,700cr

India's leading car manufacture company, Maruti Suzuki will invest of Rs. 1,700 crore($ 369) million to increase its production capacity. The company has approved investment plan on Saturday in Mumbai. Japan's Suzuki Motors Crop has a 54.2 percent share in Maruti. Seeing the overwhelming response for small cars in India forced some of the Japanese car makers, Toyota Motor Crop and Honda, to foray in this segment hence the huge investment by Maruti. The company aims to produce an additional 250,000 cars annually. Currently, Maruti Suzuki has a 1 million units production capacity. The growth of productivity will happen at Manesar in Northern India. Maruti is already expending $215 million in upgrading and increasing production by shifting some capacity from its aging facility near by Gurgaon. The company said in a statement that the additional capacity will take its first step for commercial production by April 2010.

Maruti Eeco

At the Delhi Auto Expo, which was held in first week of January, Maruti's managing director said, the company would double the capacity at its Manesar plant by the 600,000 units to the cope with competition. Maruti's new avatar a five seator 'Maruti Eeco' (MPV) has been launched at the Delhi Auto Expo. The old model of Maruti's Versa was replaced from its new MPV Eeco car model. Its priced at Rs. 259,000 (Ex-Showroom price in New Delhi). According to company, Maruti's net profit by the quarterly is Rs. 6.88 billion($4149.2 million).

Maruti Eeco Hybrid

The company profit is more than tripling from a early year and beating forecasts. The company said, the higher sales were in part due to the lower base effect to the same period a year and the boost sales of demand from the government's incentives packages and easier availability of credit. Favourable commodity prices helped keep costs, which low during the earlier part of the quarter. While they have started to fix up in the last few weeks, it said. The compact car segment in India, Asia's third largest economy and one of the fastest auto makers in the world, has composed close to 75 percent of the total car market. Tata's new vehicle 'Tata Aria', which was displayed at Delhi Auto Expo, is to be believed that it will be launched end of 2010. On the other hand, Ford has made a plan to introduce its new awaited 'Ford Figo' very soon in India.

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