Mid-sized sedan Ciaz, LCV, compact SUV in 12 months: Maruti Suzuki1 min read . Updated: 31 Jul 2014, 07:54 PM IST
The company will also be making its foray into compact SUV segment, says MSI vice-president Rahul Bharti
New Delhi: Maruti Suzuki India is gearing up for a launch programme for a slew of products, including mid sized sedan Ciaz and an LCV along with compact SUV, in the next 12 months to strengthen its hold in the domestic market.
“We are poised for entering into a strong product launch cycle, including Ciaz and an LCV (light commercial vehicle) and refreshes of existing models in the next 12 months from now," Maruti Suzuki India vice-president Rahul Bharti told analysts in a conference call.
The company will also be making its foray into compact SUV segment, he said without sharing the timeline for the launch of the products.
Its compact SUV based on XA Alpha, displayed in 2012 Auto Expo is long awaited. The product is likely to be launched early next year.
These upcoming products are in line with its strategy to to enhance market share in India. MSI increased its market share in passenger vehicle segment in the first quarter of the current fiscal to 42 %.
In the April-June period, the company sold 2,41,812 units of passenger cars and utility vehicles out of an industry total of 5,73,038 units, garnering 42.19% market share, according to SIAM data.
MSI has earmarked a capex of Rs4,000 crore for this ongoing fiscal in order to support the new launches, increasing marketing infrastructure and building of stockyards, warehouses and other normal expenditure, company chief financial officer Ajay Seth said.
On the distribution network for the upcoming LCV, Bharti said the company would keep in mind the need for its car customers to be offered the ideal showroom experience, hinting that the LCV could have a separate outlets.
Despite a late entrant in the LCV segment, MSI is confident of doing well, Bharti said stating its product would have distinct advantages over competition.
With MSI joining hands with parent Suzuki Motor Corporation, Seth said on products such as the compact SUV the rate of royalty payment would be less.
“As we mature and lot more joint product development happen our royalty rate will come down," he said, adding in the first quarter the royalty payment was around 6% of net sales.