With its existing production facilities at Manesar and Gurgaon heading towards attaining optimum capacity utilization in mid-2016, Maruti Suzuki is reported to advance the commissioning of its upcoming Gujarat plant by 3-6 months.
The plant is already under construction with an initial deadline of May 2017. This may have been revised to January 2017 now. Talking at the Annual General Meeting recently, R.C. Bhargava, Chairman, Maruti Suzuki India Ltd., stated that the construction work is on full swing and the company will need the additional capacity in 2017.
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 is 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.
Maruti Baleno premium hatchback which would be launched this year 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.