The country's largest carmaker Maruti Suzuki India is understood to be planning to ramp up its output by about 10 per cent to produce over 1,10,000 units every month from October.
With this level, the company's annual production will cross 13 lakh units in 2011-12, compared to about 12 lakh units planned for this fiscal.
According to industry sources, Maruti Suzuki India (MSI) has started work for increasing its production from last month and it plans to scale up the same to beyond 1,10,000 units a month from the current of about 1,00,000 units level.
"Many of their cars are having long waiting periods. In order to speed up the delivery, MSI is ramping the capacity in both Gurgaon and Manesar plants," a source said.
The company's hatchback Swift and Ritz do have 3-4 months and 1-2 months of waiting period.
While customers are queueing for 4-5 months to own the sedan DZiRE, MSI is taking about 5 months to deliver the multi-purpose vehicle Eeco.
"If the market remains very buoyant and the company keeps producing at current level, MSI's annual output will surely cross 1,10,000 units in next fiscal," the source said. 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 Manesar can produce 3.5 lakh units annually, with the overall capacity totaling to 12 lakh units per year.
When contacted, a MSI spokesperson said: "We have been working on de-bottlenecking and streamlining our production operations to induce higher productivity levels. Some of the specific initiatives include relocating and shuffling production between Gurgaon and Manesar."
Asked about investments that the company has put in to ramp up its capacity, the official said: "It is the approach towards getting more output that matters. Overall investment for productivity improvement was around Rs 120 crore (Rs 1.2 billion), which was announced in 2008."
According to figures released by Society of Indian Automobile Manufacturers, production of the company during the April-August period has jumped 24.79 per cent to 4,92,562 units from 3,94,724 units in the year-ago period.
Last week, the company announced to invest 35 billion yen (Rs 1,925 crore) to set up a third plant with an installed capacity of 2.5 lakh units inside the Manesar facility.
Currently, MSI is investing Rs 1,700 crore (Rs 17 billion) on a second plant at Manesar, having an annual capacity of 2,50,000 units. With completion of both the new units, the total output from MSI will be at 17.5 lakh units. The company has reported its highest ever monthly sales at 1,04,791 units in August, registering a 23.56 per cent jump over the year-ago period.
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