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Old 12th May 2006, 15:31   #1
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Default Maruti loses lakhs on each Baleno

"...Maruti loses lakhs on each Baleno, but still retains it as it doesn’t want customers to migrate to Honda, for instance, once they want bigger cars.."

an extract from an article in 'Business Standard' http://www.business-standard.com/com...bLeft=0&chkFlg=
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Old 12th May 2006, 16:01   #2
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Probably all it means Maruti loses money from profit margin and not loses money by selling a car. It doesn't make sense otherwise, since NHC is any way selling in few multiples of Baleno.
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Old 12th May 2006, 16:23   #3
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Quote:
Originally Posted by RX135
Probably all it means Maruti loses money from profit margin and not loses money by selling a car. It doesn't make sense otherwise, since NHC is any way selling in few multiples of Baleno.
But looking at the launch price and the current price.......it wont be surprising if maruti is trying sell baleno at breakeven.
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Old 12th May 2006, 16:29   #4
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Without concrete facts and numbers, I do not believe that the Baleno is a loss-making proposition for Maruti.

With 6 years of production, localisation of spare parts and depreciation of machinery its foolhardy to think they lose lakhs on every Baleno.

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Old 12th May 2006, 17:14   #5
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Quote:
"...Maruti loses lakhs on each Baleno, but still retains it as it doesn’t want customers to migrate to Honda, for instance, once they want bigger cars.."
Look at the bright side guys, the Baleno has something in common with the mighty Veyron.

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Old 12th May 2006, 20:10   #6
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Well being India's No.1 Company

1. Its a good gesture.

2. I still dont think they are losing money considering the low cost of the Dyes, High localization content and economies of scale. At best Its making a few hundred bucks on each car.
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