Suzuki increases stake in Maruti

Suzuki raised its stake in Maruti by 0.8% through secondary market purchases “very recently”, two persons familiar with the matter told ET. One of them, an investment banker, said Suzuki was set to increase its stake further. Indian rules allow companies to make creeping acquisitions of up to 5% a year and any increase beyond 55% will require Suzuki to make an open offer for another 20%.

This new report came after Suzuki raised its stake in Maruti through secondary market purchases by around 0.8%. The Japanese company Suzuki wanted to increase its stake to more numbers but the Indian laws stopped them from doing so, as there are many things to be followed. If a foreign company wants to increase its stake in any Indian company beyond 55% it needs to make a further offer of another 20%, and this made Suzuki step back from further raising the stake.

“It would be interesting to see what plans Suzuki and VW have for Maruti because their alliance has a significant focus on the Indian market,” noted an analyst at a Mumbai-based brokerage. Despite a flourish of global carmakers gnawing at its market share, India continues to be a lucrative market for Suzuki. Indeed, Maruti sold 96,650 cars in February, the 22% leap from a year ago its best monthly performance yet.

“There’s no reason why Suzuki would want (it) … unless it has a … larger game-plan lined up,” one former Maruti official said. “Suzuki gets nothing by upping its stake unless it has a longer term strategy of which this is a part,” added the analyst.

After Suzuki, FIIs and LIC are the biggest stakeholders in Maruti, owning 22.21% and 11.22%, respectively. Maruti’s current market value is around $10 billion, and if Suzuki were to fully delist the company, it would have to shell out nearly $5 billion at current prices. Maruti is looking to increase its capacity from 1 million units a year by up to 75% in the next five years.

“Depending on how the car market performs, we would like to reach 1.5–1.75 million units a year by 2015.” Maruti Suzuki MD Shinzo Nakanishi told ET in an earlier interview.

source ET

Huge demand for Eeco forces buyers to wait for 4 months

The Eeco seems to have delivered what the Versa failed to do for Maruti Suzuki, India’s leading car manufacturer. Buyers of Maruti Eeco face a 3-4 months waiting list for delivery, as the company grapples with demand and supply mismatch.

Maruti Suzuki Eeco is a five-door, C-segment vehicle, specifically designed for India by the auto-major with a particular focus to offer “space” and “comfort” for a large family. Launched at the recent Auto Expo 2010, the Eeco comes with both five-seater and a seven-seater option.

“The product has received overwhelming customer response for its attractive power, good air-conditioning, looks and high utility value,” an official spokesperson of the company said.

“All these features along with attractive prices have got us many more buyers than what we had planned. This has resulted in a shortfall in supply as compared to the huge demand and we are now trying to increase production so as to match the demand scenario,” he explained.

According to trade sources, there is a waiting list drawn at almost every dealership for Eeco. It generally varies between 3-4 months and in some regions it may even be 6-7 months.

“Dealers are unable to give a firm date of delivery and are only stating that no firm delivery schedule has come to them from the company,” a Chennai-based buyer, who booked the vehicle in the third week of January, told this correspondent on condition of anonymity.

“We are trying our best to increase production and we expect the average monthly sales initially will be around 3,000 per month,” the spokesperson said.

According to the company, most of the buyers of Eecho are “upgraders from the Omni”. Eeco is available in three variants and comes in six colours, offering a range of choice.

source mydigitalfc

Ford Figo price at  Rs 3.49 lakh (apx $8000 )

Ford Motor Co. made its entry into India’s lucrative small car market, launching the Figo at price points that offer strong competition to products already launched by global rivals General Motors Co., Volkswagen AG and Hyundai Motor Co. Ltd.

“If you are not in a segment where 70% of cars in India are purchased, you are not there (in the country) at all,” Michael Boneham, president of Ford Motors India said at a press conference to launch the U.S. automaker’s latest offering.

Figo’s gasoline version–the more popular one in the small car segment–will be priced at 349,900 rupees ($7690)-442,900 rupees, while the diesel variant will be sold in the 447,900 rupees-529,900 rupees range.

Mr. Boneham added that the Figo won’t be the lone offering in the small car segment. “We will launch a new product in every 12-18 months to give Indian customers what they want.”

