Maruti Grows Bigger than Mother Suzuki

[Dolphin]

Even though the quaterly profits of MSIL is down the annual net profit has increased.

Here is the news:
Maruti Suzuki has touched a new milestone. Nearly 25 years after beginning operations through a JV with government, the company's sales in India have surpassed parent Suzuki's sales in Japan for one full year, signalling the coming of age of the Indian automobile industry.

Close on the heels of the recent success of Indian companies like Tata Motors and Mahindra in the global automobile arena, Maruti — that dominates Indian car bazaar with over 50% share — finally did something which was anticipated for long.

While Maruti Suzuki India, that now is a Suzuki company after government's exit, sold 7.11 lakh units in financial 2007-08, parent Suzuki managed to sell 6.73 lakh units in Japan. While the Indian subsidiary's sales grew 11.9%, that of parent fell 2.5% in Japan.

And the future looks more exciting. Led by new model launches, the Indian car market is expected to maintain double digit growth and emerge as one of the fastest-growing car markets in the world, at a time when developed markets like Japan are facing bumpy ride.

Despite witnessing steep competition from companies like Hyundai, Honda, GM and Toyota, Maruti is confident to mainatin its lead. The company, that rolls out a new car every 22 seconds, is tightening its grip with new models like Swift and DZire, with Alto driving with a largest selling tag.

For Maruti Suzuki, the success could not have come at a more opportune time. Under new MD S Nakanishi, the company is pumping in fresh investments to the tune of Rs 9,000 crore and early this year announced a new compact car 'A-Star' to be produced only in India, but sold globally.

Car penetration in India is still very low compared to other markets and high economic growth and rising salaries are expected to keep the momentum going strong. Around 7 in 1,000 people are estimated to own a car in India, compared with 10 per 1,000 in China, 500 in Western Europe and 450 in the US. As on December-end last year, Maruti had a sales network of 562 outlets in 372 towns and cities, and provided service support at 2538 workshops in over 1200 towns and cities.

Since inception, the company has produced and sold over 6.75 million vehicles, including 500,000 units through exports. Currently, it offers as many as 11 models ranging from its 'people's car' Maruti 800 to the hatchback Swift, DZire, SX4 sedan and Sports Utility vehicle Grand Vitara.

Souce:Maruti grows bigger than mother Suzuki-India Business-Business-The Times of India

[aaggoswami]

Yes great, and everyone knew that this will happen, but it wasnt expected soon.
Great News. And now we hope that we immediately get new wagon R based on Landy platform.

[hydrashok]

This is good news.

I hope this will persuade Maruti to improve fit and finish of their cars' interiors and use sheet-metal that is a bit thicker. Sorry for the rant.

[amitpunjani]

and yes, what about the waiting period

[abhibh]

7.11 lac units a year with 6 mothns waiting period. Think of what will this figure be if there was no waiting

[GSMINC]

And yet the maruti stock price keeps falling day after day.

[Dolphin]

I believe Maruti is a mix of advantages and disadvantages, inclined more towards advantages though.

As mentioned by hydrashok we can just hope that the interiors, body sheet metal thickness and the waiting period (amitpunjani) improve. As we all know, Maruti products are priced very competently and they are reliable. There is a huge demand for them.

Looking at the sales figures, it is very obvious that Maruti is the leader in India. People don’t mind waiting for even 6 months to get a Maruti. (Not all models have a 6 months waiting period.)

Not all but I have seen many people, who like cars of other manufactures, the cars which satisfy all their requirements, but they never buy them. They compromise on what their heart and soul wants and start thinking practically and say, “Why the risk? Buy a Maruti and feel safe”, even if this means they are not actually getting what they want. This is the stature Maruti commands in India.

And at the end of the year when the growth, profit and sales figures are out, the people have made their choice, the result is obvious.

The million dollar question is, “How and who can beat Maruti in India?” Calls for a new thread doesn’t it.

[Car-Agey]

Originally Posted by Dolphin

I believe Maruti is a mix of advantages and disadvantages, inclined more towards advantages though.

Not all but I have seen many people, who like cars of other manufactures, the cars which satisfy all their requirements, but they never buy them. They compromise on what their heart and soul wants and start thinking practically and say, “Why the risk? Buy a Maruti and feel safe”, even if this means they are not actually getting what they want. This is the stature Maruti commands in India.

Very true. I wanted to buy an Indigo CS, but my father wants a Maruti and hence I am going in for a WagonR.

The million dollar question is, “How and who can beat Maruti in India?” Calls for a new thread doesn’t it.

May be TATAs with the NANO.

[extreme_torque]

Originally Posted by Car-Agey

Very true. I wanted to buy an Indigo CS, but my father wants a Maruti and hence I am going in for a WagonR.

For the love of god please covince you father for the Indigo CS. Its a much much better car especially the diesel.

[FERRO]

I still can't understand why government made exist from JV.
it was afterall for making affordable cars for common public but now it seems Suzuki wants to charge premium for those tin box with diesel engine technology borrowed from other manufacturer.

[snaronikar]

How much every they produce does not matter. They need to improve on few things as discussed by others mainly the interior parts and the waiting period.

[Mpower]

India has given a lot to Suzuki, you would think they would do something special for the people of India.

...like Ratan Tata did with the Nano.