Already working at high capacity, Maruti Suzuki’s two manufacturing plants in Gurgaon and Manesar will need to increase production in order to meet the rise in demand which the manufacturer will face, post the launch of three new cars this year. The three new cars are Vitara Brezza, Ignis and Baleno RS.
Till the new Suzuki plant in Gujarat gears up for production by January 2017, the company will be stepping up production activities at the company’s two existing plants in Gurgaon and Manesar. Maruti Suzuki is set to close FY16 with a capacity of 1.45 million units and intends to add additional 1-1.2 lakh units in the next financial year. This increased output will be met by increased production at both Gurgaon and Manesar plants.
Plans to raise output come at a time when volume growth may be moderated to 8-9% during FY17 which is lower than the double-digit growth estimated by Maruti Suzuki. The Maruti plant in Gurgaon has annual production capacity of 700,000 units while the company’s Manesar plant has the ability to produce 800,000 units in two shifts and three production facilities.
The new manufacturing unit in Gujarat with Suzuki Motor Gujarat as contract manufacturer will have an initial capacity of 250,000 units per annum. The plant is set for operations in 2017 but the company may still face capacity constraints till such time the plant is fully operational.