Maruti Suzuki looks at increasing production and reducing waiting period on vehicle deliveries in 2012
While Maruti Suzuki has for long sold a range of petrol based cars, their focus on increasing their diesel car product portfolio doesn’t go unnoticed. Shashank Srivastava, Chief General Manager of Marketing of Maruti had this to say. “We are struggling to reduce the waiting period for delivery of diesel based cars to customers, but it shows the faith of customers in our brand.” Aiming at reduction of waiting period, Maruti Suzuki plans a stockyard for the eastern region.
MSIL does have an operational stockyard in Bangalore. The company is also poised to increase target production to 3 lakh units this year. Maruti has an agreement with Fiat India Ltd., for the supply of diesel car engines. In August 2011, the company launched their mode year Swift that was launched in August, and the vehicle has a waiting period of about 7 months while having sold 1 lakh+ units till date. The company is also dealing with a waiting period for their Dzire, RITZ and SX4 diesel cars.
This week, the Maruti DZire entry-level sedan was launched for a price range of Rs 4.87 lakh and Rs 7.19 lakh (ex-showroom). The Indian auto market has been experiencing an increased demand for diesel vehicles at 28%, and demand for petrol cars has decreased by about 19%.
Maruti is the leading manufacturer of petrol car in India with roughly 65,000 cars leaving the factory each month as against 33,000 diesel cars a month. MSIL had allotted about 15-17% of their total car production to diesel cars but that number is set at 23-24% this year keeping in mind demand for diesel powertrains.
Maruti Suzuki battled continual labour disputes in 2011 at their Manesar plant, which dented production, vehicle deliveries, and profits for the company in 2011. As such, for May to January 2011, growth rate stood at just 5.2%. Obviously, the company will work on increasing those numbers this year. In a YOY comparison, Maruti Suzuki sold 115,433 vehicles in January 2012 for the 109,743 cars sold in the Indian auto market in January 2011.