Maruti Suzuki India, the largest auto maker in India has planned to make a capital investment of about Rs. 3,500 crore to strengthen its market leadership. The Indian wing of Suzuki Motor Corp accounts for 40% of total volumes and will be responsible for export markets such as Africa, Neighbouring countries of the group and the Middle East.
Maruti Suzuki India Chairman R C Bhargava said: "The capital investment proposed this year is approximately Rs. 3,500 crore. And this will only increase as we go ahead." The company while addressing shareholders in the company's annual report for 2012-13 said it is continuing with all planned investments to increase production capacity and introduce new products.
Bhargava said: "Work on the Gujarat site has commenced and we expect to start production by the end of 2015-16. The Manesar 3rd line will be commissioned soon, as also Phase I of the diesel engine line in Gurgaon.” Commenting on the export strategy, Bhargava told, "Suzuki Japan has decided that India will now be responsible for the export markets of Africa, the Middle East and our neighbouring countries." He further added, Maruti Suzuki India with the help of Japan will be responsible for adequate sales and marketing arrangements in the mentioned markets.
Maruti India is continuing its efforts to offer better vehicles at competitive price range. The company is working to localise inner parts, cut cost and improve quality. In 2012-13, the auto major has received as profit Rs 2,392 crore, in comparison to Rs 1,635 crore in the previous year. Even when the auto market is in tough situation, MSI Managing Director and CEO Kenichi Ayukawa expressed "endeavour to break through the situation and achieve better than last year in every respect."