Maruti Suzuki to produce one million cars this fiscal year and expand plant

Suzuki Motor Corporation’s Indian subsidiary, Maruti Suzuki, produced 966,069 cars from January to December 2009 (up 27% from the year before). Maruti Suzuki now forecasts production of 1,027 thousand units for the fiscal year through 31 March 2010. It will be the first time for Maruti Suzuki to achieve production of more than one million units on either a calendar-year basis or fiscal-year basis.

In expectation of continued growth in the Indian car market, Maruti Suzuki will invest 17 billion rupees (about ¥33 billion) in new facilities at its Manesar plant to increase the plant’s annual production capacity to 550 thousand units from the current 300 thousand units. The new facilities are scheduled to start operating in spring 2012. As a result, Maruti Suzuki will have annual production capacity of 1.25 million units (700 thousand units at its Gurgaon plant; 550 thousand units at its Manesar plant).

Suzuki car production in India began with the Maruti 800 in 1983. The Indian car market was no bigger than 100 thousand units per year at that time. Owing to economic deregulation initiated in 1991, the market began growing rapidly in the mid-1990s. In 2009, the Indian market for passenger cars exceeded 1.5 million units. Maruti Suzuki has a 55% market share.