To cater its enhanced demand, MSI (Maruti Suzuki India) may expand the Manesar plant.
According to a senior company official, Maruti Suzuki India (MSI) may increase the production capacity of its Manesar plant by one lakh units to cater to the enhanced demand before its Sonipat facility, which commences operations in 2025.
In addition to this, the country’s largest carmaker may also look to enlarge the production capacity at its Gurugram-based manufacturing facility to meet the rising demands for its products.
The company’s combined annual manufacturing capacity at its Manesar and Gurugram factories is 15 lakh units. Moreover, it has access to 7.5 lakh units from Gujarat-based Suzuki Motor, the company’s parent.
It has already begun the work at the new facility in Kharkhoda in Harayana. By 2025, the plant is expected to be operational with an installed production capacity of 2.5 lakh units in the first phase.
MSI Executive Director Rahul Bharti in an analyst call stated that as of now the company have about 22.5 lakh capacity in Harayana including Gujarat…And in the upcoming time, the company is in the process of working on the Kharkhoda plant, which will be up and operating in the year 2025. And if required, he thinks that the company might have to add about one lakh capacity on a short-term basis in Manesar to meet intermediate demand.
He also added that the additional one lakh unit per annum capacity at Manesar may come by April 2024 and Kharkhoda in the subsequent year.
Models such as Ertiga, XL6 and Eeco currently roll out from the Gurugram plant whereas models like Alto, S-Presso, Celerio, Brezza and Dzire are from the Manesar facility.
Bharti replied to the query by stating that the company is not looking for any kind of reduction in Gurugram. At least in the short term, the company might have to increase its production in Gurugram, when asked if MSI is looking to increase capacity at the Manesar plant to reduce the manufacturing footprint at the Gurugram facility.
In addition to this, regarding the upcoming plant at Kharkhoda in Sonipat, he stated that the company’s first plant should be commissioned by the first quarter of calendar 2025. And he thinks that the company have to start thinking about the second plant if the demand growth continues in India.
MSI plans to invest Rs 11,000 crore in the first phase of the Sonipat facility. It also plans to invest over Rs 7,000 crore this year on various initiatives inclusive of the construction work of the new plant in Haryana and new model launches.
Having achieved success with both Brezza and Grand Vitara, the company’s pending customer order has raised to about 4.12 lakh units at the end of September.
The company can reduce the backlog with the help of an increase in production. With a strong position in the hatchback, Sedan and multi-purpose vehicle segments, currently, the automaker is looking to consolidate its position in the fast-selling SUV segment.