Maruti Suzuki’s 2 mn, 2020 vision; here’s what it is all about

Maruti Suzuki is understood to have told its suppliers last month to ramp up the production of the components used by it as it expects volumes to increase substantially in the next five years and beyond.

Two months back, the company held a suppliers’ conference in Thailand where it unveiled a presentation of its future product plan and the road map to achieve 2 million vehicle sales by 2020, a supplier who attended the meet told FE.

At a time when most of the manufacturers are struggling to increase volumes, Maruti has managed to sell more than 1 lakh vehicles in each of the last 12 month. With the increase in sales of its premium products, margins of the component manufacturers also get enhanced.

“Component manufacturers are very much dependent on original equipment manufacturers (OEMS) for growth in their topline and Maruti has managed to sustain us in the last financial year. The Baleno saved us big time last year,” said an executive of a company which is associated with most of the top vehicle manufacturers.

Maruti Suzuki will commission its Sanand manufacturing capacity by the third quarter of FY17, so the company wants most of its suppliers to be in line with their plan.

Maruti Suzuki India Limited