Maruti bets on demand revival; set to start production at Gujarat plant in early 2017

Betting big on demand revival boosted by consumption-led recovery, Maruti Suzuki India may advance the commissioning date for the second line of its Gujarat unit

By: | Updated: August 30, 2016 1:50 PM
Betting big on demand revival boosted by consumption-led recovery, Maruti Suzuki India may advance the commissioning date for the second line of its Gujarat unit (Reuters) Betting big on demand revival boosted by consumption-led recovery, Maruti Suzuki India may advance the commissioning date for the second line of its Gujarat unit (Reuters)

Betting big on demand revival boosted by consumption-led recovery, Maruti Suzuki India may advance the commissioning date for the second line of its Gujarat unit. RC Bhargava, Chairman of Maruti Suzuki has said, "The production from the first line at the Gujarat plant will start in February 2017. We are confident of maintaining double-digit growth in the current financial year." According to Bhargava, there is a pick up in the rural sales as a result of good monsoon. "The effects of a good monsoon will be seen in 2-3 months," he said.

The auto major is currently facing a capacity constraint and the commissioning of its new plant in Gujarat, Maruti would be able to ease off some of the pressure that it is feeling. The company has a manufacturing capacity of 15 lakh units in its two plants in Manesar and Gurgaon. The Gujarat plant will boast of an annual production capacity of 2.5 lakh units in the first phase. This could subsequently be ramped up to 15 lakh units going ahead.

Maruti also has plans to bring more products with hybrid technology over the next few years. This is in the backdrop of increasing concerns of safeguarding environment in India. Currently, the company offers mild hybrid technology in its premium sedan Ciaz and MPV Ertiga. MSI Manging Director and CEO Kenichi Ayukawa recently said, "We were the first ones to launch mild hybrid products with reasonably good volumes. This process of hybridisation will be expanded further in the next few years."

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