UPDATE 1Suzuki expects depreciation to hit India margins
By Rina Chandran
NEW DELHI, Jan 9 (Reuters) - Suzuki Motor Corp (7269.T: Quote, Profile, Research)
expects the profit margin at its Indian unit to take a hit from
depreciation and capex, but aims to maintain its dominant
market share, the head of its Indian operations said on
Wednesday.
Maruti Suzuki India Ltd (MRTI.BO: Quote, Profile, Research) will not cut the price of
its mini 800 model or launch a smaller car, Managing Director
Shinzo Nakanishi told reporters hours after unveiling the
firm’s new world strategic model, an A-segment hatchback.
“Suzuki has a reputation of being a small car maker and we
want to keep that. But we also want to have a full range to
meet market requirements,” he said at an annual auto show.
Maruti Suzuki, in which Japan’s Suzuki Motors owns 54.2
percent, has about 50 percent of India’s car market and is
spending about $1.8 billion on capacity expansion and a similar
amount on research and development.
For additional stories, pictures and video from the Auto
Show go to in.reuters.com/news/globalcoverage/special
Shares in the company ended 1.5 percent down at 925.70
rupees in a Mumbai market that closed flat.
They trade at 14.2 times forecast earnings, compared to
16.9 times for top vehicle maker Tata Motors (TAMO.BO: Quote, Profile, Research).
Maruti Suzuki aims to make 150,000 units of the new world
car, the A-Star, at its plant near New Delhi from late 2008,
first for export to Europe. Continued…
