Maruti Suzuki looks to advance expansion plan
Maruti Suzuki, India’s top carmaker, is looking to speed up expansion plans to meet booming demand in the fast-growing south Asian country, its managing director said on Wednesday.
Shinzo Nakanishi also said the company, 54.2 percent owned by Japan’s Suzuki Motor Corp, does not expect royalty payments to its parent to rise from about 5 percent of sales now.
In the June quarter the company’s profit had dropped 20 percent on an unexpected rise in royalty fees, and triggered a slide in its shares.
Maruti reached full capacity of 1 million vehicles a year in March and has been struggling to cope with long queues of buyers.
It is building a second unit in the northern state of Haryana to add production capability of another 250,000 vehicles a year, scheduled for completion by April 2012.
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