Indian Car Blog - Carazoo.com

Three months after Volkswagen bought 20 per cent stakes in Suzuki Motor Corporation, the deal seems to have ruffled the feathers of one certain Japanese car manufacturer. Yes, you read it right. It may come as a late reaction from the automaker; nevertheless, Nissan has made up its mind to review the Pixo sourcing deal with Suzuki.

Nissan currently does not have a small car offering for the European market, where the crowd seems to be shifting towards more compact and fuel-efficient cars. Nissan has a deal with Suzuki under which it sources the Maruti Suzuki A-Star and sells it as Nissan Pixo in Europe.

According to Maruti Suzuki Chairman R C Bhargava, Nissan does not have a choice other than to continue the sourcing agreement as the Japanese company still does not have a replacement model for the Pixo, which is doing quite well in Europe.

“Nissan will be left without a small car if they terminate the agreement. We have had no formal dialogue with the company so far on the issue and our understanding is that the deal will continue for the entire duration, which extends till 2012,” stated Bhargava.

But, with VW coming in picture, the scene has changed.

With the help of Suzuki, VW plans to enter the small car market over the next few years and may not prefer to share its small car details, which will require huge investments with a third company.

Besides, Nissan is coming up with its own compact car for the Indian and international market, for which the production will start very soon at its Chennai plant.

Both these factors make the Nissan-Suzuki deal look very unreasonable post its completion in 2012.

Long story short: Nissan will continue to source Suzuki Pixo till the contract ends in 2012. However if Suzuki decides to discontinue the contract after 2013, because of Volkswagen, Nissan will find somebody else.

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European car maker Volkswagen along with its new partner oriental Suzuki Motor Corporation have revealed that the two companies will be working jointly on hybrid and electric car projects in India.

The two companies are looking at establishing an R&D (Research & Development) centre base in India. It has been rumoured that they had zeroed in on Suzuki’s R&D centre.
Volkswagen and Suzuki are in the process of forming a long-term strategic partnership to tap the growing demand worldwide for more environment-friendly vehicles. Both the companies are focusing on the rapidly growing emerging markets of the world.

Volkswagen has green technology to offer to Suzuki while Suzuki has a fuel cell technology programme going on at its end. Sharing each other’s technology will certainly bring down the high development cost of hybrids. In fact, the major roadblock for hybrids is the reluctance of auto companies to share the technology know-how. But carazoo.com believes that VW-Suzuki partnership will overcome this as the two are investing in each other and are open about the strengths they share.

The latest fad in the car industry is either to go green or to turn blue. Most of the auto companies across the globe are looking at alternative fuel technologies in a bid to reduce carbon emissions and comply with stringent environmental regulations.

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German Car manufacturer Volkswagen is smooth sailing these days. A couple of weeks back, it acquired and added Porsche to portfolio and it is only last week that it has bought 20 per cent stakes of Suzuki Motor Corporation.

Now Volkswagen has finally rolled out its first ‘Made in India’ Polo car on Saturday from its production plant in Chakan, Pune. The Polo hatchback will enter the Indian car market in the month of March next year. Introducing the Polo is going to be Volkswagen’s biggest push to boost sales in India, which is Asia’s fourth-largest automotive market.

The Volkswagen's factory in Pune was opened earlier this year. It is a part of a 580 million euros ($ 846.8 Million) investment, which the company says is a “key element” in its India strategy.

This unit can produce up to 110,000 cars a year and will be used to manufacture the Skoda Fabia and the Polo. Besides, it will also be used to manufacture the sedan version of the Polo which will be launched in India in the second half of next year.

Volkswagen is planning to double the number of workers at its factory in India by the end of next year. The car giant sold about 16,000 cars in India from January through October.
Europe’s largest car maker also aims to capture as much as 10 percent of India’s car market in four to six years as it boosts sales in emerging-markets. So far, Volkswagen sells cars under five brands that include Porsche, Bentley, Lamborghini, Skoda and Audi.

