You are here: Home » Automobile » News
Business Standard

Maruti Suzuki lines up Rs 5,000 crore capex for current fiscal year

Maruti Suzuki India (MSI) has lined up Rs 5,000 crore capex for various initiatives, including new product launches, for the current financial year, according to a senior company official.

Maruti Suzuki | automobile sales | Auto makers

Press Trust of India  |  New Delhi 

Maruti Suzuki

India (MSI) has lined up Rs 5,000 crore capex for various initiatives, including new product launches, for the current financial year, according to a senior company official.

The country's top carmaker, which had earmarked around Rs 4,500 crore in FY22, also believes that parent Suzuki Motor Corp's investment in Gujarat would help in expanding its battery electric vehicles (BEV) range in the country.

"Capex of Rs 5,000 crore is something that we've committed for this fiscal on various projects, including, the new model launches etc," MSI CFO Ajay Seth said in an analyst call.

The maker of Alto and Swift noted that it would manage the capex through internal accruals, he added.

Responding to a query on Suzuki's plans to invest in Gujarat for local manufacturing of Battery Electric Vehicles (BEV) and BEV batteries, Seth said: "This investment will greatly support in localising the EV manufacturing and help the company to accelerate and expand its BEV product portfolio in India."

The company is planning to introduce its first BEV by 2025.

In March, Suzuki Motor Corporation announced to invest around 150 billion yen (about Rs 10,445 crore) by 2026, for local manufacturing of Battery Electric Vehicles (BEV) and BEV batteries in Gujarat.

On a query regarding the ongoing semiconductor shortage and its impact on the company, Seth noted that the supply situation of electronic components continues to be unpredictable.

"It might have some impact on the production volumes for FY 2022-23 as well," he added.

MSI currently has a backlog of over 3.2 lakh units due to production issues following acute shortage of chips.

"Generally chips will continue to be a challenge in this year also and of course we'll try to maximise our numbers," MSI Executive Director Corporate Affairs Rahul Bharti said.

On a query regarding hybrids, he noted that the technology is very powerful which can work in conjunction with EVs to help reduce carbon and oil import.

"They do about 30-40 per cent of the job of an EV and are many times more scalable. It would be an interesting option and we'll be looking forward to such technologies in the future," Bharti said.

He noted that the company would like to regain over 50 per cent market share in the domestic passenger vehicle segment.

"Of course, as a market leader our target will be to be at 50 per cent market share or more. There are a number of factors responsible for this, one the semiconductor shortage, with the three lakh pending orders if we service that then the numbers and market share would be much higher," Bharti stated.

He noted that the company's market share in the non-SUV segment is over 65 per cent.

"In every segment other than SUV our market share has gone up. Whenever we launch SUVs, of course, the market share has to improve," Bharti said.

The company plans to launch multiple products to consolidate its position in the fast-growing SUV segment.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, May 15 2022. 11:55 IST