Aimed at further consolidating its leadership position in the fast growing Indian car market, Maruti Suzuki India Ltd. (MSIL) has decided to set up a third plant at Manesar (Gurgaon), which will entail Rs.1,925-crore investment and have an installed capacity of 2.50-lakh units. India's largest carmaker is also mulling upon an ambitious modernisation plan for its Gurgaon facility, which comprises three assembly lines with a total installed capacity of 8.50-lakh units.

Investment

“We have decided to set up a third plant at Manesar that will be constructed along with the upcoming second plant at the same site.

“This is being done to meet the growing demand for our products in India and also support exports…but our focus will continue to be the Indian market which is growing at a very fast rate,” Japan's Suzuki Motor Corporation Chairman and CEO O. Suzuki told The Hindu after MSIL's annual meeting here on Tuesday. SMC is MSIL's parent company that holds 54 per cent stake in the Indian carmaker.

“Between 2010 and 2013, we will be investing Rs.6,125 crore — Rs.2,500 crore on engine and research facility at Rohtak, Rs.1,700 crore on second plant at Manesar and now Rs.1,925 crore on third plant,” Mr. Suzuki pointed out. While MSIL's upcoming second plant with a capacity of 2.50-lakh units is likely to start production by January 2012, the third plant with a similar capacity is likely to become operational by early 2013. So, by 2013, MSIL's total capacity will cross 17 lakh units. At present, MSIL produces 8.50-lakh units at its Gurgaon facility and 3.50-lakh units at the first plant at Manesar. Pointing out that MSIL has 12 models, Mr. Suzuki said they were also thinking of increasing the number of models in India.