Maruti to up its production by 10 per cent


The country's largest car-maker, Maruti Suzuki India, today said it will ramp up production by about 10 per cent to nearly 1.1 lakh units every month from October, taking its annual output to 13 lakh units in 2011-12.

The company expects to notch up its highest-ever monthly sales in September, with a growth of 32-33 per cent compared to the same month last year. In the entire 2010-11 fiscal, it aims to sell 12 lakh units.

"This year, we are producing about one lakh cars per month. From October, this will be further increased to produce about 1.08 to 1.1 lakh units a month," Maruti Suzuki India (MSI) Chairman R C Bhargava told reporters here.   

The company was producing around 84,000 cars during the corresponding period last year and the increase would be about 25,000 cars, he added.   

Bhargava said that with an output level of 1.1 lakh units per month from October, the company's annual production will cross 13 lakh units in 2011-12, compared to about 12 lakh units in this fiscal.   

Talking about sales, he said: "MSI's growth till last month was about 27 per cent. This month, I believe it will be something between 32-33 per cent."   

"September will be a record month," he added.   

MSI reported its highest ever monthly sales of 1,04,791 units in August, translating into a 23.56 per cent jump over the year-ago period.   

"For this entire fiscal, we should sell about 12 lakh cars," Bhargava said, adding that the company sold about 10.2 lakh units in the last fiscal.   

When asked about the waiting period for MSI cars, Bhargava said: "We continue to have waiting list. Barring M 800, A-Star and Estilo, all cars have some amount of waiting... DZiRE has the longest waiting period."   

The company's hatchbacks, Swift and Ritz, have a 3-4 month and 1-2 month waiting period, respectively, while customers are willing to wait for 4-5 months to own a DZiRE sedan. MSI takes about 5 months to deliver multi-purpose vehicle Eeco to buyers.   

At present, MSI, which is 54.2 per cent owned by Suzuki, has an annual capacity of 8.5 lakh units at its Gurgaon plant, while its Manesar unit can produce 3.5 lakh units annually, with the overall capacity totaling 12 lakh units per year.   

According to figures released by the Society of Indian Automobile Manufacturers, production of the company during the April-August period jumped 24.79 per cent to 4,92,562 units from 3,94,724 units in the year-ago period.   

The company recently announced a 35 billion yen (Rs 1,925 crore) investment to set up a third plant with an installed capacity of 2.5 lakh units inside the Manesar facility. At present, MSI is investing Rs 1,700 crore on a second plant at Manesar with an annual capacity of 2.5 lakh units.