Maruti Suzuki, India's largest car manufacturer has laid high hopes from the Indian car market. India is believed to account 30% of Suzuki's operation in terms of worldwide car sales and about 34% in terms of Suzuki Motor Company's profitability.
Shinzo Nakanishi, managing director of Maruti Suzuki, said that Maruti is on a perfect track to sell at least one million units in the domestic market within the next two years. The company also expects to export nearly about 2 lakh units to add to the profitability. The company promises the sales and export despite of the current downturn and impending launch of small car and low-cost cars.
But, will Maruti be able to keep its words when the domestic market will be loaded with small and low-cost cars in the next couple of years. During that time, it would be difficult for Maruti to cope with the expected sales target. Will Maruti be able to retain its over 50% market share after two years?
Maruti comments that if the number of the low-cost cars increases, then the market share post 2010 will obviously be lower than the expected 50% share.