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Maruti to Increase Small Car Production

By Motortrend India Staff   |   06 May,2009

Country’s largest car manufacturer Maruti Suzuki will increase its production capacity by additional 2 lakh cars in the next two financial years. This decision is taken by the company to cater to the voluminous small car market.

MSI Managing Director Mr. Shinzo Nakanishi said, “In order to meet the growing demand in the small car market, we have to increase the production from the current 9 lakh cars a year.” But he restrained from disclosing the investment plans for this expansion plan.

Many car manufactures like Mahindra & Mahindra, Honda Motor Corp., and Renault-Nissan has already pulled back from the expansion plans they have earlier announced. Honda's plan for a new plant in Rajasthan is on hold. Renault-Nissan has reduced the production capacity of their JV for small cars to one third. At the same time, MSI's move to increase production shows its confidence and strong focus on the Indian car market.

Around 7.92 lakh cars were sold in India and abroad by MSI in the last fiscal. With their three models, the Alto, WagonR and the Swift dominating the small car segment, Maruti is potentialising on the increasing demand for small cars in India. In the last fiscal, rural markets posted the highest growth. Moreover, Maruti is planning to increase the rural sales force by additional 1000 executives in this year itself.

Currently, Maruti Suzuki is manufacturing cars at its plants in Gurgaon and Manesar. The company has already drawn up their plans for an investment of Rs 9000 Crore for a new engine plant and a R&D centre. Maruti recorded a jump of 15% in sales to 71748 cars in the month of April which is highest in last several months.

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