Maruti Udyog Ltd, whose scrip was listed on Bombay Stock Exchange and National Stock Exchange on Wednesday, will continue to focus on small cars and grow its used car business even as its stock witnessed heavy buying interest with combined traded volume crossing the Rs 550-crore (Rs 5.5-billion) mark.
MUL managing director Jagdish Khattar told newspersons after striking the ceremonial gong on BSE "the market for small cars, those priced up to Rs 400,000, is huge in India and with better vehicle finance facilities we can tap the growing demand and maintain our leadership position."
The car penetration rate in India at six per 1000 was lower than those prevailing in neighbouring countries like Pakistan and "to improve our ratio we have to increase car making capacities substantially," he said.
Suzuki Motor Corporation, parent company of MUL, has decided to make India not only an Asian hub, but also a base for research and development for small cars, he said.
On the plans on second hand car business, Khattar said currently the market for such vehicles was unorganised and for MUL this was one of the future areas for growth.
In the developed market, the ratio of used cars to new vehicles was 2:1. MUL has sold 1,000 used Maruti cars in various segments, Khattar added.