Furthermore, Volkswagen is looking at the potential for jointly building cars with Suzuki Motor Corporation in the South Asian nations. Volkswagen and Suzuki plans to develop hybrids and electric vehicles under both car brands.

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Maruti Suzuki is on the roll right now at the moment. After Volkswagen hit the right button to buy 20 per cent of the stock of Suzuki Motor Corporation, this seems to be an added advantage for Maruti Suzuki to aim even higher for the small car market in India.

Come this 2010, and Maruti Suzuki has a slew of launches ready in its kitty. We in Carazoo.com have already covered on the Maruti Suzuki Omni replacement called Eco or O2, we have now the news on new Swift with 1.2 litre petrol engine also which is making inroads to India in the upcoming year. On the backdrop of this news, we are speculating that the new Wagon R also might be hitting the small car market in India.

Based on the information that we have sourced up, the new Wagon R will be based on the same platform of the current Wagon R, but the new Wagon R will be made to look like the next generation model. This car of course will be getting the new Bharat IV compliant K-series engine which guys in Maruti Suzuki are proud of. Unlike the current Wagon R which has a 1.1 litre engine, this new Wagon R might get a 998 cc petrol engine that could generate more power and output than the existing model, thanks to the new K-series engine.

The new K-series engine speculated to power the new Wagon R is same which does its duty in the A-Star. Like the existing Wagon R Duo which is being powered by petrol and LPG, the new Wagon R might get a factory fitted CNG kit which is in vogue at the moment. We expect that the new Wagon R will get an all-round cosmetic and styling change to be in par with the new generation. On the inside, the car might get a clutter free instrumentation panel which is easy to read with advanced technology put behind it. On the outside, the new Wagon R gets a more bold and macho look with new headlamps and tail lamps. With all these overall styling changes, Maruti Suzuki would now have a clear winner in their hands.

Maruti Suzuki also has left no stone unturned to gain its foot hold in the sedan segment. Just a month ago, Maruti Suzuki has revamped its fading SX4 to come up with an automatic transmission to counter its chief competitor Honda City. Now Maruti Suzuki also plans to bring in the diesel version of SX4 to capture the sedan market. It has already topped the charts with it popular model Swift and the sedan version of the same, Swift Dzire. Watch out for more in this space.

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The newly made Volkswagen-Suzuki alliance has already charted out its plans to develop a small car for the Indian market which would cost approximately around Rs2-2.5 lakh, which also could replace the Alto when the Maruti-Suzuki decides to retire its top-selling model.

Top officials in Maruti Suzuki have also confirmed this news that they were looking out for a car that would be replacing Alto for the price quoted above as that is the entry level for Indian customers today and the segment is very strategic for the company.

Volkswagen and Japan’s Suzuki Motor Corporation had, on Wednesday, announced a deal which will see the German carmaker picking up a 19.9% stake in Suzuki for $2.5 billion. The companies plan to develop small cars and electric vehicles under both brands. The new car that will be priced at $4000-5000 in the European market will be the cheapest car from the Volkswagen stable below the Up, which carries a price tag of around $8800.

Volkswagen also is enthusiastic in a car priced below the price segment of Up!, their cheapest car in the offering at the moment. VW is also looking forward for the fructification of the project with Suzuki.

Meanwhile VW will be launching its Polo hatchback in India by next year, which will be competing against popular hatchbacks in India like that of Maruti Suzuki Swift and Hyundai i20.

Although the contours of the partnership are still being worked out, both partners are interested in developing common platforms. Sharing platforms will enable VW to use Suzuki for contract manufacturing both in Japan and India. While VW is eying the options of producing its cars in the Maruti-Suzuki’s plants it is desperately seeking the small car expertise from small car whiz Maruti Suzuki to gain a foot hold in small car markets such as India and Europe and Suzuki is looking forward to learn the know-how of the diesel power plants technology from the German giant.

