Maruti Suzuki India News and Updates

[SVK]

http://www.firstpost.com/business/suzuki-is-now-an-indian-company-its-100-percent-gujarat-subsidiary-is-a-win-win-for-all-1364547.htmlMaruti Suzuki breakup?

Suzuki Motor Corporation's decision to run its Gujarat plant as a 100 percent owned subsidiary rather than as a unit of its majority-owned (56 percent) listed entity, Maruti Suzuki Ltd, has jolted the markets. The share prices headed straight south yesterday (28 January) when it was announced that Suzuki would make the cars in Gujarat under a new company, Suzuki Motors Gujarat Pvt Ltd. The idea is to sell the cars at cost price plus royalty to the listed company to market. The listed company will thus make only marketing margins. Several questions loom. Is this good news or bad news for Maruti shareholders? Why did Suzuki do this when it could have instead chosen to take Maruti Suzuki private by making it a 100 percent subsidiary after making an open offer? Is this good strategy even for Suzuki, since it will now come under the taxman's scrutiny on transfer pricing? Is Suzuki going the multinational way, where almost all of them have now set up 100 percent subsidiaries (P&G, Pfizer, et al) in addition to majority-owned listed entities to launch new products? Are the analysts who have raised corporate governance issues about this gambit right?

 

[dextermorgan]

Actually Maruti is now going to act as sales arm of the Maruti Suzuki Pvt Ltd where as Suzuki will act as manufacturing arm. This is surprising since they could have bought out the gujarat plant under Maruti Suzuki Ltd but instead they just gave up whole 100% to Suzuki.

 

[Sushubh]

His logic?

In an interview with FE, Bhargava said recommendations like the recent one from the Global NCAP (New Car Assessment Programme), a private autonomous body, would only expose consumers to more risks. He said that if carmakers incorporate such features in even entry-level cars, obviously the price would go up, which would lead consumers to opt for two-wheelers, which would be more unsafe.

More safety features in cars will mean less road safety, says Maruti chief | The Financial Express

 

[udayan]

I think he may be correct to some extent, Indian markets are very very........... Very price sensitive

 

[Sushubh]

why stop at airbags? why not get rid of seatbelts, helmets, rigid body structure? why not just have four seats on an engine connected to four wheels? i mean we do have a lot of people in this country. we can certainly afford to lose a few thousands every day! i say we remove the red lights too. they cost a fortune to setup and maintain.

 

[Sushubh]

I just realized that it's a good thing that Ambanis and the Adanis do not (yet) make cars and other modes of transportation.

 

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[udayan]

It's a society thing not more of an automaker thing as of now

Everyone in india is price sensitive.

Why are you so angry early morning today 😀

 

[Sushubh]

maybe these automakers can collaborate together. setup a large manufacturing airbag unit. ask the government for tax breaks and other concessions. even subsidies on low cost vehicles? instead of coming up with excuses on why airbags are not suitable for indian market?

 

[udayan]

I can actually see that happening now soon (airbags on even small cars) since the debate has started.

10 years ago or so we didn't have even airbags in cars at all even though developed countries had it............. It's a process

 

[Sushubh]

The most surprising thing is that Maruti is actually offering Alto with optional airbags today. They themselves took the initiative. And yet they are pretending that it is a bad thing. I think what all of these automakers can start with is by offering airbag option on all of their models in all variants. Right now airbags are only available in top end variants. I actually had to take the top end model of i10 Grand to get two airbags. Government should make it mandatory for them to offer airbags as an option on all variants so that I can save a few lakhs yet retain the option to get a car with airbags. Or something like that.

Datsun Go... The model which has been making headlines does not even have airbag option on the top variants in its range. Of course, the tests have shown that the car is so unsafe that even airbags would not save the person in case of a major accident. And I almost went for this model because of its engine.

 

[Sushubh]

Maruti Suzuki’s profits are down, overdependence on sales to Uber and Ola may be among the causes

 

[Sushubh]

Maruti Suzuki steers away from diesel engine cars - Livemint

 

[Sushubh]

Nocturnal Animal: Maruti Suzuki starts car servicing at night in five cities - The Financial Express

 

[Sushubh]

Maruti to phase out all diesel cars from April next year

 

[Sushubh]

Explained: The problem with diesel | Explained News, The Indian Express