Maruti aims for 1 million units sales by 2010
By agencies   |   Wednesday, 06 September 2006, 19:30 IST
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NEW DELHI: India's largest carmaker, Maruti Udyog Ltd (MUL) is targeting at sales at one million units annually by 2010. In a meet to address shareholders at the annual general meeting, S. Nakanishi, Chairman, Maruti announced that the company is planning to invest $1.3 billion (60 billion rupees) to build a new car plant, a diesel engine unit and a transmission facility in India. “The investment in new facilities and in R&D are both part of the strategy to achieve the ambitious sales,” he remarked. It should be noted here that India's total car sales totaled 1.14 million units in the fiscal year through March 2006. MUL has also laid out plans to develop five new models to be introduced in the next five years. The models are designed in addition to upgradation for existing models that the company plans to introduce. “This will be over and above facelifts of any existing models and launch new variants,” he added. Maruti, whose controlling stake lies with Japan's Suzuki Motor Corp. holding 54 percent, is also looking to start exporting a small car to Europe in the 2008-2009 fiscal year, Nakanishi said. The financial formalities are to be worked through internal accruals according Jagdish Khattar, Managing Director. The recent alliance between Suzuki and Nissan for synergies in manufacturing will provide us leverage for these expansion plans. The scale of operation on account of the Nissan contract is likely to further improve cost and quality competitiveness at the Maruti facilities, Nakanishi said adding that Suzuki and Maruti are also increasing collaboration in R&D efforts. Currently producing 600,000 vehicles a year, Maruti is also building a new plant in nearby Manesar in Haryana state that is scheduled to begin production by the end of 2006. With an initial capacity to make 100,000 autos a year, the plant is to be expanded to 250,000 units by March 31, 2009.

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