In a move, which would help Maruti Udyog (MUL), further consolidate its position, the company recently inaugurated its fourth car assembly plant in Manesar. The commencement of the fourth unit is in line with company's strategy of reaching one million target in annual sales by 2010. With the inauguration of the new plant, MUL will have an overall total capacity of 7.3 lakh units annually from its Gurgaon and Manesar plants.
Osamu Suzuki, chairman, Suzuki Motor Corporation (SMC) was in India to inaugurate the fourth car assembly plant as well as a diesel engine and transmission plant and SMC's two-wheeler plant in Gurgaon established under the aegis of the Suzuki Motorcycle India. The transmission unit has been set up under a joint venture of SMC and MUL called Suzuki Powertrain India (SPIL). 'We have invested about 100 billion yen so far. Going forward, we are investing an additional 200 billion yen up to 2010,' said Suzuki, at the function.
Of the total 300 billion yen (Rs 10,800 crore), almost one third investment has already been made. Maruti has already announced an investment of 250 billion worth (Rs 9,000 crore). 'This would be utilised in ramping the capacities, upgradation of the existing models and launch of new ones in next three-four years,' said Jagdish Khattar, Managing Director, MUL.
The car assembly facility will have a capacity of 100,000 cars per year. This would be scaled up to 300,000 cars per year. A total investment of Rs 2,500 crore will be made in this car plant by 2010 in a phased manner.
The company's premium compact car, Swift, is being manufactured at this plant and going forward it would also be used to manufacture a new export model, which is expected to be launched in 2008-09.