Maruti Suzuki to iinvest Rs 1,75 cr in R&D

Mumbai: Determined to maintain its 50 per cent share in the increasingly competitive automobile market, Maruti Suzuki is going to strengthen its R&D facility and marketing network.

“The company will invest ¥50 billion (Rs 1,751 crore) in R&D in three years. We are looking for a place to set up an R&D centre. It will come up in two-three years,” said Mr Shinzo Nakanishi, who will take over as the Managing Director and CEO of Maruti Suzuki on December 19.

“We currently have 800 – 1,000 people working in our R&D wing. We will recruit more people,” said Mr Nakanishi, in his first interaction with the presspersons after being announced as the Managing Director and CEO of the company.

The company had already announced its plan for investing ¥200 billion in its manufacturing facilities at Gurgaon and Manesar up to 2010.

Showrooms

He also said that Maruti Suzuki will set up showrooms across the country to introduce its models to the customers.

“The proposed showrooms are not meant for sales. Sales will be only through our dealers. This is to make people acquainted with our models,” Mr Nakanishi said.

As regards Rs 1 lakh-car, he shared the view of Mr Osamu Suzuki, Chairman and CEO of Suzuki Motor Corporation. “What is Rs 1 lakh? Is it the manufacturing cost or ex-factory price?” he asked. He reiterated that Maruti Suzuki aims for producing one million cars by 2010.

“The Indian market is growing by 10-15 per cent. We hope to sell one million cars a year in three years time,” he said.

He was in Mumbai to deliver a lecture at Indian Merchant Chamber on ‘Business development and manufacturing in India’.