Alka Kshirsagar

Pune May 8 Maruti Udyog Ltd is developing a petrol hatchback with an engine size between that of the Alto and the Swift for sale in the European market, and expects to begin exporting by the end of 2008.

The new model, which will be produced at the company's Manesar plant, will also be launched in the domestic market, Mr I.V. Rao, Chief General Manager, Engineering Division, said.

The company, which stopped exports to Europe three years ago, will look at selling this model both under the Nissan brand name as well as its own, and expects total exports to Europe as well as non-European countries to touch 2 lakh units during 2009-10 fiscal. The domestic target for the same period is 10 lakh vehicles, Mr Rao said.

Meanwhile, the company has seen a robust growth in demand from non-European countries like Algeria, Sri Lanka, Guatemala, Saudi Arabia and Morocco. Having exported 39,295 units, including 9,070 to Sri Lanka and 8,600 to Algeria by the end of March 2007, the company expects this number to touch 50,000 during this fiscal. It exports the Alto, Omni and Maruti 800 to these markets.

In Pune to launch Maruti's latest offering, the SX4, Mr Rao said the new sedan would not be exported to Europe from India as the Hungary plant that produced it along with the Swift would feed that market.

The company has to date invested Rs 950 crore in its Manesar plant and an added Rs 350 crore, including Rs 200 crore by the vendors, to develop the new sedan. It is targeting sales of 4,000 units by May end, Mr Rao said.

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