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|12th October 2007, 23:52||#18|
Join Date: Jul 2007
Location: Back in Bangalore
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Great news for Maruti and Indian Auto industry. Lets hope we improve our infrastructure as well to match Japan
|19th November 2007, 05:20||#19|
Join Date: Jan 2006
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Suzuki's Indian Sales Exceed Japan's for the First Time
Could India be the engine that drives Suzuki into the future and prevents the company from being the sort of buyout target for Toyota that Subaru and Isuzu have become?
Oct. 10-- Suzuki Motor Corp., Japan's second- largest minicar maker, sold more vehicles in India than its home market for the first time, twenty-five years after it entered the country.
Maruti Suzuki India Ltd., 54 percent owned by Suzuki, sold 336,758 cars, vans and sport-utility vehicles in the domestic market between April and September, the Society of Indian Automobile Manufacturers said today. That exceeded the preliminary 315,000 vehicles Suzuki sold in Japan in the same period, according to spokesman Takuma Mizuyoshi.
Suzuki's success in India, where it controls half of the car market, has prompted automakers such as Hyundai Motor Co. to build factories in the country in the past decade. Japan's aging population has led to a two-year slump in the domestic market and increased reliance on overseas sales for Suzuki, Toyota Motor Corp. and other Japanese carmakers.
"This is significant and it's a pointer to other companies on what potential India holds for the future,'' said K.K. Mital, who manages 1.8 billion rupees ($46 million) of stocks at Escorts Asset Management in New Delhi. "Car ownership is still very low in India and companies will look to this market as sales shrink in their own home markets.''
Only seven in 1,000 people own a car in India, compared with 10 per 1,000 in China, 500 in Western Europe and 450 in the U.S. Record economic expansion has boosted car sales in eight of the past 10 years in India, prompting Hyundai, Renault SA and General Motors Corp. to expand Indian facilities.
This year, India's 1.1 billion people will snap up vans, small trucks and cars more quickly than anyone except the Chinese, according to research firm Global Insight Inc. From 2006 through 2011, India will be the fastest-growing auto manufacturer among the world's top 20 car-making countries, New York-based accounting firm PricewaterhouseCoopers LLP says.
Shares of Maruti have gained almost nine-fold since a 2003 initial public offering in India. The stock climbed to a record 1,135.85 rupees on the Bombay Stock Exchange today before giving up the gains. Suzuki shares have tripled in Japan in the past six years and rose 1.4 percent to 3,600 yen in Tokyo today.
Japanese automakers are increasingly expanding overseas to counter a drop in domestic sales. Japanese vehicle sales have fallen for 18 straight months through September.
Osamu Suzuki, the Japanese carmaker's chairman, got interested in India when one of his aides read a newspaper article about the government's search for a car-making partner. Suzuki met with a team from India in a Tokyo hotel to discuss a possible partnership.
|19th November 2007, 16:12||#20|
Join Date: Oct 2007
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With having the greatest potential buyers as the blooming economy is churning out more and more rich people, Maruti in India would continue to outsell Suzuki in Japan.
Maruti is just an incredible brand in India. The kind of consumer reach, brand preference, it has is just amazing and many companies can only dream of achieving.
The closest competitors such as Hyundai and Tata are not doing anything to even retain thier market share.
Maruti is invincible in India and I am sure it would maintian that 50 % market share in future as well.
|3rd November 2009, 09:07||#21|
Join Date: Oct 2009
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India driving Suzukiís growth
Itís the India booster to Suzukiís global sales and profits. As car companies struggle across the globe due to pullbacks of recession, Japanese car major Suzuki is reaping the benefits of its dominant position in India, its biggest market.
Sales numbers for the first half of 2009-10 show that the company, despite witnessing slump in almost every other market including home turf Japan, still hopes to remain in the pink of health with India offsetting all the global declines.
An upbeat Suzuki on Monday trebled its full-year global net income forecast to 15 billion Yen ($167 million), citing a weaker-than-expected Yen as well as cost cuts.
So how is India driving up the fortunes of the company? A look at the numbers released on the companyís website shows that while sales have been falling across markets for Suzuki, India remains the only bright spot, single handedly saving it from a near rout (see chart).
The recession resulted in a severe contraction in demand and sales volumes in Europe where numbers fell 50%. North America, though small in volumes for the mini car major, was also down 60%.
In the home market Japan also sales fell 13%. India remained the only major market to grow and saw first half sales moving up by as much as 24% at 4.7 lakh units against 3.8 lakh units in the corresponding period of the last year. This also pushed Asian regions sales growth by 3%.
The figures clearly demonstrate how India is powering the companyís fortunes globally. Sales and profits in India have been rising rapidly for Suzuki, that holds the majority 54% stake in Maruti Suzuki, the leader in the Indian market with a market share of over 50%. Maruti, despite effects a global slowdown, has managed to more or less remain unaffected.
The company has registered a healthy jump of 51% in the profit for the first half of this fiscal at Rs 1153.5 crore against Rs 762 crore in the same period last year.
This means a larger share of profits and income to Suzukiís global kitty from India.
Moreover, the success of new models in India has also contributed to Suzukiís growth. Models like Swift, Dzire, Ritz and A-Star ó that carry a high royalty outgo from Maruti to parent Suzuki ó have been the main drivers of growth in India. With new models selling more, royalty from Maruti to Suzuki is around 3.5% of net sales of the company, which again is a substantial amount.
Favourable currency is yet another reason the contribution from India to Suzukiís coffers could rise.
Suzuki has already revised its full-year forecast for the yen to 93 against the dollar from 90. A weaker yen increases earnings from sales in overseas markets including India.
Source: Times Business, Bangalore
Date: 03 Nov 2009
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