Japan's Suzuki Motor - through Maruti Suzuki - is planning a 70% increase in its dealership network in India to 6,800 by FY30, according to a Nikkei Asia report on September 25.
As the end of June quarter, Maruti Suzuki had a dealer network of about 3,900 outlets. Suzuki's subsidiary and India's largest car company in terms of market share, Maruti has been increasing its dealerships every year by a count of 200 over the past several years.
Starting this fiscal, Suzuki plans to raise the dealership expansion by 2.5 times to around 500 every year, and plans to add around 2,900 dealers over next six years, said Nikkei Asia. These additions will be made in smaller cities where income levels are rising.
The report adds that Suzuki's ramp up is also owing to slowing car sales in China, aside of India's growth potential as per capita income rises.
Suzuki plans to introduce its first-ever EV in India, as well as in Europe, next year.
Separately, Nikkei Asia has reported that Toyota Motor has plans to build a new factory in India. Toyota has a strategic partnership with Suzuki, according to which Toyota will take the lead on bigger models in India, while Suzuki will likely focus on smaller cars.
Earlier in September, Ford Motor said it plans to restart a manufacturing plant for exports in Tamil Nadu. The US-based carmaker has submitted a Letter of Intent to the state government for this.
The listed peers in the sector also also about to have company, as South Korean auto major Hyundai Motor's Indian arm has moved a step closer to launching its proposed initial public offer of around $3 billion. People in the know told Moneycontrol on the condition of anonymity that market regulator Sebi has given the go ahead for the mega issue.
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