Maruti DZire: Maruti’s future plans

Hi all.

I am a big fan of Maruti and since Siwft DZire was launched. It is the most desirable option in the entry level sedan segment. But question is what will be the performance of Maruti swift dzire in domestic auto market? Please read this news article i came across, to know.

Maruti Suzuki may be on a capex overdrive, but analysts don’t seem to agree on the quantum of growth this passenger car market leader would post this fiscal.

Maruti managing director S Nakanishi did admit to severe margin pressure. But then, the margin squeeze is a reality across the automobile industry. And given the fiercely competitive environment, Maruti is unlikely to lead a price increase in a declining market. Anticipating a surge in exports and perhaps also to meet the competition coming in the form of Tata Nano’s production numbers, the company has decided to complete the one million unit capex by October this year. In fact, by 2010, Maruti’s total production capacity would jump to 1.2 million units, of which at least 2 lakh would be fed to the export markets. While acknowledging that the company has become aggressive on capex, a Maruti spokesperson had said earlier that this was being done to meet enhanced export demand and would be funded from the Rs 9,000 crore capex investments already announced.

Moreover, i feel that the demand of Maruti Swift DZire is on fire. The diesel variant is a hot cake. Everybody wants to own it first. The average waiting time for Swift Dzire is one month. So Maruti is increasing the production capacity to cater to this overwhelming demand.

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~ by gizmoghost on April 23, 2008.