Maruti Suzuki is targeting a capacity expansion and wants to build more than 2 million cars per year in India. These cars will not only be sold in India but also be exported. The company currently has capacity to build 1.5 million cars at its two Haryana-based factories in Manesar and Gurgaon. The Gujarat factory in Hansalpur now has capacity to built 2.5 lakh cars each year, and the all-new Swift’s production has already started there. The company plans to triple production at Gujarat, to 750,000 cars/year, taking Maruti’s total yearly capacity to 2.25 million cars.
Kenichi Ayukawa, the Managing Director of Maruti confirmed this development with this statement to MoneyControl,
Right now, the capacity of (the) Gujarat plant is 250,000 units per annum. We have started construction of the second plant, which will start operations in 2019. We are also requesting a third plant there and a decision on starting operations will be taken this year. There is a capacity of 750,000 per year for the future in Gujarat. And in the Haryana plant, we have a capacity of 1.5 million. Together, we would have a capacity of 2.25 million. After that, we have consider if we want to have another factory in Gujarat or should we look at some other site.
Maruti recently shifted the production of the Baleno from Gujarat to Manesar as it wanted to produce the all-new, 2018 Swift in Gujarat. The Swift is expected to have high-demand, with Maruti anticipating over 15,000 sales each month. Maruti will also introduce the new Ertiga later this year followed by a more rugged version of the MPV next year. Both versions are likely to be hot sellers. Next year, the all-new WagonR and the Alto will be launched, again big sellers. So, Maruti will have to expand production quickly as it has no less than four high volume cars that’ll be introduced in the market.