Even as home grown automobile manufacturer Tata Motors is all set to launch its ambitious Rs 1 lakh car next year, market leader Maruti Suzuki has assured its shareholders that the car from Tatas would not be a competition to it and it would stick to its own strategy than reacting to competitors plans. Responding to queries from its shareholders at the annual general meeting here Managing Director Jagdish Khattar said the company would continue to focus on its own plans. “Every company has their 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 one 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. If you are a two-wheeler shareholder then please examine” he said. The AGM today approved the change of the company’s name to Maruti Suzuki India Ltd, which will come into effect after it is an approval from the Registrar of Companies. Fiscal 2006-07 has been the best year for the company both in terms of sales performance and financial results. Net sales of the company increased by 21.6 per cent and net profit grew by 31.4 per cent over the previous year. Net profit to net sales ratio increased from 9.9 per cent in 2005-06 to 10.7 per cent in 2006-07. MUL chairman Shinzo Nakanishi also elaborated on the company’s expansion plans to meet the rapidly increasing demands of customers. The company is also in the process of evolving into a complete car maker from a leader in mini-cars and compact SUVs. “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, focussing on bold and aggressive designs and European styling,” Nakanishi said. Since then, Suzuki has designed and launched three new globally strategic models, including the SX4 and Grand Vitara. Nakanishi said the company has investment plans of Rs 9000 crore upto 2010 in new facilities including the new car plant and diesel facility at Manesar, new series engines for its cars and upgradation of the Gurgaon plant. “These will help Maruti further fortify its position in the market,” he added.
