Maruti Suzuki may expand production capacity of Manesar plant by 1 lakh units

7 Nov 2022 , 08:44 AM

To meet the increased demand before its Sonipat facility opens its doors in 2025, Maruti Suzuki India (MSI) may raise the manufacturing capacity of its Manesar factory by one lakh units, a senior company official told ET.

To meet the growing demand for its products, the largest automaker in the nation may potentially consider increasing the manufacturing facility’s production capacity in Gurugram.

The combined annual production capacity of MSI’s Manesar and Gurugram plants is 15 lakh units. Additionally, it has access to 7.5 lakh units through Gujarat-based Suzuki Motor, the company’s parent.

The business has already started working at the new site in Haryana’s Kharkhoda. By 2025, the factory is anticipated to be operational, with a first-phase installed production capacity of 2.5 lakh units.

He also said that Kharkhoda’s extra capacity of one lakh units per year could arrive by April 2024.

Current MSI models include the Ertiga, XL6, and Eeco, which are produced in the Gurugram plant; the Alto, S-Presso, Celerio, Brezza, and Dzire, which are produced in the Manesar facility.

He stated of the forthcoming facility in Sonipat that “our first plant (first phase) should be commissioned by the first quarter of calendar 2025, and I think we already have to start thinking about a second plant if demand growth in India continues.”

The first phase of the Sonipat project will require an investment from the firm of Rs11,000 crore. MSI is to spend more than Rs7,000 crore this year on a number of projects, including the building of a new facility in Haryana and the introduction of new models.

Due to the company’s success with the Grand Vitara and Brezza, the number of vehicles on its list of pending customer orders reached 4.12 lakh at the end of September.

The company’s order backlog would be reduced with an increase in production. The automaker is attempting to strengthen its position in the quickly growing SUV class despite having a high market share in the hatchback, sedan, and multi-purpose vehicle segments.

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