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Car companies may inject 35k crore to drive up sales

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14th February, 2020 21:58 IST
The new Hyundai Creta gets features like a panoramic sunroof, LED headlamps, BlueLink 1.5, etc. Mumbai | New Delhi: The Indian automobile market may be in a prolonged slump but that's not stopping companies from investing millions of dollars in new products as factories run at less-than-optimum capacity.

Automakers are likely to invest Rs 30,000-35,000 crore, mostly in launching new products as these are a key factor in reviving demand and registering growth. Some of this will go into setting up new capacity as well. Close to two dozen new models will hit the road in the next 12-18 months as passenger vehicle makers hope to generate excitement and revive sentiment.

The top three car makers-Maruti Suzuki, Hyundai Motor India and Mahindra & Mahindra-will invest a total Rs 15,000 crore in the next 12-18 months.

Maruti Suzuki will be introducing BSVI petrol versions of the Vitara Brezza, S Cross and Ertiga along with a few new-generation products. Hyundai will be launching the new-generation Creta, Elite i20 and Verna facelift in 2020. Mahindra & Mahindra plans all-new versions of the Thar, Scorpio and XUV 500 in the next 12-18 months.

"A brand new platform, ground up, costs us between Rs 1,200 crore and Rs 1,500 crore, depending on what is the new installation of capacity," said Mahindra & Mahindra managing director Pawan Goenka.

Read also Great Wall Motors announces $1 billion investment plan at Auto Expo 2020 Lumax Group to invest over $150 million, eyes inorganic opportunities in automotive plastic parts

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