With its existing production facilities at Manesar and Gurgaon heading towards attaining optimum capacity utilization, Maruti Suzuki advanced the commissioning of its upcoming Gujarat plant by 3-6 months. This was revealed by the company in their annual report.
The plant’s construction is almost over, with Maruti Suzuki getting ready to roll out the first car in February 2017, instead of the earlier planned date of May 2017. The preponement is being done so as to meet the rise in demand for new Maruti Suzuki cars, which are currently offered with a high waiting period. This new plant will be owned by Suzuki Motors, and not Maruti Suzuki India. Maruti Suzuki will buy cars from Suzuki.
Unlike the existing production units, the Gujarat plant will be wholly owned by Suzuki Motor Coporation of Japan which will sell fully built cars to MSIL on cost plus basis. MSIL will then be handling the marketing, sales and after sales service operations. Such a move was being opposed by a section of the company’s share holders who argue that MSIL would eventually be reduced to a mere marketing and sales entity but the automaker is confident about moving ahead with the strategy. But that is all sorted now.
RC Bhargava, Chairman, Maruti Suzuki also apologized to their consumers for the waiting periods. He has promised that the production will soon be increased to reduce waiting periods. In spite of a challenging market, Mr. Bhargava is once again aiming at posting double-digit growth for the new fiscal.
Maruti Baleno premium hatchback which was launched in 2015, is likely to be the first product to be produced at the new facility. The Gujarat plant’s proximity to ports would make it an export hub. A portion of production volume of next gen Swift and Swift Dzire are also expected to be contributed by the upcoming infrastructure. By 31st March 2017, this new plant is expected to produce 10,000 cars.
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