Maruti to buy land for dealers in India. It is expected to buy land bank with its INR 9000 crore fund in cities and towns where it aims to develop its network. At present Maruti has 1300 sales outlets across the country.
“The company has mega expansion plans to double its outlets over the next five years as it aims to increase annual sales to 2 million units against the 1.15 million vehicles sold in 2013-14.” said Ajay Seth, Chief Financial Officer
The Network expansion plan is expected to be aimed at tier 1, tier 2 and tier 3 cities. The company plans to create land bank and help its channel partners to reduce their real estate burden. Prices of land have increased impacting the profitability of dealerships and Maruti is focused to reduce their burden by buying land. Increase in Land costs over time and rentals will help the company to recover the investments.