Maruti Udyog to launch model in Zen segment

Kolkata, Jul 20: Car market leader Maruti Udyog Ltd (MUL) is planning to introduce a mid-segment car model in 2006.

Maruti's director (marketing and sales) S Oishi told reporters that the prototype of the car, to be placed in the Zen category, is being given the final touches for launch this year.

Maruti, which introduced the Wagon R Duo that can run on LPG and petrol, would examine the alternative fuel segment before converting its other versions to LPG version, said M Parekh, General Manager (Marketing).

'' With 142 LPG stations in the country and 42 more stations coming up this year, we will watch the performance in the alternative fuel segment before taking any decision on introducing it in other versions,'' Parekh said.

He said the company has no plans for phasing out the Maruti 800 model as it is showing higher sales till now. ''The segment is showing 19.8 per cent growth and there is no question of discontinuing the Maruti 800,'' he said.

Presently, Alto is the largest selling brand of Maruti, which enjoys 55 per cent market share in India.

On the proposed Rs one lakh car by Tata Motors, he said, ''The proposed car will have no impact on us. It will be a bridge between the two-wheeler and four-wheeler segment.'' Meanwhile, Maruti is setting up a plant at Manesar about 20 kms away from its existing plant at Gurgaon.

The plant, to start production by year end, would have initial capacity of one lakh units and the company has earmarked around Rs 6,200 crore for the capital expenditure.

UNI