He declined to give details on planned car launches.

Ford will be manufacturing the car, as well as its 1.2-liter gasoline and 1.4-liter diesel engines in India, at its plant in the southern city of Chennai.

The plant, which manufactures other Ford models for India too, has a total car-making capacity of 200,000 units a year and an annual engine manufacturing capacity 250,000 units.

Mr. Boneham said the company will source 85% of Figo’s auto-parts from Indian suppliers to keep costs low

Ford Figo prices ex showroom, all kerala locations : Petrol variants, Figo 1.2 P Lxi – 3,50,289,
Figo 1.2 P Exi – 3,82,324,
Figo 1.2 P Zxi – 4,00,344,
Figo 1.2 P Titanium – 4,43,392,

Diesel variants, Figo 1.4 D Lxi – 4,48,398,
Figo 1.4 D Exi – 4,73,425,
Figo 1.4 D Zxi – 4,97,452,
Figo 1.4 D Titanium – 5,30,489.

Nissan will launch Nissan Mirca/March in India in April 2010

The car, which was unveiled in 2010 Geneva Motor Show earlier this week, is expected to hit the Indian roads in Apr 2010.

Nissan Mirca, which is a joint venture with Renault, will be priced between Rs 400,000 and Rs 500,000.
more specification of car at http://autoten.com/2010/03/02/nissan-launched-much-await-nissan-marchmicra/

The A-segment car with five doors will be launched both in petrol and diesel variants.

Though there are talks that the Micra would be rolled out of the India facility, Nissan has said that it has not yet finalised on which vehicle would be manufacturedin India . Nissan has three models planned on the new platform A. News sources say that the development of a competitive A platform is one of several business breakthroughs announced as part of Nissan GT 2012, the company’s new five-year business plan.

Maruti Suzuki CKD to roll out Kizashi by end 2010

Suzuki-KizashiThe much-anticipated Suzuki Kizashi, which was unveiled at the Auto Expo 2010 in New Delhi, will also be launched in the country by the end of this year, as reported by an automobile magazine. The Kizashi is Suzuki Motor Corporation’s flagship model in the D-segment and is also its sixth World Strategic Model. Kizashi in Japanese means ‘a sign of great things to come’.

According to company sources, “Kizashi is very much on the company’s drawing board. But right now, Maruti is exploring various possibilities as to follow the CKD or CBU route or completely manufacture here. He added, “Chances are highly that it will be assembled here as there are certain critical inputs that cannot be made in India.”

When a dealer based in Delhi was contacted, he also confirmed that that Maruti has intimated them about Kizashi’s launch, tentatively in October this year. He said, “The price bracket of Kizashi will be Rs. 12-14 lakh and it will be the most feature-rich car amongst Maruti’s portfolio. When asked about the engine specifications, he said, “It’s highly likely that it will sport a 2.4 litre all-aluminium engine.”

“The Kizashi is going to be sold in India. I do not think the launch in India is that far in the future,” American Suzuki Motor Corp (Automotive Marketing and Public Relations) Vice-President Gene Brown told PTI on the sidelines of the Chicago Auto Show here. However, Brown did not give any further details about Kizashi in India since he is not in charge of the Indian market. It could also not be ascertained whether the car would be assembled or imported in India.
 

What Others Say:

“The Kizashi’s six-speed manual transmission, which we highly recommend, shifts lightly and smoothly and is enjoyable to operate.” —- automobilemag.com.

“On the whole, it’s pretty amazing how much Suzuki gets right with the Kizashi. This midsize sedan handles well, rides well and accelerates respectably. It’s also attractive in an unconventional way and has all the features you’d expect in a mainstream car.” — Edmunds InsideLine.com.

“The vehicle offers the common and necessary features, providing a new alternative for drivers looking to stretch every dollar.” — Detroit News.

“Whether it’s the Kizashi or its smaller sibling, the SX4, Suzuki is on an upswing with good-valued, well-designed, efficient cars that more buyers should consider instead of relying only on the most popular brands.”- The Weekly Driver

Facts & Figures: 2010 Suzuki Kizashi

Warranty — Bumper to bumper, 3 years/36,000 miles; Powertrain, 7 years/100,000 miles; Corrosion, 3 years/unlimited miles; Roadside assistance, 3 years/36,000 miles.

