NEW DELHI, April 4 -- Maruti Suzuki India Ltd plans to tap its cash reserves of more than Rs30,000 crore to absorb the bulk of capital costs of its dealers as the nation's largest carmaker moves to maintain dealer profitability, crucial for preserving its pole position in the world's fastest growing major car market.

Some of Maruti's new showrooms would be owned by the firm and leased out to dealer partners, three people aware of the development said, requesting anonymity.

The auto maker would incur the capital expenditure for establishing them, while the dealers would bear the operational expenses, the people said.

Margins at automobile dealers across India have been squeezed as modern cars need less frequent repairs and servicing.

The...