New product (replacing unpopular product) = more revenue
More production = more revenue in growing market
Overinvestment = problem
1. Maruti Udyog Ltd., India's biggest carmaker, introduced its first new sedan model in eight years to defend market share as Honda Motor Co. and Hyundai Motor Co. expand into Asia's fourth-biggest auto market.
2. It will sell the SX4 base model for 618,000 rupees ($15,220) in New Delhi 9 percent cheaper than the competing 1.5 liter Honda City (677,000 rupees).
3. The SX4 with a 1.6 liter gasoline engine is Maruti's fourth new model or upgrade in nine months.
4. The new model replaces the Baleno sedan
5. Maruti plans to introduce more sedans in India as higher incomes may encourage more people to upgrade to bigger cars. Sales of sedans gained 11 percent to 244,247 units in the year ended March 31.
6. Maruti is investing as much as $2 billion by 2012 to increase capacity and produce new vehicles.
7. Suzuki, which owns 54 percent of Maruti, is considering shifting some exports from Japan by shipping vehicles built in India to the Middle East and Africa.
[Click here for full story at: BLOOMBERG.COM]
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