The demand for both export and local market is too good for Maruti to hear about. But the problem with manufacturing and dispatching for export as well as domestic market is on big discussion. The result is Maruti to focus more on domestic market. As such it likes to retain its market share of 52% in the Indian market and is not keen on concentrating on export venture. As a revamping step, the company is setting the ball roll towards increased production in the next two years. This will make the two plants – Gurgaon and Manesar- to be tight scheduled.
These units, according to the MD, (with the installed capacity of making one million units per year) will be expanded to go beyond the limit before this year end. If possible the Gurgaon plant will yield more units by – 70000 to 80000- per year. In all the company foresees the difficulty in meeting the demand for the two years – 2010 -11 and 2011-12. As of now, the plants are running to full capacity with the personnel at manufacturing trying their best. But the company is on the questioning phase of 2012. This will add to the already fallen export figures by 20-30% due to the wiping of the incentive scheme for the scrappage system. Till then, the company had been enjoying 80% net export from the Europe market.
The MD expressed his contented reply about the existing share -145000 to 150000 units-which is expected to be consistent. In FY 2009-10, the company exported 147000 units and what more could satisfy them at a time of production shortage. The actual target for the said period was 2 lakh cars ( 1 lakh for Europe and 1 lakh for other countries). The company has set the growth target -12% – for both this year and for the next year. The Gurgaon plant is upgraded at an investment of Rs130 crore to deliver an additional 70000-80000 units annually. Further, Maruti is investing Rs1700 crore to expand the Manesar plant for delivering 250000 units per year from 2012. The capacity of these two mega plants are – 7lakhs from Gurgaon and 3 lakhs from Manesar per year. In addition Maruti is in an agreement with Nissan for supplying 30000-50000 units of A-Star for Japan to be marketed by Nissan as Pixo. This will come into effect from 2012.