Maruti_plant
Suzuki India  produce 1,000,000 unit a year, plans to add 250,000 unit a year by 2012
 
 Suzuki Motor Corp., Japan’s second- largest minicar maker, plans to double production of engines in India to 1 million units a year as the company expands in its biggest overseas market.

The automaker will invest about 25 billion yen ($277 million) to increase the production capacity of its K-series engines, Chairman Osamu Suzuki said in Manesar, near New Delhi, today. The company is spending a similar amount to expand research facilities in the nation, Suzuki said.This expendtion will increase Engine production at Manesar plant from 300,000 unit a year to 550,000 unit a year by 2012

Maruti Suzuki India Ltd., a unit of Suzuki and the nation’s biggest carmaker, also spending 17 billion rupees ($373 million) to increase capacity by 250,000 cars at the Manesar factory. Competition has intensified for the New Delhi-based unit after Volkswagen AG, Ford Motor Co. and General Motor

Maruti will invest Rs 1,700 crore at Manesar to increase the annual output of car to 5,50,000 units from the current 3,00,000 units by 2012

“The new facilities are scheduled to start by 2012. As a result, Maruti will have an annual production capacity of 1.25 million units — 700,000 from Gurgaon and 550,000 from Manesar,” Suzuki had said in a statement.

The company would like to double production over the next 6-7 years. For this, we will have to grow at a compounded annual growth rate of 10-12 per cent. But it will all depend on the overall economic growth of the country and many other economic variables,” chairman R.C. Bhargava told The Telegraph.

Analysts say Maruti’s target of doubling output can be achieved, though the competition has become very stiff with the entry of new players.

“The market is expanding exponentially. It is very much an achievable target. The company will have to maintain its sales and cost competitiveness,” said auto analyst Murad Ali Baig.

On investments for the next year, Bhargava said, “It will include Rs 1,700 crore for capacity expansion at Manesar, another Rs 1,000-1,500 crore for development of our R&D centre at Rohtak and launches.”
The company enjoys over 54 per cent share of the domestic car market with a presence in over 450 towns and cities through a network of 681 sales outlets.

India’s vehicle sales may reach 3 million units annually by 2015, helped by new models such as Tata Motors Ltd.’s Nano, the world’s cheapest car, and higher incomes among a middle class of about 50 million people, according to a 2006 government forecast.

Some Facts about Maruti (source team-bhp.com)

• First in India to provide ACC in a sub 6L car.
• First in India to provide Rear Fog Lamps.
• First in India to provide ABS & Electric ORVM in a sub 4L car.
• First company in India to mass-produce and sell more than a million cars.
• Only Car Manufacturer in India to have a Driving School as a part of its Corporate Social Responsibility.
• First and only car manufacturer in India to launch a Certified Used car division which is still running successfully since 2002. It still is the biggest in Organized Sector.
• First Car Manufacturer in India to have a tie-up with Insurance Companies and launch its own Car Insurance. Because of this, you actually get Real Cash-less facility at any Maruti Centre across India.
• First Car Manufacturer in India to associate with Motorsports and that too for all segments of the society be it women, families, motorsport enthusiasts, an amateur, professional or just for fun.
• Santro & WagonR were the first and the only 2 Tall Boy designs launched, While Santro has now almost faded in the history with only 2 models under production, WagonR is still one of the best selling Hatchbacks for Maruti, with continous Improvements and changes to its design. It is still one of the largest selling Hatches even after 10 years of launch. Highly practical.
• In 2001-02, Maruti’s market share in Passenger cars was 59.6%, although it has reduced to 55% in 2008-09 but still Pretty Healthy considering the number of manufacturers who have opened shop in India.
• It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by JD Power Asia Pacific. None of the car Manufacturers were able to grasp this from Maruti even once in last 10 years.

 

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