Maruti Suzuki is on an expansion bid of the passenger vehicle production at its Manesar factory with targeted 200000 units in the next two years. This factory, company’s second, is in current production of Swift, A-Star, and the Ritz, is able to produce 300000 units. With the shift now doubled, the company can proudce 500000 units as Rs.1500 crore is the cost for installing a unit with this production capacity.
The intensification of this Manesar factory is in the wake of closure of its Plant-1 at Gurgaon factory, which has an annual production capacity of 160000 vehicle units. Among the three plants located in this factory, Maruti 800, Wagon r, Omni and the Versa, K-series engines are produced. The net amount of vehciles produced at this factory will be 700000 units.
The factory, 40 years old, at this unit posssess utilities of obsolete and the space will be occupied for engine assembling, machning and other works. With the current production capacity of one million cars anually, the company is looking for the increased capacity of 1.2 million cars.