Maruti plans foray into LCV market with 'Y9T', export push amid slump - Economic Times

Prices | Financials | Company Info | Reports MUMBAI: Undaunted by the dramatic slowdown in demand for cars, India's largest carmaker Maruti Suzuki is going ahead with its expansion plans. The carmaker has plans to foray into the light commercial vehicles market, while the Japanese parent wants it to develop the export markets in the Middle East, Africa and Southeast Asia, which requires capacity addition, chairman of Maruti Suzuki, RC Bhargava, told ET last week. The company's third manufacturing line at Manesar plant, with a capacity to roll out 2.5 lakh vehicles, will be ready by September this year. Maruti's Gujarat plant is expected to go on stream only by 2015 end or early 2016. "We will certainly need more capacity than 1.5 million units, because three years is a long time. To believe that the market will virtually remain at this level for three years is highly impossible," said Bhargava. ET had first reported about Maruti Suzuki's planned foray into light commercial vehicles in December of 2012. Maruti sold 1.13 million units in FY13, posting a volume growth of 3.3%. Many expect the market to be depressed in FY14, but bounce back in FY15. The company wants to be ready when demand picks up in India. "Suzuki has already said that we are responsible for exports to ASEAN, Africa, Middle East and some of the neighboring countries. Plus our LCV too has export potential, to Indonesia and Thailand, etc; so we would need more capacity," added Bhargava. The LCV, codenamed Y9T, is likely to be ready by FY16. Maruti is expected to set up a separate assembly line in Gujarat plant for LCVs. Apart from the LCV, Maruti has lined up a slew of new models including a small car YL7 and a series of big cars including an SUV. Abdul Majeed, leader of automotive practice at global consultancy and audit firm PricewaterhouseCoopers (PwC), says there is a huge potential for companies like Maruti Suzuki to diversify its products and markets. "Most of the emerging markets are very similar to India, and the product portfolio of Maruti Suzuki is very apt for these markets," he said. Copyright © 2013 Times Internet Limited. All rights reserved. via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGez7MOegW55j4WJA2VPIFJfJsoRg&url=http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/maruti-plans-foray-into-lcv-market-with-y9t-export-push-amid-slump/articleshow/20514286.cms

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