Maruti to invest Rs.4,000 cr in key areas

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SME Times News Bureau | 05 Nov, 2014
Maruti Suzuki India Limited (MSIL) is investing Rs.4,000 crore in product development, research and development, marketing infrastructure and other key areas.

C.V. Raman, executive director-engineering, MSIL, said the investments will be made in 2-3 years, including the current year.

Talking to reporters at the launch of new version of Alto K10 hatchback here Tuesday, he said the company will improve its R&D capability.

The company is setting up test labs and other R&D facilities. An R&D centre is coming up in Rohtak, which will have crash lab and proving ground.

Raman said MSIL would also focus on bringing out more models with Auto Gear Shift (AGS) technology to meet the market demand.

Currently, the company is making about 4,000 vehicles per month with AGS technology. "The current capacity for AGS vehicles is 3,500 to 4,000 per month, going forward will ramp up to meet the overall requirement," he said.

Raman said the sales of diesel vehicles could go up as the price difference between petrol and diesel is narrowing.

MSIL is expected to come out with an SUV-XA Alpha next year.

Asked about Swift failing crash test by Global NCAP, an umbrella body of consumer car safety testing bodies, Raman said the car meets all standards set by the Indian government. "The test is not mandatory in India. There is no regulation to pass that test," he said.

Replying to a query, he said the overall sale of Maruti in Andhra Pradesh last year was bad. However, this year the sales in the state are up by 30 to 35 percent and in Telangana by 5 to 6 percent.