INDIA-MARUTI SUZUKI Maruti Suzuki launches crossover vehicle in late assault on India's SUV market

Record ID: 145023

  • Title: INDIA-MARUTI SUZUKI Maruti Suzuki launches crossover vehicle in late assault on India's SUV market
  • Date: 5th August 2015
  • Summary: VARIOUS OF 'S-CROSS' ON DISPLAY
  • Embargoed: 20th August 2015 13:00
  • Keywords:
  • Location: India
  • Country: India
  • Topics: General
  • Reuters ID: LVADXKQXNHJOCEAI0F3S1RB2L4P8
  • Aspect Ratio: 16:9
  • Story Text: India's leading car manufacturer Maruti Suzuki launched a crossover vehicle on Wednesday (August 5) in a bid to boost ambitious sales growth plans.
    The company has struggled to keep up with competitors including Ford Motor Co and Renault SA in the fast-growing SUV market.
    Maruti Suzuki's managing director and CEO in India, Kenichi Ayukawa, told reporters at an unveiling of the 'S-Cross' in New Delhi that the launch was a step to garner a bigger share in a market segment where it did not yet have any offerings.
    "Another very important initiative is launching new products and entering new segments. We recognize, leadership is not only about numbers and market shares. It is about the challenging spirit which is the DNA of Maruti Suzuki," Kenichi Ayukawa said.
    The car manufacturer has set a target to almost double its annual sales to 2 million vehicles by 2020, when analysts expect India will become the world's third-largest automobile market with projected sales of more than 5 million vehicles every year.
    Consultant IHS Automotive predicted SUV sales in India will reach nearly a million vehicles annually by 2020, which is almost double the 550,000 it expects to be sold in 2015.
    "As far as we prepare that good product for the customer it means that the customer is expecting some change, something new, something different. If we provide such kind of product, maybe we can get some new customers and then we can expand our business further," said Ayukawa.
    Maruti Suzuki launched its premium 'Ciaz' sedan last October and has on average been selling about 5,000 a month, while monthly 'S-Cross' sales are targeted at 4,000 - both well below the 20,000 average for its flagship 'Alto' small cars.
    The company's dominance in India and the strength of its parent, Japan's Suzuki Motor Co, in small cars for emerging markets were key factors behind an investment in Suzuki by U.S. activist investment fund Third Point LLC, which was revealed in a letter to investors on Friday (July 31) and could be worth almost $1 billion.
    The base diesel model of the 'S-Cross' will be priced at 834,000 rupees ($13,070) and will be sold through a new network of showrooms for premium models.
    It will compete with Ford's 'EcoSport', Renault's 'Duster' and the recently launched 'Creta' compact SUV from Hyundai Motor Co, India's No. 2 car seller.
    ($1 = 63.8100 Indian rupees)
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