Honda sends legal notice to Maruti over SX4 ad

Honda Siel Cars India (HSCI) has sent a legal notice to Maruti Suzuki over an SX4 ad published in a newspaper in Chandigarh in November 2008. According to Honda, the ad, which compares the Maruti SX4 with the Honda City, shows inaccurate data to make the City appear inferior to the SX4. The company claims that Maruti has misrepresented both the Honda City’s size and audio system details in the ad, which it says is an unfair trade practice. Maruti hasn’t yet responded to the notice.

Source: DriveInside.com

Maruti retains top rating in India automobile market

NEW DELHI: Despite increased competition in the domestic market, Maruti Suzuki has maintained its grip over the India automobile market by topping the annual India Performance Execution and Layout Study (APEAL) conducted by customer research body JD Power Asia-Pacific.

Four of Maruti Suzuki’s car models — small cars Wagon R and Swift besides sedans Swift Dzire and SX4 — topped their respective segments as over 6,000 customers who purchased a new vehicle between November 2007 and July 2008 voted for the company. Maruti’s newly launched Swift Dzire, which was pitted against Hyundai Accent, Mahindra Logan, Tata Indigo, scored 802 points on a 1,000-point scale. It was rated best on the 10 factors on which all cars were rated, covering aspects such vehicle exterior, fuel economy, driving dynamics, engine power and transmission smoothness, driving safety, music system and air-conditioning.

Maruti’s other cars—Swift and SX4—topped premium compact and mid-size segments for the second consecutive year in a row. Customers were particularly satisfied with the improved fuel economy of Swift Diesel.

“The newest generation of Maruti Suzuki products has clearly helped improve the brand’s overall image,” JD Power and Associates Asia-Pacific senior director Mohit Arora said.

All the top positions within different categories were bagged by Japanese carmakers. Honda Motor’s Civic and CR-V topped the premium sedan and SUV segment. While Toyota’s Innova was ranked highest in the multi-utility vehicle segment. South Korean carmaker Hyundai Motor India failed to bag any top slot, but it improved the overall appeal on the back of its new small car i10, which is among the top selling models in the country.

Source: http://economictimes.indiatimes.com/News/News_By_Industry/Auto/Automobiles/Maruti_retains_top_rating_in_India_automobile_market/articleshow/3859252.cms

Maruti Q2 net falls 37%, the lowest in 3 yrs

Posting its lowest profit since September 2005, Maruti Suzuki, the country's largest automobile company, posted a 37 per cent decline in its net profit for the quarter ended September 2008. The profit fell to Rs 296.1 crore for the second quarter this year as against Rs 466 crore in the year-ago period.

With the domestic demand turning sluggish, the company is counting on rural sales and export markets to sustain its profits. "We are seeing strong growth coming from the tier-III cities," said Shinzo Nakanishi, CEO and MD, Maruti Suzuki. Currently, markets in rural India contribute about 5 per cent to the company's overall sales.

"With interest in small cars growing the world over, we expect the A Star to have a significant demand in Europe. In styling, CO2 emissions and fuel-efficiency, the A Star will have a greater demand in these markets." Nakanishi added. The company also said the commencement of Nissan's production next year would help it sustain sales.

Maruti's sales for the second quarter of 2008-09 rose by 6 per cent to Rs 4,806 crore against Rs 4,529 crore last year. The operating margin dropped to 7 per cent in the quarter under review compared with 13.76 per cent in the same period last year.

Analysts said the net profit has been in line with expectations.

The drop in net profit comes on the back of a depreciation policy that took effect in the March quarter of 2008. "Depreciation takes effect on models that are four years old," said Ajay Seth, CFO, Maruti Suzuki. The slide in the net profit also comes on the company's forex losses. "Till the quarter ended September, we had a mark-to-market loss of Rs 50 crore on our external commercial borrowing (ECB).

We also had a loss of Rs 18 crore on foreign currency fluctuations," said Ajay Seth. The company, which imports about 50 per cent of its steel from South Korea and Japan, witnessed higher raw material costs shaving off about 1 per cent of its operating profit margin in the second quarter.

Discounting on select models has also increased sales and marketing expenses to about 7 per cent in this quarter.

While depressed market conditions are expected to continue for the third quarter of 2008-09, the company has projected better profits for the financial year 2009-2010.

"While we remain a net importer for 2008, in the next year, we would be able to improve margins as a result of exports to newer markets like Europe, which will help us become a net exporter," said Ajay Seth.

The company is also counting on the renewed domestic demand during the festival season and from the launch of models like the A Star.

Despite a slugging market environment, the company said its expenditure on R&D facilities and factory upgrade would continue. It has invested Rs 1,200 crore in its newly-opened KB-series engine plant in Gurgaon and plans to raise the headcount of its R&D team to about 1,000 by 2010. The company's Mundhra terminal in Gujarat, which will be used to export the A Star, will be commissioned in January 2009.

Source: http://www.business-standard.com/india

Maruti Q2 net falls 37%, the lowest in 3 yrs

Posting its lowest profit since September 2005, Maruti Suzuki, the country's largest automobile company, posted a 37 per cent decline in its net profit for the quarter ended September 2008. The profit fell to Rs 296.1 crore for the second quarter this year as against Rs 466 crore in the year-ago period.

