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Maruti Suzuki to invest INR 15,000 cr on distribution and sale infrastruture

Maruti Suzuki investments by 2020

The investment involves doubling the infrastructure in the next 5 years.

Maruti Suzuki‘s primary advantage is undoubtedly its strong distribution and sales infrastructure which is second to none. So naturally, the company wants to maintain this crucial advantage in the future as well and that would mean heavy investment. Business-Standard reports that the automaker as earmarked a hefty investment of INR 15,000 crore over the next 5 years to double its sales and distribution infrastructure.

The money will be spent on procuring land to double its dealership network (more Nexa outlets would be established) and expanding warehouse, stockyard and logistics infrastructure. The move is a part of Maruti Suzuki’s goal to achieve 2 million annual sales by 2020. It’s going to be a challenging task as the country’s largest passenger car maker’s current annual sales stands at 1.1 million units (in 2015-15), and the pressure from competition in mounting.

maruti nexa launch

Out of as estimated total investment of INR 30,000 crores, INR 15,000 crores will be invested by dealers.

The company’s quest for incremental volume would be supported by the new Gujarat plant which is expected to go on stream by early 2017. Talking to Business-Standard, R C Bhargava, Chairman, Maruti Suzuki, said that the company has to double its network as the Gujarat plant output will lead to a gradual doubling of sales. The doubling of sales and distribution infrastructure is estimated to cost INR 30,000 cr of which INR 15,000 will be invested by dealer partners.

Also read – Maruti to launch 15 new products by 2020

Maruti Suzuki currently has 1,700 dealership outlets across the country which means, a doubling operation would cover pretty much every nook and corner of the country.

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About the author

Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

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