Safety — Driver and passenger, side, rear, side head and rear head airbags.

Gas mileage  (EPA estimates) 22 mpg (city), 29 mgg (hwy).

Price — MSRP: $18,999—$26,749; Invoice: $18,239—$25,679.
source: WheelsUnplugged and Weekly Driver

India top 15 models sales  in february 2010 (india car sales data)

Alto – 21067,
I10 – 14243,
Wagon R – 12781,
Swift – 11561,
Indica – 11448,
Santro – 8092,
Omni – 7764,
Dzire – 7321,
Indigo – 7258,
Bolero – 6915,
Beat – 2825,
Nano – 4000,
SX4 – 2933,
M800 – 3178,
Eeco – 2904

Source: carazoo

VW’s deal not to affect Nissan-Suzuki drive

Nissan will continue to source the Pixo, a small car from Maruti Suzuki, until the contract expires in 2012, thus laying to rest any speculation that the Japanese company was reconsidering the deal following Volkswagen’s purchase of a stake in Suzuki.
Nissan currently does not have a small car in its line-up for the European market, which is fast moving towards compact and fuel-efficient hatchbacks. It currently sources the A-Star model from Maruti Suzuki and sells this as the Nissan Pixo in Europe.

German car maker Volkswagen bought a stake of nearly 20 per cent in Suzuki for $2.5 billion in December last year, in an attempt to strengthen its plans for the compact car segment in burgeoning automotive markets such as India and China.

Experts stated that since the Pixo competed with Volkswagen’s Lupo (a compact car) in the European market, the Japanese company would have to reconsider the sourcing agreement with Suzuki.

Recently, Nissan’s Executive Vice-President Colin Dodge stated: “We do not know yet whether that strategy is still good, with Suzuki joining Volkswagen. A lot of people believe not, and we are thinking about it.”

No replacement for Pixo
But, according to Maruti Suzuki Chairman R C Bhargava, Nissan will have to continue the sourcing agreement as the Japanese company still does not have a replacement model for the Pixo, which is doing quite well in Europe.

“Nissan will be left without a small car if they terminate the agreement. We have had no formal dialogue with the company so far on the issue and our understanding is that the deal will continue for the entire duration, which extends till 2012,” stated Bhargava.

“Even if in future VW was to source a small car from us, it would not be similar to the A-Star,” he added.

Replying to a questionnaire, Nissan stated: “Nissan has confirmed that both companies will continue to comply with the OEM (original equipment manufacturer) agreement.”

A successful model
Nissan’s manufacturing agreement with Suzuki, signed in 2006, has given it a ready car that is an all-new compact car developed by Suzuki from scratch. The A-Star, in the news recently for being recalled by Maruti for rectifying a fuel leakage problem, has been very successful in the overseas market. This prompted Nissan to nearly double its sourcing target to 54,000 units this financial year, up from the 30,000 units planned earlier.

With VW planning an aggressive foray into the small car market over the next few years with expansive aid from Suzuki, the future prospects of Nissan’s deal with Suzuki look bleak, as VW may not want to share its small car details, which will entail huge investments with a third company.

Nissan will start selling its all-new compact car in the international and in the Indian market from this year. This four-door, compact hatchback will be made at its Chennai facility and will be launched by May. The car will also be exported to Europe.

source ET

India car sale data of  february 2010

The car market leader Maruti Suzuki India gets the best ever monthly record sale in the month of February.

Maruti Suzuki has sold a total of 96,650 vehicles last month including 11,885 units of exports.

The previous highest monthly record was in January 2010, as it sold 95,649 vehicles.

For the domestic market, it had sold a total of 79,190 vehicles in February 2009. But during this Feb, the company could rise the number to 84,765 units. This is the highest ever domestic sales in a month. The previous highest monthly domestic sale was in January 2010, where it sold 81,087 units.

Tata Motors sales grew 42% at 26,985 units including that of Indica hatchback at 11,502 units in the month. The company sold 4,105 units of Nano.

General Motors India also saw its February sales climb over twofold to 11,111, making it the highest monthly sales since its inception in the country.

