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 automaker, which had budgeted around Rs 4,500 crore for FY22, also believes that parent company Suzuki Motor Corp’s investment in Gujarat would help expand its range of battery electric vehicles (BEVs). ) in the country.
“Capex of Rs 5,000 crore is something we have committed for this financial year on various projects including new model launches etc,” MSI CFO Ajay Seth said on a call for analysts. The Alto and Swift maker has indicated it will manage capital spending through internal accruals, he added.
Responding to a question about Suzuki’s plans to invest in Gujarat for local manufacturing of Battery Electric Vehicles (BEVs) and BEV batteries, Seth said: “This investment will greatly support the localization of EV manufacturing and help the company to accelerate and develop its BEV product. portfolio in India.”
The company plans to introduce its first BEV by 2025. In March, Suzuki Motor Corporation announced that it will invest around 150 billion yen (about Rs 10,445 crore) by 2026, for the local manufacture of battery electric vehicles ( BEV) and BEV batteries in Gujarat.
MSI currently has an order book of over 3.2 lakh units due to production issues following a severe shortage of chips. “In general, chips will continue to be a challenge this year as well and we will of course try to maximize our numbers,” said MSI’s Executive Director of General Affairs, Rahul Bharti.
He noted that the company would like to regain more than 50% market share in the domestic passenger vehicle segment. “Of course, as the market leader, our target will be to be at 50% market share or more. There are a number of factors responsible for this, one the shortage of semiconductors, with the three lakh backorders if we serve that then the numbers and the market share would be much higher,” Bharti said.
He noted that the company’s market share in the non-SUV segment is over 65%. “In all segments other than SUVs, our market share has increased. Every time we launch SUVs, of course, the market share has to improve,” Bharti said.
The company plans to launch several products to consolidate its position in the growing SUV segment.
First post: STI