Maruti suffering from long waiting periods
The market leader in the Indian passenger cars, Maruti Suzuki is having a tough time in fulfilling the demand of the Indian consumer.
In fact, the company has recently said that close to 15-20% of its monthly sales are the backlogs on its books. It is to be mentioned here that the bigger problem is of supply constraints and the company has less capacity when compared to its demand in the Indian market.
The MD of the company, Shinzo Nakanishi has recently said that it is not a very good situation for the company.
Moreover, Mayank Pareek, Managing Executive Officer - Marketing & sales, Maruti Suzuki India recently said at the launch of the new version of Alto that the automotive industry was growing at a CAGR of 12% but the first half of 2010 has seen a growth of 30% and the company was not ready for such kind of a demand in the Indian market.
In fact, the MD also agreed to the fact by saying that the company misread the growth potential of the Indian market and is now trying to speed up its expansion plan for adding 2.5 lakh unit capacity to its one million production capacity.