MSIL earmarks 3500 crore as capital investment in 2014; gets more markets for export operations

Maruti Suzuki India (MSIL) has announced that it will infuse Rs 3500 Crore in 2014 as capital investment. Despite what has been a major slump for the auto industry, the Indo-Japanese automaker is currently on a major investment spree and is expanding its existing facilities as well as building a new one in Gujarat. Maruti Suzuki has also said that they had now been put in charge of the export operations to the Middle East, Africa and neighbouring countries.

The Rs 3500 Crore is expected to be used for investment on a third production line at their Manesar Plant, the first phase of the diesel engine line at the Gurgaon plant and finally the new plant in Mehsana, Gujarat which is expected to begin producing cars by the end of 2015.

However, the big news is that the Indian operations will completely handle exports to the Middle East, Africa and neighbouring countries and will also be in charge of sales and service in all these markets. The company has said that if there is enough demand in any of the markets, it will also look at the prospect of setting up local operations and this likely to be in the African nations, who are currently in a similar situation that we (Indian car market) were in 20-25 years ago.

Much like all the other major manufacturers, it seems that Maruti Suzuki, one of the first to setup assembly and eventually manufacturing operations in the country, sees India as a place to conduct cost effective manufacturing. This is likely to have influenced the decision to put the Indian operations in charge of major developing markets.