Maruti to enhance its production capacity at its Manesar plant

Maruti Suzuki India (MSI), India's top car manufacturer is planning to enhance its manufacturing capacity at company's Manesar plant. The company board could take up a proposal today to increase its capacity to 1.3 million units in two years. Maruti Suzuki India has a 50% market share in Indian automobile market and to maintain this market share company is looking to enhance its manufacturing capacity as some of the company's most popular models like Maruti Swift Dzire registering a record demand backlog.

It is expected that Maruti could invest up to Rs 1,800 crore after getting approval from its board to expand capacity. If Maruti's board approves this investment then it will be company's second-largest investment in this fiscal as company has already announced the investment of 2,500-crore in upcoming research development centre at Rohtak in Haryana.

Maruti currently manufactures one million cars annually and according to the market analysts the increase in production will be done in phases. According to Maruti MD S Nakanishi the company is targeting an annual capacity increase of 3 lakh units as the company is facing mounting export orders for its small cars. The company is targeting to export 1.3 lakh units in this fiscal. Mr Nakanishi added that If the Indian passenger vehicle market grew to 30 lakh cars by 2016 from the current 18 lakh, Maruti would have to sell at least 15 lakh cars. Currently Maruti produce 7 lakh cars a year at its Gurgaon plant.

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