Maruti Suzuki launched the Brezza and Grand Vitara SUVs earlier this year. After dominating the small car segment, India’s largest automaker now plans to focus more on the SUV segment with new models.
India’s largest car manufacturing company Maruti Suzuki India Limited is planning to step up its game in the SUV segment in the coming days. The automaker has announced it will invest more 7,000 crore this year will be used to develop new SUV models among other areas. Maruti has clarified its SUV plans for the launch of the new generation Brezza this early year. The Grand Vitara is one of Maruti Suzuki’s biggest launches just before the festival month. Among the upcoming SUV models, Maruti is said to be also planning a three-row SUV.
By Maruti The 7,000 crore investment will also be used to build the newest facility near Sonipat, Haryana. Maruti announced an investment 11,000 crore in the first phase of the Sonipat facility. The facility located in Kharkhoda will be the company’s third factory in the country. Maruti aims to be operational in the next three years and expects to produce around 2.5 lakh units annually in the first phase.
Maruti currently produces more than 220,000 vehicles a year at its existing facilities across the country, including the Suzuki facility in Gujarat. The Manesar and Gurugram factories in Haryana produce about 15.5 lakh units annually.
Ajay Seth, Maruti Suzuki’s Chief Financial Officer, said, “All of the new car launches that we’re working on have to invest in tools, etc., I think that’s going to be another big chunk. Because So, here are the two areas where the capex will be maximum.”
He added: “In the near term, the company will try to further strengthen the SUV portfolio to dominate the SUV segment, like all other segments. Seth said Maruti is now looking to bring in more models in the SUV segment after the success of both the Brezza and the Grand Vitara.
Supply chain issues have affected Maruti’s production this year. It has been unable to produce about 35,000 cars this year due to shortages of electronic components. Maruti currently has a backlog of 4.12 thousand vehicles at the end of the second quarter. Its latest models, including the Brezza and Grand Vitara, have pre-orders of around 1.3 lakh.
Date of first publication: November 4, 2022, 16:47 PM IST
