Maruti announces capex of Rs 4,000 crores for new car launches
The countryâ€™s largest automaker, Maruti Suzuki India Limited (MSIL) has ambitious plans in store for this fiscal. Set to concentrate on launch of new models, extensive marketing plans and greater emphasis on Research and Development, the company has announced capital investment of INR 4,000 crores.
The quarter ended June 2014 has seen MSIL net profits increase 21% to INR 762 crores. Net sales for the same quarter have also seen a boost of 11% to INR 11,074 crores as compared to the same period in the previous year. Recent excise cuts and other factors conducive to the growth of the auto industry in India has seen MSIL sales during the April-June period total 299,894 units, while sales in domestic markets increased 10% to 270,643 units. Exports increased 39% to 29,251 units during this period.
MSIL is in the process of developing a new LCV and a crossover (S Cross) set to launch early next year, while this festive season will see launch of the premium sedan Ciaz, Swift facelift and DZire facelift.
MSIL also has plans to enhance its R&D Center in Rohtak, Haryana while it is also building a test track on the same facility spread over an area of 600 acres. New stockyards and warehouses across the country are being planned while the company will be making all efforts to curtail import of spares used in the manufacture of their vehicles. Imported content for cars has reduced to 16% from 24%-25% in 2010-11. Added emphasis on rural areas and niche segments are also part of MSILâ€™s ambitious plans so as to boost sales and strengthen leadership position.
Source – Economic Times via PTI