VW however was very clear to mention that they were not in the league to eye the Nano segment. But VW-Suzuki alliance has sent some shivers down the spine of many big players in India. Tata Motors for instance would have to re-draft their strategy as this alliance would mean some serious competition coming for diesel cars like that of Tata Indica Vista hatchbacks and Indigo sedans.

But there is a catch here in the whole process. However the global partnership will not result in the two companies sharing distribution and dealership networks in India. According to VW officials, the main focus of the synergy, particularly in India, will be on back-end areas like production and purchasing of parts.

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Suzuki Motor Corporation is preparing the next generation Swift. The new Suzuki Swift will be launched next year by the end of the third quarter.

The existing model of the Swift was launched back in 2005 and immediately went on to win the COTY (Car Of The Year) award. The Suzuki Swift accounts to 40 per cent of Suzuki sales in Europe and is the best selling model in UK. In India, the Maruti Suzuki Swiftis one of the top-selling models too.

The next generation Swift will draw styling cues from the outgoing model. The new face of Suzuki will feature on the Swift after it debuted on the India-bound Kizashi.

The Japanese car major is also likely to come out with an affordable hybrid car version of the Swift. The Swift plug-in hybrid was showcased at the 2009 Tokyo Motor Show last month.

The next generation of the Swift will also be introduced in India. In India, it is expected to come with the 1.2 L K-Series petrol engine. Suzuki could continue the Multi-jet engine and supplement it with more powerful engines like the 1.5-liter CRDI unit.

On the international front, the new Suzuki Swift will carry the 1.3-litre, 1.5-litre and 1.6-litre petrol engines. As Japanese customers are used to AWD models, Suzuki will offer the 1.6L VVT engine delivering 125 bhp with AWD in its local market.

Suzuki will introduce the new Swift during the Paris Motor Show in the second half of 2010.

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Volkswagen, with its 10 brands including Audi, Skoda, Seat and now Porsche, has said it wanted to become the world's No.1 automaker by 2018, a goal it would reach with relative ease if Suzuki became a subsidiary.

Unlike the Numero Uno automaker at the moment Toyota Motor Corp, the Wolfsburg-based company has only a 2 percent share of the U.S. market but is dominant in the expanding markets of China and Brazil. Volkswagen is said to want Suzuki's know-how to develop a minicar platform for the Up! concept car, or use Suzuki's existing platform outright.

Automakers are in the midst of realigning themselves in a wave of consolidation that many saw as inevitable given chronic overcapacity and a tough sales environment amid the worst industry downturn in generations.

The bankruptcy of Chrysler this year was twinned with a link-up with Italy's Fiat SpA, while Chinese automakers are looking to buy into brands on sale from GM and Ford Motor Co.

Still, many viewed Suzuki, with its enviable expertise in small cars and overwhelming lead in India through unit Maruti Suzuki India Ltd, as being reluctant to coming under any carmaker's control.

But the CEO Suzuki, who turns 80 next month, had struggled to find a successor after the death two years ago of his son-in-law whom he had been grooming for the top job.

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Volkswagen AG plans to take a stake of up to 20 percent in Suzuki Motor Corp, providing Suzuki with a much-needed development partner and giving VW access to better small car technology.

Though sources with direct knowledge of the negotiations have claimed that the Volkswagen’s stake could rise up easily so that to control more than one-third of the stakes in future. A 20 percent stake in Suzuki would be worth about 250 billion yen ($2.80 billion) at current prices if we go by the data provided to us by Reuters.

Spokesmen at Volkswagen and Suzuki Motor Corporation have still not commented on anything as of yet. Executives at Volkswagen, the world's third-largest automaker and Europe’s largest car maker, have publicly said over the past half year that Suzuki would be an interesting target given its expertise in small cars, a key segment to compete in emerging markets.

Suzuki, Japan's fourth-largest automaker, for its part, has said it would welcome any partnership that made sense after losing its ties to General Motors Co, which it had relied on for help with hybrid and other next-generation technology.

