Khattar: Upbeat

New Delhi, Sept. 9: Maruti Udyog Limited will introduce five models over the next five years, chief executive Jagdish Khattar said at the company’s AGM.

The carmaker is also all set to roll out entry-level diesel cars by late next year.

He, however, did not divulge any details about the new models or their segments. Officials said such sensitive information could help rivals chalk out competing plans.

Maruti will also invest in a new car plant and an engine and transmission unit at Manesar in Haryana. This facility is expected to be operational in late 2006.

“The existing manufacturing facilities are operating at close to peak capacity. The new car plant will increase production and help meet the higher anticipated demand,” chairman S. Nakanishi said.

“We will also infuse fresh investments to upgrade the existing facilities,” he added.

“The diesel car market has been growing in India in recent years. Suzuki Motor Corporation (SMC) is known for its petrol engine technology and does not manufacture diesel engines. It has obtained the diesel engine technology largely to meet the requirements of Indian customers,” said Nakanishi.

The government’s decision to hike petrol prices on the back of spiralling global crude oil rates is also encouraging automobile makers to launch their range of diesel vehicles.

India has approximately 25 million two-wheeler buyers who want to upgrade to cars. Maruti is primarily targeting this segment. Moreover, this range will strengthen its position in the passenger car segment.

Maruti, which can currently manufacture 6 lakh cars a year, has reported a 19.7 per cent growth in sales at Rs 11,353.8 crore in 2004-05 while profit jumped 57.5 per cent to Rs 853.6 crore.

According to Nakanishi, Maruti is Suzuki’s largest overseas operations.

Suzuki is helping Maruti improve productivity and reduce cost. It is also collaborating in research and development activities.

“A core group of engineers in Maruti has undergone advanced training in SMC on a long-term basis. These engineers acquired capability in various facets of car design and development. The face-lift of Maruti's existing models in the past two years has been undertaken by these engineers independently,” he said.

Company officials said Suzuki plans to make India its research and development hub for Asia outside Japan.