Maruti aims to keep market share
24 March 2010
Maruti Suzuki is gearing up to further strengthen its hold over the Indian car market, even as increasing number global rivals are looking to make inroads into the Indian small-car market.
The company, with a nearly 55-per cent stake from Japan's Suzuki Motor, will invest around Rs2,500 crore on consolidation of engine and plant capacities and establishment of an R&D centre at Rohtak in Haryana, according to Suzuki chairman Osamu Suzuki.
Recently, Maruti had announced it planned to invest Rs1,750-crore for the expansion of annual capacity at its Manesar, Haryana plant by 2.5 lakh units in two years. Currently, the company's Manesar and Gurgaon plants between them roll out some 10 lakh cars annually. (See: Maruti Suzuki gearing up production lines to step up production)
The auto major will also augment engine manufacturing capacity to 7 lakh units from 5 lakh a year in two years to produce the K-series engines.
The company has initiated its investment drive to take on rivals such as Toyota, Honda, Nissan, Ford and Volkswagen in the lucrative small car segment, which makes up around 80 per cent of the Indian car market.
These companies have either announced their intentions to launch small car projects or are in the process of implementing them.