Suzuki and Versonica joint venture

Maruti Suzuki and Belsonica’s joint venture, Belsonica Auto Components Piert, is expected to reduce the contribution of Maruti’s existing sheet metal supplier per vehicle.

The joint venture was established in July last year and has a plant in Manesar near Marti’s new production plant. Maruti Suzuki owns 30% of the joint venture, the rest of which is owned by Suzuki’s traditional supplier in Japan, Versonica.

The biggest loser is expected to be Marti’s traditional medium-sized sheet metal parts supplier, Jay Barrat Marti. Along with Caparo Maruti, Mark Auto (now SKH Metals) and Rasandik Industries, JBML accounts for most of Maruti’s sheet metal requirements. JBML is one of the top 5 suppliers by Maruti’s value.

Belsonica’s Indian venture is most likely to overlap with JBML’s share of Marty’s sheet metal parts requirements and supplies the same type of parts. According to sources, JBML, which supplies about 90 sheet metal parts to the just-released SX4 sedan, is a multi-purpose model P, which is a compact car under development by Suzuki, which is scheduled to be released in October 2008. Provided less than 20 parts. Manufactured in Manesar and planned for export to the European market. After the introduction of Model P, Maruti aims to export 150,000 units a year, excluding high domestic consumption. The Model P will also be badged by Nissan, which will account for 50,000 units.

Ironically, Versonica was one of JBML’s technology providers in the past. BML alone cannot be the loser because of Belsonica’s Indian venture. Caparo Maruti, Mark Auto and Rasandik Industries all have the potential to reduce Maruti’s average content per vehicle in the near future.

In another development, four sheet metal suppliers were among the top 10 least rated suppliers at the recent Marty Supplier Convention.

Not surprisingly, sheet metal suppliers have been working to increase their share of non-marty business in total revenue. JBML has established a number of companies under the umbrella of “Neil”, which is in charge of businesses other than Marti. These include a joint venture with the Thailand Summit. JBML already supplies Tata Motors, Toyota, Ford, Ashok Leyland, Honda, and several motorcycle companies and Tier 1 suppliers like Delphi.

Caparo Marti is also actively expanding beyond Marti. We have already supplied it to General Motors and Eicher Motors, and are considering expanding it to other OEMs.