Hyundai sales for February rose by 42.8% at 54,617 units (38,235). Domestic sales stood 31,001 units (21,215), highest since 1998 when Hyundai launched Santro in September that year, while the exports were up by 38.8% to 23,616 units.
M&M reported sales at 27,894 units (19,994) in February, an increase of 39.5%. The increase in numbers of three-wheelers was also contributed by the launch of GiO and will be strengthened by the retailing of Maxximo.

The domestic sales stood at 26,580 units (19,594), an increase of 35.7%. The sale of Logan further declined and settled at 537 units. Exports grew by 228.5% to 1,314 units (300). M&M gained around 8-10% more market share in utility vehicles with sales soaring to 18,280 units (14,720).

Honda Siel sold 6,275 units against 5,579 units, recording an increase of 12.5%. General Motors India registered a record growth of 126 % by selling 11,111 units (4,921).

Toyota Kirloskar Motors recorded a 101% growth with 5,993 units (2,976). Fiat India recorded a growth of 78% (including exports) at 2,335 units (1,309).

Admin

more Kizashi Ad  Campaign at http://siltanenpartners.com/kizashi/index.html

Admin

Suzuki  Kizashi Margeting Campaign

Suzuki’s ad push for its mid-sized car, Kizashi, positions the vehicle as a sports sedan, on the road or on snow. The effort, via El Segundo, Calif.-based Siltanen & Partners, has one set of creative elements pitching the all-wheel version as the perfect snow-state vehicle and another set touting the Kizashi as sports sedan for the rest of us.

Gene Brown, VP marketing at Fountain Valley, Calif.-based American Suzuki Automotive Operations, tells Marketing Daily that the effort, comprising TV, print, online, outdoor, radio and social media elements, is Suzuki’s most integrated to date. He says the company will succeed in grabbing share of voice for the vehicle through both the depth of integration and through the creative look and feel of the ads.

“The big reason we changed to Siltanen & Partners two years ago was, we knew this launch was coming, and we knew we would have to push this forward in the best possible way,” he says, adding that the company will also get on shopping lists with “a really integrated multi-media presence that is not just a one-trick-pony campaign. If you have gobs of money, you can have the launch pivot on big TV buys at the expense of other media, but that’s not our formula here,” he says.

The campaign also involves a new Facebook application, Suzuki’s first, called the Kizashi “Wicked Weather” game, where consumers become virtual Kizashi drivers behind the wheel of the car, avoiding vicious snow people and other obstacles.

Brown says TV spots will run on sports programming in 21 market “clusters,” with print focused on enthusiast publications and, potentially, sports books. Online and print elements center on endorsements from automotive reviewers who have given the car kudos. “Press reviews have been great, and we are using lots of accolades in creative in print, and online,” says Brown. “And we may do additional creative for dealers that highlight accolades.” A headline in one of the endorsement print ads says, “Words don’t do it justice, but they’re giving it their best shot.”

One TV spot shows the car in front of a glowing back drop of lava-like plasma. Voiceover says, “Remember when sleek, finely created performance sedans were just for rich guys with money to burn? Well, those days are officially over.” The ad then cuts to the car racing across a desert with a guy and girl in the front seats.

Brown says the target consumer wants a “zestier sedan than is typical for the category. In that context, our target is as likely as not to be cross-shopping a certified pre-owned BMW. It’s a sports sedan-minded buyer,” he says.

Rob Siltanen, CEO of Siltanen & Partners, says the decision to pit the car as an alternative to higher-end sports sedans came from early blind testing of the vehicle. “In the early stages, we tested Kizashi with consumers by covering the badge and putting it amongst competitors including Audi, and asked people what car they thought it was. A lot of people, a pretty large number actually, thought it was an Audi. We were eliciting that naturally from the car. So we wanted to make sure the imagery was in keeping with premium cars, letting the car be the star.”

Brown says the two campaign elements — the sports sedan message and the push for the AWD version in snow markets — are expressions of the same idea. “It’s about premium performance characteristics. And that story is clearly enhanced by all-wheel drive.” He says the take rate for the AWD version of Kizashi is likely to be around 20%, though obviously much higher in snow markets.