Car maker Maruti Suzuki is pursuing a multi-pronged strategy to achieve 2 million-a-year vehicle sales target by 2020, that comprise new launches, improved R&D capabilities and creating a separate marketing channel for premium products.
The company, which sold over a million cars last year (11.7 lakh), has already announced plans of setting up a plant in Gujarat.
This will be in addition to the existing facilities in Gurgaon and Manesar, both in Haryana. While the total capacity of the plants is 15 lakh vehicles, the Gujarat facility will eventually bring 7.5 lakh units more.
The new plant, to be operational in 2017 and a crucial component for achieving the nearly two fold growth in sales will be in the first phase to make 2.5 lakh vehicles.
According to Maruti Suzuki India Ltd Executive Director (Marketing & Sales) R.S. Kalsi the company had several new products in the pipeline. Parent company Suzuki [alone] will "provide 20 new products which with minor or major modifications" will be launched in India.
Interacting with presspersons at the opening of Saboo R.K. Motor's Nexa Jubilee showroom in Hyderabad on Friday, he said that the new facility will be to promote high-end cars from the Suzuki stable beginning with the S-Crossover (diesel cars priced tentatively between Rs.8.5 lakh and Rs.14 lakh.). "We have many more high-end products in the pipeline," he replied to a query. The much awaited compact SUV will be launched by this fiscal end.
On the target of 2 million, by a company that retains market leadership but with relatively lesser margin, Mr.Kalsi said that Maruti Suzuki gained 2.9 per cent market share last year (to touch 46 per cent). "This year [too] we are gaining market share and looking at double digit growth," he added.
Greater emphasis on customer-centric measures, including more fuel efficient engines, besides a thrust on research and development figured in the plan.
The company's R&D facility in Haryana was partly operational and expected to become fully operational in 2017. It will evolve as an independent research facility undertaking work now being sent to Japan. The entire vehicle testing cycle would reduce, he said, adding there were plans to open regional and area offices in more cities across the country.
The capital expenditure planned this year is around Rs.4,000 crore, which will go towards the R&D centre, upgrading of manufacturing plants and expanding the marketing and sales network, Mr.Kalsi said.
