Maruti Suzuki India (MSI), the country’s largest carmaker, will have a “high number of new model launches” this fiscal, including a compact sport utility vehicle, as it looks to consolidate its leadership position. The company, which will have a new manufacturing plant in Gujarat where its parent Suzuki Motor Corp will invest, said the Centre alone cannot realise the dream of the country becoming a global manufacturing hub. The States too would have to play an equally important role.
“2015-16 will see a high number of new model launches. Suzuki Japan and our engineers here have been jointly working on new model development, and the results are before all to see,” the MSI Chairman, Mr. R.C. Bhargava, said in his address to shareholders.
The company has set a target of achieving two million sales annually by 2020. In order to boost presence in the premium segment, it has launched a new model S-Cross which will be retailed through the company’s new chain of premium car outlets, Nexa. Domestic sales in 2014-15 stood at 11,70,702 units, up 11.1 per cent from 10,53,689 units in 2013-14 fiscal.
On the Make in India campaign, Mr. Bhargava said: “The task of making India a globally competitive manufacturing hub cannot be completed in a short time or by the Central Government alone, and the States also need to play a major role.”
Prime Minister Narendra Modi has given priority to manufacturing in his development strategy and many changes have been made in rules and regulations so as to make it easier to do business.
Commenting on the progress by MSI to enhance R&D, Mr. Bhargava observed: “Our Rohtak R&D facility will be completed by the time we meet next year. This will be a major step forward for the company, and will help new model development.”
On the company’s preparations to enter the light commercial vehicles segment, Mr. Kenichi Ayukawa, MSI Managing Director and CEO, said the company is looking at a new sales network as it did for premium products like the S-Cross through Nexa. “On similar lines, we will work on a channel for commercial vehicle sales, and by the close of the current financial year more than 100 NEXA showrooms would be opened in more than 30 Indian cities.”
The company would also focus more on exports than it had done in the past. “In particular, we have to develop the African and Middle-East markets. We will have to plan for launching global products to serve the advanced markets and expanding our network in the emerging markets as long-term measures in building export strength,” he added.
Referring to the company’s manufacturing capacity, Mr. Bhargava disclosed that the two plants in Gurgaon and Manesar will be fully utilised next year and the company needed new capacity. The two plants have a combined annual capacity of 15.5 lakh units. The Gujarat plant which will have a total capacity of 7.5 lakh units annually when fully completed is expected to start production in 2017. MSI will have a contract manufacturing arrangement with parent Suzuki.
– PTI Economic Service