More cars, less wait: Maruti Suzuki to add to its production capacity
Maruti Suzuki has received in-principle board approval to add to its production capacity in the country by up to one million or 10 lakh units per year. Maruti Suzuki also reported a higher-than-expected quarterly profit, powered primarily by a refreshed model lineup and positive sentiment in the passenger vehicle segment overall since Covid-19 lockdown restrictions began to be eased.
Maruti Suzuki is the country's largest car maker and has manufacturing facilities in Manesar and Gurugram, apart from an R&D center in Rohtak. There is a new manufacturing facility that is coming in Sonipat. In an exchange filing on Wednesday, the company informed it is now aiming to double its annual production capacity. At present, the company has a production capability to roll out 1.3 million units and is at full capacity.
The company has been on a product-launch spree since early 2022 when Covid-related restrictions began easing off. Popular models like Baleno, Alto K10, Brezza, Ertiga and XL6 have been updated. New models like Grand Vitara and Fronx have been launched with a big-time focus on SUV body type. The company will next drive out Jimny and plans to lead the SUV segment by end 2023. There is also a focus on expanding the CNG portfolio with as many as 14 models now also having the company-fitted kit. But while demand for most Maruti cars has increased, the wait time has also risen - stretching to several months for some of the models. The problem of semiconductor shortage, however, remains and is likely to have an impact on the number of cars manufactured, regardless of production capacity.
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Exports also remain in focus with MSIL Chairman RC Bharagava predicting the figures to touch around 750,000 by end of the ongoing decade.
Recently, the company announced its entire car model lineup has now been upgraded to meet the updated BS 6 Phase II emission norms. Electronic Stability Control (ESC) system has also been added to the safety highlights of each of the models offered under the Arena as well as Nexa retail chain.