New Delhi: The country’s largest car maker Maruti Suzuki India is planning to shift production of about three lakh vehicles from Gurgaon to decongest the old plant as soon as the two new units at its Manesar facility come up.
The Gurgaon facility that has three units, currently produces nearly 9.5 lakh units per annum. Once the vehicle output is trimmed at the facility to 6-6.5 lakh units, the company aims to utilise the idle space and workforce to produce more engines and other parts there.
“The Gurgaon facility is very congested and old. We need to reduce some production there. The plan is to reduce the output to 6-6.5 lakh units annually,” Maruti Suzuki India (MSI) chairman R C Bhargava told PTI.
The company had rolled out nearly 9.5 lakh units from Gurgaon in 2010-11 out of a total installed capacity of 8.5 lakh units at three plants in the complex, spread over 300 acres of land. It produces models like Swift, M800, Omni, WagonR, Ritz, Alto, Eeco and Gypsy there.
“We will shift the excess production to Manesar from Gurgaon... From the two new upcoming plants in Manesar that will have a total installed capacity of 5 lakh units, we should be able to do 7 lakh units,” Bhargava said.
At present MSI is setting up two new units inside its Manesar facility at a total investment of Rs 3,625 crore. The existing plant there produced about 3.5 lakh units in 2010-11.
The two new plants in Manesar will have a capacity of 2.5 lakh units annually each. The company is aiming to open the second unit by September-October this year, while the third one is scheduled to be operational in 2012-13.
On by when the company will start trimming its production in Gurgaon, Bhargava said: “We would like to do it as soon as we can do. It will depend on creation of new capacity and market demand.”
Besides vehicles, the Gurgaon facility also produces engines, manufacturing about 7 lakh units per year of the K-Series engines and about 4.5 lakh units per year of F, G and M-Series engines.
Elaborating on how the company plans to utilise the idle space post-decongestioning Gurgaon, Bhargava said: “It will be mainly used for parts production. We will produce more engines and will ramp up the capacity.”
When asked by how much the engine capacity will be increased, he said: “We have not decided it yet, but it will obviously be matched with the level of car production.”
Besides Gurgaon, a separate entity — Suzuki Powertrain India Ltd — produces diesel engines at the Manesar facility. It has a capacity to roll out 3 lakh units per annum.