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Maruti plans to add 1,500 service outlets by 2015

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The country's largest car maker Maruti Suzuki India (MSI) is planning to ramp up its service centres by a massive 1,500 outlets by 2015 in line with its expansion of production capacity to over 17 lakh units annually.

This enhancement is expected to result in additional employment of about 22,000 people by the service network operators.

"We expect service load at our network multiply manifold, as Maruti Suzuki scales up capacity to 1.7 million units in coming years," MSI Executive Officer (Service) Pankaj Narula said.

The company currently has 2,784 service points and it is planning to increase it to over 4,200 outlets in the next five years, a jump of more than 50 per cent.

Last month, MSI had announced to invest about Rs 1,925 crore to set up a third plant with an installed capacity of 2.5 lakh units inside the Manesar facility. Currently, it is investing Rs 1,700 crore on a second plant at Manesar, having an annual capacity of 2.5 lakh units.

With completion of both the new units, the total output from MSI will be at 17.5 lakh units.

As per the company's network expansion plan, MSI will add the new outlets in over 1,300 cities and small towns with an aim to provide car servicing facility for every 25 km across the country.

MSI's service network currently handles a load of 11.8 lakh cars every month and it is expecting it to grow to 14.5-15.0 lakh units by 2015.

Subsequently, the current strength of about 33,000 employees at the service outlets will go up to 55,000 in order to meet the additional demand.

Speaking about investments that will be required to pump in by the service partners, Narula said: "As per our assessment, a dealer workshop of 10 bays will involve an investment in the range between Rs 70 lakh and Rs 75 lakh. These figures do not include cost of land and building."

Likewise, a non-dealer Maruti Authorised Service Station (MASS) with 5 bays will need Rs 12-15 lakh, which does not include land and building costs, he added.

Accordingly, it is estimated that a total of about Rs 250 crore will be done by the business associate to set up the new 1,500 service networks.