Suzuki, which dominates the Indian market through Maruti Suzuki, as well as the unique Japanese segment for 660cc mini vehicles, has a market capitalisation of $13.7 billion, against Volkswagen's $45.7 billion. Suzuki holds 20 percent of itself in treasury stock, bought back from GM between 2006 and 2008.

While Volkswagen's overtures to Suzuki have become common knowledge within the industry, the move comes as a surprise after Suzuki Chief Executive Osamu Suzuki had categorically denied any talks of a tie-up as recently as last month. On the other hand, the septuagenarian CEO, who is also chairman and president of the company founded by his wife's grandfather, has often and openly said his "small" company needed a partner to survive the fierce competition washing over the industry.

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India’s number one car manufacturer Maruti Suzuki has a big dream. To make its dream come true the company must work hard to raise its production by up to 75 per cent.

The company wants to have a hold of 50 per cent market share within the next five years. The board of Japan's Suzuki Motor Corporationwhich has a 54.2 per cent stake in Maruti will decide on the investment in next month.

Maruti Suzuki is planning to upgrade from 15 to 175 lakh units a year by 2015. The company remarked that this feat depends on the car market condition of India. Moreover, the company feels that by 2015, the domestic car industry will reach 3 million units while Maruti Suzuki will be capturing 50 per cent of the market share in India.

At present, the car giant has a production capacity of 10 lakh units a year. Besides, its sales in November 2009 jumped 67 percent from a year earlier. The capacity addition is expected to be done in phases. The company has 600 acres of land in Manesar and the company feels that they can accommodate two plants there for producing an additional 6 lakh cars as nearly two-thirds of the plot in Manesar is still free.

Maruti Suzuki is investing about 215 million dollars in expanding and upgrading its plant in Manesar by shifting some capacity from its old factory in Gurgaon, which will also be expanded at a cost of 1.5 billion rupees.

With its reliable, low fuel consumption, less carbon emitting cars that give a good performance, the company will certainly live by its dream. It has carved a niche in India that no car maker can topple!

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Of late, India has cemented its place as the hottest destination for auto makers across the world. Car manufacturers invested on the growing Indian car market and they are now reaping the harvest of their investments.

Japanese Suzuki Motor Corporation has emerged as the largest car maker of India with its Indian arm, Maruti Suzuki. Suzuki trebled its full-year global net income forecast on the back of strong Indian operations, despite sluggish sales overseas. While home market Japan as well as European countries contracted for Suzuki, India remained the only market to grow, with first half sales here moving up by 24 per cent at 4.7 lakh units against 3.8 lakh units in the corresponding period.

Ten year old Korean car company Hyundai follows the Japanese car behemoth in this regard. It has a capacity of producing around 6 lakh units, half of which service export markets. The company has earmarked India as one of the hubs for manufacture of models like i10, i20 and Santro and sells India-made cars to over 100 countries. While developed markets in Europe and US remain under pressure, operations in India have been gradually growing. The company's cumulative sales in January-October 2009 period have grown by 12 per cent year-on-year at 4.57 lakh units (4.07 lakh) with domestic sales up 11 per cent at 2.39 lakh units and exports up 13 per cent at 2.17 lakh units.

Honda too gets a sizeable portion of its revenues, sales and profits from its Indian subsidiary. It will bring its proposed small car for India by 2011. Beleaguered General Motors has its business flowing only in India in these hard times with its Chevrolet brand.

Volkswagen, Fiat and Ford are expanding in India. While Nissan and Renault are trying to establish a firmer grip in the market shares and are coming with a low-cost car.

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The number one car manufacturer of India is planning to go green.

Maruti Suzuki feels that it is the high time for the car company to introduce a green car in the Indian market. The company is considering the Indo-Thai trade pact viable for this project as it will enable the car company to buy the required car parts and accessories at a low cost.

