Will invest about Rs. 1,700 crore for expansion at Manesar plant

India's largest carmaker Maruti Suzuki India (MSIL) on Tuesday created a record of sorts by reaching the landmark of producing 10-lakh cars in a year to become the first Indian automobile company to join the million (10 lakh) club.

With Suzuki Motor Corporation Chairman and CEO Osamu Suzuki flagging off a red Swift hatchback from the company's Manesar (Haryana) plant, MSIL joined the list of global car majors such as Toyota, Honda, Ford, Volkswagen and General Motors.

Foundation

“In 1982, we came and collaborated with the Government led by (then Prime Minister) Indira Gandhi...it has been a long journey since then. Cumulatively, we have produced over 88 lakh cars in India,” Mr. Suzuki said. He also announced major investments by MSIL to set up a research and design centre at Rohtak (Haryana) and doubling capacity of the Gurgaon plant to produce five lakh ‘K' series engines annually.

Maruti Suzuki is now in the process of expanding the capacity at Manesar facility. Mr. Suzuki laid the foundation for increasing the capacity at Manesar plant from three lakh units to 5.5 lakh units annually over the next two years. The company will invest about Rs. 1,700 crore for this expansion. Its present production facilities are located at Gurgaon, with a capacity of seven lakh units and Manesar, with capacity of three lakh units.

“At present, all world-class manufacturers are entering India and we are facing severe competition here. Today, we achieved one million (10 lakh) unit but to achieve two million (20 lakh) production in a year will be a tough journey,” Mr. Suzuki said. At present, around 50 per cent of global vehicle production of Japan's Suzuki is contributed by MSIL.

The first ‘Maruti 800' was rolled-out from Maruti's Gurgaon plant on December 14, 1983.

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