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Maruti Suzuki unveils the new Swift
Maruti Suzuki unveiled the next generation new Swift in the premium compact car segment
with base version priced at `4.22lakhs (ex-showroom Delhi) for the petrol version and
`5.17lakhs (ex-showroom Delhi) for the diesel version. The new Swift has over 140 new
features and is built on a completely new platform compared to its predecessor. It is also
expected to offer higher fuel efficiency on account of reduction in weight due to several
R&D efforts taken by the company. According to management, `550cr has been invested
by Maruti and its suppliers in developing the new Swift, which has 95% localisation levels.
The new Swift will replace the old Swift, production of which has already been stopped by
the company since July 2011. The new Swift will be rolled out from Maruti’s facility in
Gurgaon with an initial production capacity of 16,000–18,000 units per month.
The compact car segment has seen a series of new launches in the past couple of months,
in the form of Toyota Liva and General Motors diesel version of Beat. The competition is
set to further intensify with the launch of Honda Brio and a compact car from Hyundai.
As a result, we expect Maruti’s market share to remain under pressure. However,
we expect the new Swift to continue to see strong sales momentum as the old Swift has
already received 50,000 bookings. At `1,186, the stock is trading at 13.2x and 11.7x
FY2012E and FY2013E earnings, respectively. We maintain our Accumulate rating on the
stock with a target price of `1,322
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Maruti Suzuki unveils the new Swift
Maruti Suzuki unveiled the next generation new Swift in the premium compact car segment
with base version priced at `4.22lakhs (ex-showroom Delhi) for the petrol version and
`5.17lakhs (ex-showroom Delhi) for the diesel version. The new Swift has over 140 new
features and is built on a completely new platform compared to its predecessor. It is also
expected to offer higher fuel efficiency on account of reduction in weight due to several
R&D efforts taken by the company. According to management, `550cr has been invested
by Maruti and its suppliers in developing the new Swift, which has 95% localisation levels.
The new Swift will replace the old Swift, production of which has already been stopped by
the company since July 2011. The new Swift will be rolled out from Maruti’s facility in
Gurgaon with an initial production capacity of 16,000–18,000 units per month.
The compact car segment has seen a series of new launches in the past couple of months,
in the form of Toyota Liva and General Motors diesel version of Beat. The competition is
set to further intensify with the launch of Honda Brio and a compact car from Hyundai.
As a result, we expect Maruti’s market share to remain under pressure. However,
we expect the new Swift to continue to see strong sales momentum as the old Swift has
already received 50,000 bookings. At `1,186, the stock is trading at 13.2x and 11.7x
FY2012E and FY2013E earnings, respectively. We maintain our Accumulate rating on the
stock with a target price of `1,322
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