Maruti plans Rs 6,000 crore investments, targets million unit sales by 2010

Mumbai: Maruti Udyog Ltd is planning a major expansion of its manufacturing and sales set-up involving launch of new models with investments of Rs6,000 crore

Maruti expects to ramp up annual sales to one million cars in 2010.

Most of the planned Rs6,000 crore investment would be for a new car plant, a diesel engine and transmission facility, upgradation of the existing plant and for launch of new models, the company said.

"Your company is aiming at sales of one million cars per year in 2010. Investment in new facilities and in research and development are both part of the strategy to achieve the ambitious sales goal," Maruti chairman S Nakanishi told shareholders at the company's 25th annual general meeting.

The company hopes to attain sales targets with thje launch of  'a series of new models'. Maruti will introduce five new cars in the domestic market in five years. "This will be over and above face-lifts of any existing models and launch of new variants," Nakanishi said.

Besides, the company will expand its sales network and service workshops. "Besides increasing the number of outlets, your company will also revamp the quality of infrastructure and service at these outlets," he said.

The company said most of these investments would be from internal accruals. "We would like to be a debt-free company and, therefore, most of the new investments would be through internal accruals," company Managing Director Jagdish Khattar said.

Maruti sold 48,259 vehicles in the domestic market in August 2006 against 41,717 vehicles sold in August 2005, and exported another 3,596 units.

Maruti's car sales in the domestic A2 segment went up by 22.2 per cent, in the A3 segment grew by 14.6 per cent and in C segment grew by 17.3 per cent during the month compared to its August 2005 sales.