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Maruti Suzuki mulls a made-in-India Kizashi

18 Nov 2010 Evaluate

In a bold move symbolising Maruti Suzuki's growing focus on the premium car market, the company could by mid-2012 offer a ‘Made-in-India' Kizashi, the premier sedan that it will be launching soon. Eventually the company plans to completely manufacture the sedan in India. To start with, it plans to import the Kizashi as completely built units (CBUs) and later start assembly from completely knocked down (CKD) units towards end-2011. The Kizashi is expected to be launched by this December-January.

Domestic manufacture of the Kizashi would help keep costs much lower than the imports and make the car more competitive in a tough market. The current 60 per cent Customs duty on CBUs pushes up the base price by more than 100 per cent (including countervailing duties, education cess and other levies), while CKDs also attract a 10 per cent Customs duty.

Maruti is building up the capability to manufacture the Kizashi as it will require a new level of quality and expertise. It aims to start local manufacturing by the time the expansion of the Manesar plant is complete, giving it adequate capacity. . It is investing Rs 3,625 crore on expansion at Manesar and a new plant. The expected price of Kizashi is put at Rs 17 lakh-Rs 22 lakh. This means, it would compete with D segment sedans such as the Honda Accord, the Toyota Camry and the Skoda Superb.

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