Maruti Suzuki lines up Rs 5,000 cr capex

Maruti Suzuki India (MSI) has set aside Rs 5,000 crore in capital spending for various projects, including new model releases, for the current financial year, according to a top company executive. Suzuki Motor Corp. said its investment in Gujarat will help it expand its battery electric vehicle (BEV) line in the state. 
 
In an investor call, MSI CFO Ajay Seth remarked, “We’ve committed Rs 5,000 crore in capital for this year on various projects, including new model releases and so on.” 
 
He indicated that the maker of Alto and Swift would use internal accruals to keep expenditure low. 
 
For capital expenditure, Maruti Suzuki India (MSI) has put aside Rs 5,000 crore. The business intends to launch its first BEV by 2025. 
 
Suzuki Motor Corporation announced in March that by 2026, it will invest over 150 billion yen (about Rs 10,445 crore) in Gujarat to develop and manufacture battery electric vehicles (BEVs) and BEV batteries locally. 
 
Seth said that the supply situation for electronic components remains surprisingly unstable in response to a query regarding the present semiconductor shortage and its impact on the company. 
 
He added, “It could potentially have an impact on production volumes in FY 2022-23.”

Maruti Suzuki

MSI presently has a backlog of over 3.2 lakh units due to production issues caused by a severe scarcity of chips. 
 
Seth said that the supply situation for electronic components remains surprisingly unstable in response to a query regarding the present semiconductor shortage and its impact on the company.  
 
Of course, as the industry leader, we’ll aim for a 50 percent or higher market share. There are various reasons for this, including a semiconductor scarcity; if we could fulfil the three lakh pending orders, our numbers and market share would skyrocket, Bharti claims that.

In the non-SUV segment, he claims the company has a market share of over 65 percent. 
 
“With the exception of SUVs, our market share has grown in every segment.” Naturally, when we offer SUVs, our market share must increase,” Bharti explained.