Maruti Suzuki small car not in the pipeline

8 February, 2008

Maruti Suzuki has denied that it plans to do a Tata Motors and come out with a cheap small car. There had been reports in the media that Maruti Suzuki India was lining up a small car with a 660cc engine positioned below the Maruti 800 and priced at Rs 1.5 lakh gained currency. Maruti Suzuki has come out with a statement denying all such rumors outright.

A release issued by Maruti Suzuki India to the Bombay Stock Exchange said the company has no plans to launch a car like the one mentioned. The Project "Under A" mentioned in the report refers perhaps to the A Under, which in fact is the earlier code name for the A-Star model, it said.

It went on to say that the first people's car had been rolled out of its assembly line some 24 years ago under the Maruti 800 brand name. India's middle class, who are Maruti owners has, since then, seen a improvement in the way they live and with higher incomes. At the moment as car customers settle for nothing less than contemporary styling, international quality, and latest features that enhance their safety and convenience while expecting performance and fuel efficiency, the car maker said.

Maruti believes that its entry level car customers nurture a high degree of aspiration, both in new cars as well as pre-owned. They want more from their cars in terms of features, performance, safety, and versatility. It added that Maruti Suzuki has been able to notice and understand this transformation largely due to its close relationship with customers throughout the period of their car ownership. Models such as Maruti Swift, SX4, and Grand Vitara have arrived and they have been providing Indian car buyers international quality and style . According to Maruti Suzuki India, the success of these cars in the market has endorsed the company's beliefs and it now wants to pursue this strategy with greater vigor in future.

Reiterating that it has no plans of developing a car below the Maruti 800, Maruti Suzuki said that it would launch world strategic models like Splash and A-Star as part of its attempts to offer international quality and design to Indian customers at an attractive price.