Maruti lines up Rs 4,000 cr capex for next fiscal: Four new vehicles in 2018

The company is also targeting yet another year of double digit growth in the next financial year, similar to what it expects in the ongoing fiscal, he said."It will be Rs 4,000 crore,

By: | Updated: January 29, 2018 4:17 PM

Delhi government, arvind kejriwal, Maruti Suzuki India Limited, Anil Baijal, Motor Licencing Officers, Saray Kale Khan, first automated track, Hauz Khas, Jharoda Kalan

The country's largest carmaker Maruti Suzuki India (MSI) will invest Rs 4,000 crore in the next fiscal on capital expenditure, including development of new products, the company's Managing Director Kenichi Ayukawa said today.The company is also targeting yet another year of double digit growth in the next financial year, similar to what it expects in the ongoing fiscal, he said."It will be Rs 4,000 crore," Ayukawa told PTI when asked about the company's capex for 2018-19.Elaborating on the company's planned investments during the next fiscal, he said: "It will be utilised for new product development, engineering, maintenance of plants and network development."

The company is expected to launch four new products, including the upcoming new Swift, in the next 12-18 months.Commenting on the company's network expansion programme, he said the target is to reach 5,000 sales and service outletsby 2020."These will be under both the Arena and Nexa chains," Ayukawa added.At present, the company has 2,098 traditional outlets which are in the process of being converted to its new retail channel Arena, 289 outlets of premium chain Nexa and 162 for its commercial vehicles.On an average, the company adds at least 200 new sales outlets every year to enhance its reach and penetration. MSI's network has grown from about 1,200 outlets in FY12-13.When asked about the company's growth expectations in the new fiscal, Ayukawa said the company is expecting 2018 to be better than 2017.

Auto Expo 2018: From Maruti Suzuki to Mercedes-Benz cars to expect from Auto Expo 2018

"I believe the market is growing more than 2017 so we will try to keep our growth at the same level of the market at least (in the next fiscal)," Ayukawa said.In the April-December period this fiscal, MSI's domestic sales grew by 15.5 per cent at 12,26,418 units as against 10,61,873 units in the year-ago period.Ayukawa said in 2019, Suzuki's Gujarat plant will reach total production capacity of around 5 lakh units from its two lines there, that will help ease pressure on Maruti Suzuki to meet market demand."At the beginning of 2019 second unit at Gujarat plant
will start and maybe in six months it will have full production of 2.5 lakh units," he said.

Auto Expo 2018: Maruti Suzuki Concept Future S teased again: More design details emerge

In 2018-19, the company is expecting 2.5 lakh units from the Gujarat plant.He said even at the company's existing plants at Gurgaon and Manesar in Haryana, MSI has been able to improve volumes by around 5 per cent through productivity enhancement.The two plants in Haryana produce around 1.5 million carsannually."I think we will try to find further room for improvementthere," Ayukawa said.With production of the new Swift to be totally shifted to Gujarat, he said the company will have more room for Baleno production at Manesar."Swift is the only model at present which we will be producing only at Gujarat," he added.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.