Maruti Suzuki India will launch RIII MPV, new Dzire, and Swift in 2011 to improve sales

Maruti Suzuki India is coping with loss of margins, and a market share loss of 3% resultant of production loss (16,000 units) at the Manesar plant.

According to KHABAR KHODRO, Simultaneously the company is dealing with rising inventory costs as dealer inventories stand at 30 days now as compared to 2-3 weeks previously, and competition from new launches by other car manufacturers in the Indian auto market.

Analyst estimates point to the fact that vehicle demand for July and August would not be exceptional but Maruti has a planned car launch in August, the new Swift, and increased overall capital expenditure can be in tandem to Maruti’s growth cause. With 13% more fuel efficiency, the Swift could go places.

Maruti is now looking at manufacturing 3 lakh diesel engines a year. Swift has driven in sales volumes of 10,000 units a month with about 2/3 units being a diesel variant. This diesel oriented approach can help Maruti regain partial market share by the 3rd quarter of 2011. The newly launched Toyota Liva petrol variant wouldn’t disrupt the new Swift’s progress.

Despite a sales recovery propelled by launches, namely the new Swift, RIII MPV, and new Dzire in 2011 Maruti Suzuki may not meet its 2011 fiscal sales target of 1.44 million. Analysts are lowering Maruti sales projection for the same period to 1.36 million units which equates to a mere 7.5% year-on-year growth