Suzuki dwells on baby car choice

Hungary or India? This is the choice as Suzuki Australia looks for its coming low-cost starter car.

An Indian model, the A-Star, has been unveiled as a concept at the New Delhi Motor Show. It looms as a rival to the baby Splash that was revealed at last year's Frankfurt Motor Show for production in Hungary.

They are a similar sub-Swift size and will be priced in the $13,000 range.

And there will be another new factory in Thailand in two years.

“We will have to make a choice. I don't think we can fit two cars, the Splash and the A-Star, into the same segment,” Suzuki Australia managing director Tony Devers says.

“We are looking at the A-Star and there is a good possibility it could come. We are looking at the timing and the plan for the Splash.”

Suzuki describes the five-door A-Star hatchback as its fifth global model. It was designed in Europe, but is planned to have a tiny 1.0-litre alloy engine suitable for developing countries such as India. It will be a sporty drive and there will be a diesel engine choice.

“Suzuki is very strong in India with about 60 per cent market share. It is developing its factories there to become a global producer,” Devers says.

The A-Star is only a concept at the Delhi show, but it is being rushed into production. The first cars are expected from the Maruti Suzuki factory at Manesar in October.

Suzuki has already confirmed deliveries to Europe from December, with other countries — possibly Australia — from early next year.

Devers says Suzuki Australia will have a close look at the A-Star before deciding between the Indian car and the Splash. And the decision will not just be about price.

“The Splash is a great car, but this is very similar. Looking at pictures and specifications, they are designed by the same team and use the same floorpan. So it will come down to value, price and availability,” he says.

“The quality will be the same from either plant. Hungary is very good and already supplies all of Europe, and Suzuki has had workers from the production line in India on 12-month assignments in Japan.”

Though Suzuki Australia will not get its new starter car until next year, Devers believes it will hit a sales record this year.

“We did 21,500 units last year, so we're looking for 28,000 this year,” he says.