Maruti Suzuki may advance commissioning of Guj plant

The Dollar Business Bureau

Owing to the increased demand for its products, India’s largest car manufacturer Maruti Suzuki India Ltd (MSI) may proceed commissioning of the phase II of capacity expansion at its plant in Gujarat. 

The phase I of the plant, which has a capacity of producing 2.5 lakh units, is likely to come into operations by early 2017.

The phase II, with the same production capacity, may become operational by 2019 as the company is facing long period of waiting for products such as Baleno and Vitara Brezza.

“We may look at advancing the second manufacturing phase in Gujarat,” R S Bhargava, Chairman of MSI told journalists on the sidelines of 56th Annual Session of ACMA held in New Delhi. 

The Gujarat facility will have a capacity to produce 2.5 lakh units in each phase (I, II and III). Going ahead, the capacity could be enhanced to 15 lakh units.

Presently, the production capacity of MSI from its two facilities at Manesar and Gurgaon is around 15 lakh units. 

In order to achieve its set goal of producing and selling more than 20 lakh units by the year 2020, Maruti will require more capacity. 

On the expectations of sale in the coming festive season, Bhargava said that the company expects a growth of over 10 percent sales during this year.

He further said that the effect of good monsoon would be seen after 3-4 months when the crop is sold in the rural areas.