Maruti Udyog plans foray into new businesses by November

Rupali Mukherjee

New Delhi, May 22: MARUTI Udyog is expected to kick off its proposed foray into new businesses of car insurance, auto finance, corporate lease and pre-owned cars by November this year. The company has set up a senior management team to sign deals with insurance companies and finance companies for its proposed entry into new businesses.

MUL has already announced that it wants to enter new businesses, related with its core business of selling cars — car insurance, auto finance, corporate lease and fleet management and pre-owned cars. It has decided to provide these services in an integrated form.

The business plans of these businesses christened ‘Operation Vistaar,’ has been finalised and approved by the company’s top management. The company is putting together its marketing and advertising strategy to create an awareness in the market about the new businesses.

Research by Maruti Udyog shows that in developed markets, the purchase price of a car is only one-third of the total consumer spend during the ownership cycle of the vehicle.

A third is accounted for by fuel. The rest goes into support services like vehicle insurance and maintenance.