Why automobile company Maruti Suzuki buying land on a large scale across the country? Know - What is the preparation

Maruti Suzuki is preparing to maintain its strong hold in the domestic car market. The company recently said in its annual report t buthat the most important component of network success is that land is the most important resource for its rapid spread.

The country's leading auto company Maruti Suzuki has bought 118 land parcels in the last 4 years, which will cost around Rs 1500 crore. These parcels will be given by Maruti Suzuki to its dealer partners for showrooms and service outlets. This is the largest investment by any car manufacturer with the aim of securing dealership support for the future. Maruti Suzuki is preparing to maintain its strong hold in the domestic car market. The company recently said in its annual report that the most important component of network success is that land is the most important resource for its rapid spread.

Maruti Suzuki is buying land and giving it to its network partners at a reasonable rate to reduce the stress of saving on top of its network partners in the era of rising fares. In the financial year 2020, Maruti Suzuki sold a total of 1.43 million units, which is about 18% less than its FY 2019 sales of 1.75 million units. Despite this, Maruti Suzuki occupies about half of India's passenger vehicle market. According to an estimate by Suzuki Motor Corporation, by 2030, 10 million units of new passenger vehicles will start selling in India every year. SMC expects to dominate its 50% market share by 2030. This means that in that period Maruti Suzuki will start selling 5 million units per year.

Maruti Suzuki has so far purchased 118 land parcels for sales outlets and service workshops. Currently, pilot projects are currently underway at 6 of these locations. The company is yet to identify the areas where showrooms and service centers will be built. Maruti Suzuki also stated in the annual report that in FY 2020, the company intends to complete their pre-construction whereas in FY 2021 they intend to start pilot projects. Based on the results of these pilot projects, sales and service facilities will start to be built on the remaining land parcels.

Maruti said that the company will also create smaller workshops with more focus in future so that service touchpoints can be increased. The company has 3086 sales network centers in 2020, out of which 2390 are Arena Outlets, 375 Nexa Outlets and 321 Commercial Weeks Outlets. Suzuki plans to include 30 models in its India portfolio by 2030, including electric vehicles. Although it currently has 16 models of the company, which do not have an electric car but there are two commercial vehicles.

Maruti Suzuki Cars are the most affordable & efficient cars in Bharat. Even in sales though Maruti Suzuki Swift once achieved 10million sales only is some years of their sell.