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Maruti Suzuki to launch new cars: Will start work at Gujarat plant once demand rises

Company sales declined in most segments including small and compact cars and in mid size sedan segments as well. The main reason behind is the overall slowdown, which has affected all automakers in the country, but the other big reason which is looming in the hindsight, is the launch of new cars with competitive pricing by rivals. For eg, Honda Amaze, Hyundai Grand i10, and Ford EcoSport.

All three of these have been launched in the past 6-7 months, and have had a powerful impact on sales of their respective companies. In Oct 2013, the cumulative sales of these 3 stood over 25k units. In order to combat with the new car launches, Maruti Suzuki have revealed that they will launch new cars in India, reports Economic Times.

The month of October 2013 saw total sales of 96,062 units, a marginal increase of just 60 units as compared to sales in October 2012 while sales in the mini car segment which includes M800, Alto, A Star and WagonR saw a 6.8% decrease in demand. The auto segment is currently in the doldrums and there is little hope of revival any time in the near future as sluggish market conditions continue to prevail due to which most auto companies have reported lower car sales as compared to last year.

On the proposed plant in Gujarat, which is currently lying unused, construction will be initiated only once demand increases. Maruti Suzuki will be assessing demand in the passenger vehicle segment in domestic markets over the coming 2 to 3 years before taking any future decision on this proposed Mehsana plant, which is spread over 700 acres. Maruti Suzuki had planned investment to the tune of INR 4000 crores in the first phase at Gujarat plant. This would result in production capacity of 2.50 lakh units per annum. As of now, there seems to be a long wait before construction actually begins at their new plant.

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