Tatas' Rs 1 lakh car no threat, asserts Khattar

Assuring its shareholders that the Rs 1-lakh car from the Tatas would not be a competition, the country's largest car maker Maruti Udyog today said it would stick to its own strategy than react to competitors' plans.

Responding to queries from its shareholders at the annual general meeting held here about MUL's plans in the wake of expected competition from the Tatas' Rs 1-lakh car, Managing Director Jagdish Khattar said the company would continue to focus on its own plans.

"Every company has its own strategy and if we keep on reacting to them, our own strategy will fail," he said, adding the small car from Tata was more of a threat to two-wheelers.

"We kept on saying in the past, and now even the foreign experts and analysts are saying the same that the Rs 1-lakh car will be more of a competition to motorcycle makers. Two-wheeler customers who cannot afford our products would be attracted to the small car," Khattar said.

Assuring the shareholders that there was no need to worry, Khattar in a lighter vein added: "If you are a two-wheeler shareholder as well, please examine."

The AGM today approved the change of the company's name to Maruti Suzuki India Ltd, which will come into effect after it is approved by the Registrar of Companies.

Addressing the meeting, MUL Chairman Shinzo Nakanishi said the company was geared up to meet the rapidly increasing demand from customers.

The company has also been evolving and has consciously decided to expand its brand image from being the leader in mini-cars and compact SUVs to becoming a complete car maker.

"In line with this, Suzuki decided to design its new products with a distinctly stylish and European flavour. The Swift reflected the new design philosophy, focusing on bold and aggressive designs and European styling," Nakanishi said.

Since then, Suzuki had designed and launched three new globally strategic models, including the SX4 and Grand Vitara that reflect the new approach, he added.

Maruti and Suzuki's strategy had been to widen the offerings for the Indian customers. A large number of model launches in the past year with multiple fuel options was a reflection of this move, he said.

Nakanishi said the company had investment plans of Rs 9,000 crore up to 2010 in new facilities, including the new car plant and diesel facility in Manesar, new series engines for its cars and upgrade of the Gurgaon plant.

"These will help Maruti further fortify its position in the market," he added.