'Maruti investing about Rs 4k cr in key areas in 2-3 yrs'

Written By Unknown on Selasa, 04 November 2014 | 21.03

MSIL would also focus more on bringing out models with auto gear shift technology, going forward, executive director-engineering, CV Raman said

Country's largest car maker  Maruti Suzuki India is investing up to Rs 4,000 crore in the next 2-3 years in key areas like product development, R&D and marketing infrastructure, a senior MSIL official said today.

MSIL would also focus more on bringing out models with auto gear shift technology, going forward, executive director-engineering, CV Raman said. "Currently Rs 4,000 crore worth of investments are going into research and development, product development and marketing infrastructure over period of two to three years (including the current year).

"We will be improving our R&D capability. We are setting up test labs and other facilities. Marketing infrastructure such as setting up stockyards will be created," Raman said on the sidelines of launch of the company's new version of Alto K10 hatchback.

The company is expected to come out with a SUV- XA Alpha- next year, he said. Replying to a query, Raman said as of now there are no plans to make diesel engines while Suzuki is working on various types of engines in diesel. On the reports of crash test failure of Swift, Raman
said the car meets all standards set by the Indian government.

"All MSIL as well as other vehicles comply with Indian regulations. As far as swift is concerned. The test is not mandatory in India. There is no regulation to pass that test," he said. According to the Global NCAP, an umbrella body of consumer car safety testing bodies, crash tests of Nissan's Datsun GO and Maruti-Suzuki's Swift demonstrated a high risk of life-threatening injuries with both cars receiving zero-star safety rating for their adult occupant protection.

He asserted that the Global NCAP report will not have any impact on Swift sales. The production of auto gear shift models is being ramped up to meet the market demand, he said. "Currently, roughly about 4,000 vehicles (are being produced) per month with AGS technology and going forward will ramp up this number. We feel that the two pedal technology is very relevant now. Obviously the auto gear models would increase the volume. May be in future we look at coming out with more models in AGS," he said.

Raman said the sales of diesel vehicles could go up as the price difference between petrol and diesel is narrowing.

Maruti Suzuki stock price

On November 03, 2014, Maruti Suzuki India closed at Rs 3285.60, down Rs 52.75, or 1.58 percent. The 52-week high of the share was Rs 3349.00 and the 52-week low was Rs 1541.25.


The company's trailing 12-month (TTM) EPS was at Rs 102.82 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 31.95. The latest book value of the company is Rs 694.45 per share. At current value, the price-to-book value of the company is 4.73.


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