Suzuki Motor has pledged large investment in its biggest overseas market, India, with plans to invest over $770 million to build new production facilities and develop a new range of midsized saloons to compete against rivals like Honda and Toyota who have made profitable strides into the segment with the City and Corolla.
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Suzuki has decided on mid-sized cars as its new target segment for growth to buffer its dominant position in small cars.
Its first new car is likely to be a Swift three-box saloon spin-off from its recently redesigned hatchback line aimed at the entry level midsize segment.
The fresh investment to develop a saloon range is an attempt to enhance Suzuki’s image among Indian car buyers from just being a volume car maker. Though its image is good here, it does work to its disadvantage with midsize cars.
A large proportion of the investment, about $US470 million will be channeled into Suzuki’s new joint venture company Maruti Suzuki India Ltd, and the remaining $300 million will be used by Maruti Udyog.
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By GlobalData“Our intention is to retain our share of the passenger car market in India and build the capability to produce one million units a year by 2010. These investments are aimed at achieving this target,” said Suzuki Motor senior MD and Maruti chairman, Shinzo Nakanishi.
Deepesh Rathore
