【New Delhi】India's largest carmaker Maruti Suzuki, which aims to increase its annual sales to about 2 million units by 2020, will invest Rs 15,000 crore over the next five years in procuring land for doubling its dealership network and expanding stockyard, warehouse and transportation infrastructure.
The company had sold 1.1 million vehicles in 2014-15. The volume increase in annual sales will be led by production at Maruti Suzuki's third plant in Gujarat, expected to become operational by early 2017.
○Was ‘October Car Sale’ a flash in the pan or the start of a turnaround?
【New Delhi】Discretionary consumer spending was mediocre until September. During the first six months of FY16, the car market grew ~10% year on year. However, this growth is not in sync with any other discretionary products. Other consumer discretionary products including air conditioners, paints, and jewellery are not growing at more than mid/low-single digits with visible pricing/competitive pressure, as well as some down-trading in consumer buying. -OMIT-
In October cars, UVs and 2Ws have all increased sharply, positively surprising the Street. This raises two key questions: (i) What led the +10% growth in the car market in the first half of FY2016 when spending across other discretionary items has been soft? and (ii) Is the sharp pick-up in October a flash in the pan or an early sign of a turnaround in consumer sentiment and spending?
Maruti to spend Rs 15,000 cr to double sales infra in 5 years
Auto Sector update: Was ‘October’ a flash in the pan or the start of a turnaround?
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