Maruti to expand production capacity to 1 million a year

Maruti to expand production capacity to 1 million a year

Maruti is the dominating player in the auto market in India and they are still not satisfied enough. The company has a collaboration with Suzuki and makes majority of the cars, which are sold here in the domestic market. However, growing competition means that they have to remain on their toes all the time and the company now has big plans to expand their operations in India to remain competitive and retain their edge around here.

The company is now aiming to enhance their production capabilities to manufacture around 1 million vehicles per year by 2010. With Honda and Toyota entering the Indian markets, they have to consider the potential threat their upcoming models can present to Maruti Suzuki in their primary segment of small and medium sized cars.

This upgradation is expected to cost the company around $470 million as per a statement from the company’s chairman Shinzo Nakanishi. They recently launched their new car Suzuki Swift that has been a smashing success in the Indian market. They are now planning to launch a diesel version of the same car along with a sedan version to make it a more lucrative brand for the end consumer.

Indian market is expected to grow up to 2 million units in a couple of years and the company aims to supply at least half of them by 2010.

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