Maruti still remains the most preferred choice
The largest automobile company of the Indian auto industry is too fortunate as it has everything going for it. Maruti Suzuki India Limited has still got the high customer demand for its product and this demand is much more than that of the supply of the product. This mismatch of supply-demand has resulted in the wait-list of around three months for ten of the fourteen models. Despite the adjustment of company’s manufacturing facilities and starting of fresh capacities for its production lines, the gap has become even more wide.
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The automotive sector is witnessing a powerful time where companies are recording a growth of twenty two per cent in the initial six months this fiscal year. Maruti is registering twenty eight per cent growth in the initial half. According to Mayank Pareek, Managing Executive Officer, Maruti Suzuki India Ltd., this situation of the company may continue. For addressing this, Maruti is planning to make an investment of Rs 1,700 crore for a new manufacturing base. The new base will add around 2.5 lakh additional production capacity. Next month, the company board is meeting for finalising plans for the other manufacturing plant, said Pareek. He further added that the board meeting will not only take the decision on the capacity expansion, which can be probably 4,00,000 taking up total capacity to 17,50,000 vehicles but also the quantum of investments. This will be essential as the automotive market of the company is expected to double within the coming three years.
Pareek also stated that the next phase of growth of the company includes investment of Rs 2,500 crore for starting up of a comprehensive Research and Development facility which will include the test track and which will also help in developing an Indian designed car. By the year 2015, with an installed capacity of 17.5 lakh, the company aims to maintain the present market share on the extended market base. Pareek further commented that they have got a market share of fifty three per cent which has come down by one point seven per cent because of production constraints. In the initial six months, the company had a growth rate of twenty eight per cent with total sales of 5.2 lakh vehicles.
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