Month: November 2016

MSIL reported a stellar 2QFY17 with PAT at Rs 23.9 bn (+95% YoY/ +61% QoQ). Decade high EBITDA Margin at 17% came in 180bps ahead of our estimates, helped by lower raw material, employee and other costs (marginally negated by lower operating other income). MSIL remains one of the best placed companies to leverage the opportunity in domestic PV segment given a) best in class network, b) best in class product range, c) understanding of Indian consumers, d) traction of recent launches and e) history of coming out big products which have defined new segments (Dzire, Ertiga etc). However current valuations leave us with limited upside in near term. Consequently we maintain our hold rating on the stock with revised target price of Rs 5,340 (21x FY18E EPS). While we continue to like MSIL for its robust business model (improving sales mix, higher cash flow generation, lower capex and higher payout), we see limited upside from current levels in near-medium term, given the current valuations (trading at 26xFY17E PER/ 23xFY18E PER). Consequently we maintain our hold rating on the stock with revised target price of Rs 5,340 (21x FY18E EPS).

The upcoming Baleno RS will mark Maruti’s entry into the hot hatch space that is currently dominated by the likes of Volkswagen Polo GT TSI, Fiat Punto Abarth, and Ford Figo hatchback.

It is a car we are looking forward to but as promised at Auto Expo this year, the Baleno RS will only be launched in early 2017.

Blame this delay on the current demand for both the Baleno and the Vitara Brezza. The company is trying its best to keep up with the demand but still, the waiting period for both cars is anywhere between 3 to 8 months (depending on the variant).

Maruti Suzuki expects a similar demand for the Baleno RS and considering it has been spotted testing in India on several occasions, we know it’s ready for launch. The recent mules we saw were the ones without any camouflage and in a new metallic black body colour with chrome accents.

That said, we believe a new colour option will more or less be the only visual change on this performance-spec Baleno.

We’re interested in driving this one because it gets the 1.0-litre BoosterJet turbo petrol motor which is capable of producing a maximum of 110bhp and develop a peak torque of 170Nm. The motor will come mated to a CVT unit and possibly a manual gearbox as well, which will be a master stroke if you ask us.

Among feature additions, the new Baleno RS is likely to come with SmartPlay infotainment system with Apple CarPlay while the multi-function steering wheel from the standard could be replaced with a flat-bottom unit.

You also get aluminium finish pedals to complete the look. So the sporty credentials of the car have been taken care of.

Both the Baleno RS and the Ignis will be retailed via Maruti Suzuki India’s premium dealership network – Nexa. Expect a price tag in the vicinity of Rs 8 lakh to Rs 9.5 lakh.

Maruti Suzuki Ignis launch has been pushed to 2017 due to surging demands for the Baleno and the Vitara Brezza.

Maruti Suzuki Ignis is expected to make its entry into the Indian market in early 2017. Although the Ignis, the compact crossover was expected to be launched in the country in the festive season this year, the production constraints of the current model like the Vitara Brezza and the Baleno is said to have forced the company to push back the launch to 2017.

Maruti Suzuki Ignis was first showcased in India at the Auto Expo 2016 and the model has been going through rigorous testing since then. While earlier reports have said that the Ignis would get a 1.2-litre VTVT petrol engine and a 1.3-litre MultiJet diesel unit under the hood, a report of MotorOctane suggests that the crossover could also get SHVS (Smart Hybrid Vehicle by Suzuki) technology in India.

If Maruti launches the Ignis with mild hybrid system, the crossover would benefit from the FAME (Faster Adoption and Manufacturing of hybrid and Electric vehicles) scheme launched by the government of India, which is offering incentives on electric and hybrid vehicles up to Rs 29,000.

Although Maruti has not talked so far about launching the Ignis in hybrid avatar, recent reports have said that the company is working on low-cost hybrid technology to power its future models. Maruti is also said to be considering a 1.0 BoosterJet turbo-petrol engine for Ignis and it could also be made available with Automated Manual Transmission (AMT) box.

The Ignis is expected to feature high-end Harman Kardon audio system and safety features such as ABS with EBD, airbags and hill descent control. When launched in India, the Ignis will be sold through Maruti Suzuki’s premium showrooms – the Nexa. The Ignis will be pitted against Mahindra KUV100 and is expected to get a price tag starting at Rs 5.5 lakh.

Kenichi Ayukawa, MD & CEO, Maruti Suzuki India Limited, was awarded ‘Best CEO – Multinational Company’ at Forbes India Leadership Awards (FILA) 2016 in Mumbai.

Ayukawa was selected for steering Maruti Suzuki towards the “next phase of sustainable growth” and driving “deep-rooted changes in the organisation”. The jury recognised his achievements as a CEO which included adaptability to change, vision for India, strategic approach, and innovative thinking.

The jury was chaired by Harsh Mariwala, Chairman, Marico Ltd. and included Sanjay Nayar, CEO, KKR India; Noshir Kaka, Managing Director, McKinsey India; Zia Mody, Managing Partner, AZB & Partners; Roopa Kudva, Managing Director, Omidyar Network and Manish Sabharwal, Chairman & Co-Founder, TeamLease Services.

Ayukawa, who earlier served in the US, Japan and Pakistan, took over as MD & CEO of Maruti Suzuki in 2013. In recent years, the Company has launched highly successful models like Baleno, Brezza, Ciaz, Celerio and S Cross. It has also redefined the car buying experience and attracted new categories of customers through its new channel, NEXA.

Maruti Suzuki has also scaled up its social initiatives, doubling its CSR spend last year. The Company follows an integrated approach to rural health and sanitation, building sewer systems, household toilets and waste management processes. It is working to improve retention and learning levels in schools, including improvement in infrastructure. Its efforts in skill development and driver training efforts benefit several thousand youths through enhanced employability, besides making roads safe.

An all new limited edition of Maruti Suzuki’s top selling car Wagon-R has been announced by the automaker. Called the Wagon-R Felicity, the special model will be available in the Lxi and Vxi variants. The carmaker is offering the limited edition in all fuel options as well as manual and automatic transmissions.

Pricing for the Wagon-R Felicity starts at Rs 4.40 lakhs going up to Rs 5.37 lakhs for the Vxi-AMT (O) variant.

While there are no changes in the design or the motor, Maruti has added comfort, convenience, and entertainment features. These include reverse parking sensors with display and voice guidance, double-din Bluetooth music system with speakers, PU seat and steering covers, body graphics and a rear spoiler.

According to R. S. Kalsi, Executive Director Marketing & Sales, Maruti Suzuki India Limited, “Wagon R is one of the most successful car brands ever in India. As the brand has evolved, its popularity and loyalty have grown. Wagon R has been among India’s top five best selling cars for the last five years in a row. We wanted to celebrate the brand by creating something distinct and special, which is fresh and feature rich. Wagon R Felicity is the result, and will be available only in limited numbers. I am sure it will appeal to Wagon R loyalists as well as compact car customers who are looking for a product that is unique and distinct.”

The Wagon-R has been quite a successful product for the carmaker. Recent numbers claim that in October 2016, the car was the third-most selling passenger vehicle in India with 15, 075 units .