Maruti plans to invest Rs 4,000 crore on new models, marketing

Maruti Suzuki India plans to invest Rs 4,000 crore this fiscal on capital expenditure in order to enhance its leadership position in the market.

The company, which reported its highest ever annual profit and sales in the fiscal concluded March 31, 2015, said the amount would be utilised on enhancing marketing infrastructure, launching new products and on R&D.

Maruti is looking to set up new display centres where its different models are displayed like it does at the brand centre at its headquarter here.

In the ongoing fiscal MSI is expected to launch its crossover vehicle SX4 S Cross and premium hatchback code named YRA.

Apart from urban markets, the company has also decided to intensify efforts to expand in the rural markets.

"We are at present in 1.25 lakh villages, we would like to add another 25,000 villages this year," Maruti Suzuki India Chairman R C Bhargava told reporters.

He said at present demand is strong in the rural markets but how it would be in the year ahead was hard to predict because of unseasonal rain and prediction of low monsoon.

Out of the total capex planned for the fiscal, the company today released Rs 845 crore for the upcoming plant at Gujarat.

MSI is still awaiting for Parliament to pass the amended Companies Act before going ahead with its plan to seek minority shareholder vote on the change in the ownership and investment at the Gujarat plant, which is proposed to be owned and invested by parent Suzuki.

Maruti Suzuki India Limited