Maruti Suzuki, the biggest carmaker in India, is gearing up to enter newer segments next year. Kenichi Ayukawa, managing director and CEO, in a recent interaction said it is going to be equally challenging for the company to establish itself in the uncharted territory.
"I think next year is going to a year of new segments, said Ayukawa, while talking to dna. Known for its compact and entry-level cars, Maruti Suzuki will launch a new sports utility vehicle (SUV) and a light commercial vehicle (LCV) next year.
"Next year we are launching our new SUV. That's a new area for us and it's a challenge. Of course, our core is entry-level cars and mini cars, which is an important area for us; we have to develop those of kind of products continuously. But at the same we need to add segments because Indian customers are upgrading and we have to satisfy our customers and hence we developed Ciaz," said Ayukawa.
Enhancing its offerings in the SUV segment, the company will launch its compact SUV in early 2016. The company believes that the move will help in maintaining its market share. Despite the slowdown in the economy and increased competition, Maruti Suzuki has gained share.
"Every year we will have to challenge ourselves. When I joined as MD, our share was 39-40%, now its 45%, we are constantly trying to increase our presence," said Ayukawa.
The company will also enter the LCV segment next year. However, it expects volumes to come gradually. About the launch, he said, "LCV also is a new challenge for us, we have no experience, but it takes time to develop our network. In the short term, a big number will be difficult. We will start gradually on small number for LCV next year."
The company is also looking to increase its share of exports from its India operations, as aims to make the country as export hub. Currently, Maruti Suzuki exports 10% of its overall production from India and plans to take the number to 15% in the next five years.
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