Maruti earmarks 40% capex for product development – Feedback

In a move to strengthen its research & development (R&D), India’s largest car maker Maruti Suzuki India (MSIL) plans to use 40 per cent of its proposed capex of Rs 4,400 crore for the current financial year for new product development. Part of the investment will go towards the new, Rs 2,000-crore R&D and testing centre at Rohtak in Haryana. The capex in 2015-16 was Rs 2,400 crore.

In a recent conference call to investors, the company said some of the projects had been deferred to the next year. C V Raman, executive director (engineering) at MSIL, said the Rohtak centre would help the firm scale up. MSIL will continue to support Suzuki Motor Corporation (SMC) in manufacturing global models. The facility is expected to be ready in the next two years. Raman added that the R&D centre in India had evolved itself in end-to-end development. MSIL and SMC complement each other’s capability in R&D. Suzuki would introduce 20 new models by 2020 and at least 15 of them would be in India, said Raman, adding that this would be over and above the existing model refreshments and upgrades.

http://www.business-standard.com/article/companies/maruti-earmarks-40-capex-for-product-development-116052401099_1.html

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