Maruti Suzuki’s board approved a capex of INR40bn (US$651m) for the fiscal year 2014-15, reports The Economic Times. Apart from R&D, new model launches and marketing activities, the expenditure will also cover new proposals for the planned production plant in Gujarat. In comparison, the company’s capex for the fiscal year 2013-14 was INR30bn.
“Board approved capex for 2014-15 will be around INR40bn. The investments would be mainly for new models, marketing infrastructure and R&D,” a company spokesperson said.
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The company revealed two concept cars – SX4 S-Cross and Ciaz at the Auto Expo in February 2014, from which SX4 S-Cross is expected to be launched in India later in 2014. It is also developing compact SUV, which might be introduced early in 2015.
In addition, Maruti Suzuki has been bolstering its R&D centre at Rohtak in Haryana, where a test track has been under development, and is improving the capability of the centre for faster introduction of new models in the market.
The company has been focusing on boosting its leadership position by targeting rural areas and niche segments to increase sales in the midst of rising competition and a slower overall market.
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