Maruti to become Suzuki's major hub
Main shareholder of Maruti with a 54.2% stake, Suzuki is determined to make its Indian unit a major production hub to keep its market share in India, but also to export to other countries.
First, the company will unveil next month its low cost model, known as the A-Star model which will built at 150,000 units per year from October 2008. The small hatchback will be exported to Europe first. Secondly it will launch several new models in the coming years. But the most interesting recent move has been the nomination of a new managing director. Indeed, Suzuki replaced the Indian managing director Jagdish Khattar by a Japanese man Shinzo Nakanishi which will keep a close eye on the new subsidiary.
Maruti will likely become one of the strongest Suzuki's asset in the future as Maruti sold more cars in India than its parent in Japan during the first half of the fiscal year. With a gloomy Japanese market, Suzuki national sales won't likely be better in the future so Maruti will become vital and is expected to represent a third of the 3 million cars built by Suzuki by 2010.