With the domestic demand turning sluggish, the company is counting on rural sales and export markets to sustain its profits. "We are seeing strong growth coming from the tier-III cities," said Shinzo Nakanishi, CEO and MD, Maruti Suzuki. Currently, markets in rural India contribute about 5 per cent to the company's overall sales.

"With interest in small cars growing the world over, we expect the A Star to have a significant demand in Europe. In styling, CO2 emissions and fuel-efficiency, the A Star will have a greater demand in these markets." Nakanishi added. The company also said the commencement of Nissan's production next year would help it sustain sales.

Maruti's sales for the second quarter of 2008-09 rose by 6 per cent to Rs 4,806 crore against Rs 4,529 crore last year. The operating margin dropped to 7 per cent in the quarter under review compared with 13.76 per cent in the same period last year.

Analysts said the net profit has been in line with expectations.

The drop in net profit comes on the back of a depreciation policy that took effect in the March quarter of 2008. "Depreciation takes effect on models that are four years old," said Ajay Seth, CFO, Maruti Suzuki. The slide in the net profit also comes on the company's forex losses. "Till the quarter ended September, we had a mark-to-market loss of Rs 50 crore on our external commercial borrowing (ECB).

We also had a loss of Rs 18 crore on foreign currency fluctuations," said Ajay Seth. The company, which imports about 50 per cent of its steel from South Korea and Japan, witnessed higher raw material costs shaving off about 1 per cent of its operating profit margin in the second quarter.

Discounting on select models has also increased sales and marketing expenses to about 7 per cent in this quarter.

While depressed market conditions are expected to continue for the third quarter of 2008-09, the company has projected better profits for the financial year 2009-2010.

"While we remain a net importer for 2008, in the next year, we would be able to improve margins as a result of exports to newer markets like Europe, which will help us become a net exporter," said Ajay Seth.

The company is also counting on the renewed domestic demand during the festival season and from the launch of models like the A Star.

Despite a slugging market environment, the company said its expenditure on R&D facilities and factory upgrade would continue. It has invested Rs 1,200 crore in its newly-opened KB-series engine plant in Gurgaon and plans to raise the headcount of its R&D team to about 1,000 by 2010. The company's Mundhra terminal in Gujarat, which will be used to export the A Star, will be commissioned in January 2009.

Source: http://www.business-standard.com/india

Maruti to produce more popular cars for festive season

New Delhi: In a bid to cash-in on the ongoing festive season, India's largest car maker Maruti Suzuki India has increased production of its 'hotcake' models by about 6,000 units in September after continuously reducing in the previous four months.

A company official told PTI that in September Maruti Suzuki India (MSI) hiked production of the A2 models (Alto, Zen Estilo, WagonR and Swift) by about 6,000 units to meet festival season demands.

Interestingly, as per Society of Indian Automobile Manufacturers figures, the company had been constantly cutting down productions of these models from May to August this year.

In August, the company cut production by 5.22 per cent over the same period last year, making 39,241 units in the segment during the month against 41,402 units in the same month last year.

From May to July, MSI had cut production of A2 models by 3.56 per cent, 4.44 per cent and 1.57 per cent, respectively.

Market sources had pointed out that the production cut was mainly in Zen Estilo and WagonR, which are not as hot-selling as Alto and Swift.

When asked about this cut, the official said the company's productions were "as per the original plan".

"Whatever production cut were made in those months, have been already up in September and for the ongoing fiscal, our cumulative production is already more than what we did in the comparable period last fiscal," the official added.

MSI expects the demand for the A2 models to shot up during the ongoing festive season and it expected to rise it further during Diwali.

It had recorded a 1.45 per cent sales growth in July, whereas it declined by 10.07 per cent in August at 46,811 units from 52,055 units in the year-ago period.
Source: www.mid-day.com

Suzuki Motor Corporation unveiled the A Star

Mr. Toshihiro Suzuki, Board Member & Senior Managing Executive Officer, Suzuki Motor Corporation, Japan at the unveiling of the A Star at the Paris Motor Show. Suzuki Motors fifth world strategic model will be produced exclusively in India. Maruti Suzuki will launch A Star next month making India the first market globally where this car will be available.

Maruti Suzuki Sept Sales Up 5.27 Pct

Date & Place02/10/2008

Publication-Agencies(Similar story:The Financial Express,The Financial Express,Daily News & Analysis,The Indian

Country's largest car maker Maruti Suzuki on Wednesday reported 5.27 per cent jump in sales during September at 71,000 units, against 67,448 units in the same month last year.

The domestic sales stood at 64,682 units compared with 63,086 units in the same month a year ago, up 2.53 per cent, the company said in a statement.

Exports also grew 44.84 per cent at 6,318 units, against 4,362 units in the corresponding month last year.

Sale of its once bread-and-butter model M800 dipped 33.6 per cent at 3,467 units, against 5,221 units last year.

The A2 segment (comprising Alto, Zen Estilo, Swift and WagonR) sales stood at 45,621 units, against 46,216 units, registering a decline of 1.29 per cent.

The company, however, managed to post a good growth of 51.75 per cent in the A3 segment (consisting of SX4, Swift DZiRE and Esteem) at 7,413 units, against 4,885 units last year.