Maruti invests Rs 290 cr on new WagonR

Maruti Suzuki India said it has invested Rs 290 crore in upgrading its hatchback WagonR.

The country’s largest carmaker Maruti Suzuki India said it has invested Rs 290 crore in upgrading its hatchback WagonR that will be rolled out from a new platform with a new engine by end of this month.

The company has stopped producing the ‘Duo’ variant of the existing WagonR,which has both petrol and LPG mode.

“This (new WagonR) is not a minor change,but a full model change. So,lot of investment have gone for it. We have invested about Rs 290 crore for upgrading the model,” Maruti Suzuki India Executive Officer (Marketing and Sales) Mayank Pareek said.

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Vendors have also put in money for the project,which is additional from the company’s share,he added.

Pareek said when the company does a minor facelift of any model,it costs about Rs 50 crore.

When asked about the LPG variant of the existing WagonR,Pareek said,”As of now,we have stopped the Duo and the new WagonR will only be in gasoline.”

Introduction of other variants in different fuel modes will be decided depending upon response from the customers.

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Currently ‘Duo’ contributes about 20-22 per cent of total WagonR sales,which stands at 10,000-12,000 units a month.

The new WagonR will have a Bharat Stage IV emission norms compliant K10B engine. It will be produced from the company’s Gurgaon facility.

“The new WagonR is based on a completely new platform and it has a new transmission also,” Pareek said,adding according to Automotive Research Association of India (ARAI) standards,the car will give a mileage of 18.9 km per litre of petrol.

The company will at first sell the car in the domestic market and later introduce it in the neighbouring nations.

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Maruti Suzuki India has sold about 8.5 lakh units of WagonR since its launch in 1999.

Asked about domestic car market scenario,Pareek said,”Interest rate is a big concern as about 70 per cent of total passenger cars sold is financed. We are waiting for the RBI’s policy review this month.”

The rising commodity prices,especially that of steel,is also a major issue that is bothering all the carmakers,he added.

The company has already hiked the prices twice in the last two months due to rise in excise duty,upgradation of engines for new emission norms and input costs.

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“As of now,we are absorbing the pressure,but don’t know how long we will be able to (hold another round of price increase),” Pareek said.