Maruti Suzuki Goes Bullish on Rural India

As the auto markets are slowly reviving back to life, Indian auto major Maruti Suzuki India wants to strengthen its distribution network on rural areas of the country. It is also increasing the number of stockyards in different parts of the country in order to reduce delivery period. It is also increasing its sales force by nearly 1,000 persons to boost marketing initiatives.

Talking to media persons about it, Maruti Suzuki India managing director Mr. Shinzo Nakanishi said that fresh investments would be made in areas of research and development and marketing. The new investments would begin soon after the completion of Rs 9,000 Crore by the end of 2010.

Their priority is to set up stockyard for both finished products and spare parts at regional levels so as to reduce transportation cost, time and delivery time. The firm would start with stockyards in south India and the first such facility would come up in the middle of this year. However, he did not give elaborate details on the time frame, the total investments, location and size of the stockyards.

In a deviation from its earlier stand of getting land with government approval, Maruti Suzuki is now approaching land owners directly for negotiations to acquire lands.

The company is also increasing it strength of sales force to push sales in rural areas. Currently, the company has a 2,500 rural dealership sales executives. MSI would add 1,000 dealer sales executives in 680 outlets across the country. Nearly 15,000 people are already employed at these outlets. The company would also increase numbers of car dealers too.