Suzuki plans to invest as much as $970.97 million in its second vehicle production line at its new plant in Gujarat.
Suzuki plans to invest as much as $970.97 million in its second vehicle production line at its new plant in Gujarat. According to RC Bhargava, the Chairman of Maruti Suzuki India, sales from Gujarat plant will start by February 2017. The second line, in which the money is being invested, will begin operations by early 2019. Its volume of production will reportedly be the same as the first line. The new factory in Gujarat will manufacture models such as the Baleno. Additionally, Maruti is also considering cars for export from this plant, sicne Gujarat is a major port.
Earlier this year Bhargava said, “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 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.
Meanwhile, the auto major is gearing up for the launch of its new model, the Maruti Ignis. The car is expected to be launched with the 1.0 litre Boosterjet three-cylinder, turbocharged petrol engine, developing around 110 hp. It is still unclear if the Ignis will be launched with a diesel engine as well or will it get one later. Given the known specifications of the Maruti Suzuki Ignis and its expected positioning, the Ignis is likely to be priced between Rs 4.9 to 7.25 lakh.