The demand for a highly fuel-efficient car in the Indian market has prompted Maruti to drive in an eco-car. Suzuki Motor Corporation has developed a green car for the Thai market. The same will be launched in India in near future.

The Japanese car major Suzuki Motor Corporation will be launching a small car with a Euro IV engines of up to 1,300 cc under the Thai government’s special eco-car programme. This eco-car will have an excellent fuel efficiency of 20km/l and will emit less than 120 grams of CO2 emissions per km.

Suzuki Motor Corporation had earlier planned to set up a manufacturing unit with 1.38 Lakh of green car per year capacity in Thailand, with $280 million investment. But the company had to curb the plan because of the ongoing global slump. Under the Thai government’s plan, majority of these green cars were meant for exports and Suzuki Motor Corporation had earlier considered of selling 10-15% of its total production in Thailand and export the rest to ASEAN and Australia.

As the idea of exporting of fully-built cars from Thailand to India is ruled out, the Indian subsidiary of Suzuki Motor Corporation is considering on bringing knocked-down versions of the car to be assembled in India. The parent company has aided Maruti Suzuki launch half-a-dozen new cars in the past two years as it looks to expand its product portfolio and retain its over 50% market share in India.

The new eco car will certainly allure the Indian Ministry and will attract huge excise benefits and concessional tax sops.

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Suzuki Motor Corporation seems to very busy days. The reason behind this is that the Japanese car maker is developing a hybrid version of the newly-launched Kizashi.

The Suzuki Kizashi made its first global public debut on 30th July’09 in the U.S. The mid-size sedan is available with a 2.4-Liter 4-cylinder engine with a 6-speed manual transmission and front-wheel-drive as a standard feature. The sedan also has an option of automatic transmission and all-wheel-drive.

The Suzuki Kizashi can be best described as a sedan that can offer “Japanese quality with European flair.”

The more fuel efficient hybrid version of the Kizashi is added to the lineup in the future. This is an earnest move of the world’s ninth largest car maker to compete with the Koreans in the car market with an entry-level hybrid sedan.

Right now we have no news about the hybrid technology involved in the new version of the Kizashi, but we promise you to keep you in the loop with more news about this car.
The 2010 Suzuki Kizashi sedan will be available in the showrooms by Christmas in the U.S.

This handsome sedan will come on the Indian stage by 2010 and is believed to be priced at around Rs.10 Lakhs. The hybrid Kizashi sedan should be introduced in two years.

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India’s number one car maker Maruti Suzuki is in its 27th year. The company was established in 1982 as Maruti Udyog after Indian Government joined hands with Japanese car major Suzuki Motor Corporation to produce cars. Maruti Udyog was renamed to Maruti Suzuki India Limited on 17 September 2007.

The Maruti 800 was the flag ship and the first car from Maruti Udyog to be launched in India on 14th December, 1983. This small family car brought in an auto revolution in India. In all these years, the car company has been successful in driving out more than 80 Lakh cars from its Gurgaon and Manesar facilities.

The company began with producing 844 units in the first year in its facility plant at Gurgaon and now in its 27th year of producing cars and after 81,05,228 cars of its 14 models on roads, it is still going strong with the backing of the people of India.

The Maruti 800 alone accounts for over 27 Lakh units and more than 25 Lakh units of this model were sold in the Indian car market and the rest were exported.
Maruti Suzuki achieved the benchmark of one Lakh units in the month of September, 1986. In the next twenty years, it manufactured 40 Lakh units and was effective in making another 40 Lakh units within a period of six years.

Last month the Maruti Suzuki India Limited (MSIL) built 86,630 units, which is the highest ever in a month.

The Indian car giant has contributed about Rs 50,000 Crore to the national exchequer. The company is now undertaking an investment programme of Rs 9,000 Crore which includes adding a new facility at Manesar and increasing the capacity of the Gurgaon plant, besides ramping up Research and Development (R&D) activities and coming up with new variants.

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