Excerpts from CNBC-TV18’s exclusive interview with Jagdish Khattar:

Q: As you go, how do you leave Maruti in safe hands to ride out into 2008 strong or is 2008 looking like it is going to be a really competitive year with lots of new launches coming in?

A: We are used to it, every year it starts off like this and as the year progresses, we also keep on working out our strategies and we are able to hold on to our market position. In fact, till the end of November, our market share has improved by 2%.

 In fact, in November it was nearly 59%. There is competition, but we also have a good product line that has been strengthened recently; our network is strong and motivated and we all work as a team to ensure that we are able to hold on to our position.

Q: As you will be exiting the company now, I am sure you will speak a bit more candidly, how are you feeling about the way the sector is shaping up particularly by way of pricing because like you have mentioned, the competition is there and the first place it shows up in is in pricing cuts?

A: Whatever is happening happens in a competitive market, we’ve got to get used to it. In a competitive market where there have been constraints this year, specially with the rate of interest and other things, we have to take it in a stride because we have spent far more this year on our marketing budget than we did last year.

So hopefully the things may improve as far as the financing is concerned in the coming months but if the situation as it exists now we have to face it and try and do our best.

Q: Your new models have now started stabilizing, Swift has already and for SX4, the initial feedback and sales have been very encouraging; what kind of average monthly numbers do you see these two models stabilizing in 2008?

A: At the moment these two models are being produced in our plant in Manesar - that is a new plant that has come up. Our capacity is 100,000; today we are working that plant at 120,000, if you annualize it. So we are producing about 7,500 Swift and about 3,000 SX4 models. And we are not only selling all that, but we have back orders with both these models. In fact, these are the only two models in the country today where there is back order.

So I do not see any reason why we cannot continue selling 7,500 of Swift and SX4. Coming next year, our capacity would increase, but we would also be adding a new model in that plant. So I think in 2008, the availability should improve.  

Q: How are things shaping up though in this highly competitive hatchback segment? What initial feedback are you getting about how Hyundai’s new release has been taken?

A: I think they have been in this market only for a month and a half and I do realize that they will take time in ramping up their production. The effect of this model coming into the market would really be felt from next year. I am very sure that as far as our models are concerned, we are doing about 12,000 units of our WagonR and that is our capacity. Even in our Zen, which was doing 3,000-3,500 units, now we are doing more than 5,000.

I think by Hyundai coming in this model, the customers will have more choice but it also depends upon the growth of the market. If the market grows, I think all of us should be able to do our numbers.