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| GET, SET, GOExtra power: Replace engines in old models and fit new ones with K-series engine Watch out for: The A-Star first to have the K-series engine followed by the Splash Sales target: Sell one million cars per annum by 2010 Sales strategy: Set up more outlets in Tier II and Tier III to push sales Export outlook: Two lakh units by 2010 Thrust area: One lakh units of the A-Star |
New Delhi, Aug. 24: Maruti Suzuki India will introduce a new range of engines — the K-series — for all its future models. The country’s largest car maker has also taken up an aggressive strategy to push sales in smaller towns. All this is part of Maruti’s efforts to achieve a sales target of one million cars per annum by 2010.
“The company is increasing its reach to smaller cities and towns. This is in line with our strategy to find newer market pockets,” said a company official. “We have discovered that prosperity is now finding its way into a large number of hitherto small towns because of industrial, farming and mining activities,” the official said.
In the next few months, Maruti will expand its sales outlets to New Bongaigaon in Assam, Begusarai in Bihar, Ambikapur in Chhattisgarh, Yavatmal in Maharashtra and Bharatpur in Rajasthan.
Revamp mode
Maruti, which plans to export two lakh units by 2010, plans to use the fuel-efficient K-series engines in all its cars in three to five years.
“The K-series engine will be progressively fitted into our existing and new models. It will be compliant with Euro V norms,” a Maruti spokesperson told The Telegraph.
The first K-series engine is a one-litre petrol variant. It is being produced at Manesar in Haryana, initially for the A-Star which is scheduled to be launched in November.
According to the company, the A-Star engine will have the lowest carbon emission in India.
Sources said the existing models of the Zen Estilo, Swift and WagonR would also be fitted with the K-series engines in the next few years.
Another soon-to-be launched hatchback — the Splash — will also come fitted with the K-series engine.
The current F and G series Euro III engines are likely to be phased out by 2010.
The premium sedan SX4, launched last year, is equipped with the M-series engine, which complies with Euro IV emission standards.
Maruti’s new engine will compete with Hyundai i10’s 1.1-litre, iRDE engine and the Chevrolet Spark’s 1.0 litre, 4-cylinder SOHC (single overhead camshaft) engine.
The manufacture of K-series engines is part of the Rs 9,000-crore investment announced by Suzuki Motor Corporation chairman Osamu Suzuki.
Export target
Maruti plans to export one lakh units of the A-Star.
“When we exported about 53,000 cars in 2007-08, that was the highest ever in our history. But we now want to take it to 200,000 cars annually by 2010-11,” Shinzo Nakanishi, managing director and CEO of Maruti Suzuki India, told shareholders in the company’s annual report.
He said the company’s effort would be led by the A-Star.
“It will be exported mainly to Europe but also to other markets in the world,” Nakanishi said.
Maruti has reported a net profit of Rs 465.9 crore in the first quarter of 2008-09 against Rs 499.6 crore during the same period of the last fiscal. Net sales stood at Rs 4,731 crore, a growth rate of 20.9 per cent over the same period of the previous year.
Domestic sales grew 12.1 per cent, led by the Swift, Swift Dzire and WagonR, at 180,093 units during the quarter.
The company exported 12,491 units in the first quarter of 2008-09 against 9,065 units in the first quarter of the previous year, a growth rate of 37.8 per cent.
