The Hindu Business Line : Maruti to decide on expansion at Manesar in the next few days

Mr R.C. Bhargava, Chairman, said the company would need to increase capacity to meet the growing demand for its cars. Capacity at its Manesar facility could be increased by 1,00,000 vehicles, Mr Bhargava told reporters on the sidelines of the company’s AGM here on Wednesday.

The Chairman of Suzuki Motor Corp, Mr Osamu Suzuki, attended the AGM. Mr Suzuki is on a two-day visit to India and investment plans in Maruti Suzuki are expected to be decided during his stay.

The country’s largest automaker sold 84,808 cars in August and will look at expansion to meet rising demand for its hatchbacks and sedans.

Maruti aims to export 130,000 cars in the financial year ending March 2010 and raise that number to over 150,000 in 2010-11. Selling nearly a million units a year, the company would face a constraint if production is increased.

Mr Bhargava said Maruti would duplicate the facility at Manesar in stages. The plant produces 3,00,000 cars and 2,00,000 diesel engines each year. The company also has a plant at Gurgaon with a capacity of 7,00,000 cars a year, but the unit allows no scope for expansion.

Maruti expects to come out even stronger after the slowdown. “The recession has taught us many lessons and also confirmed the validity of our strategies.… We are debt-free and have a healthy cash balance. We have financed all growth from internal resources. Our continuous efforts at cost cutting and improving productivity, even in the good times, helped us in making reasonable profits despite the impact of higher commodity prices and a weaker rupee,” Mr Bhargava told shareholders.

The company also appealed to the Government for tighter norms in issuing driving licence. “India’s record of road safety is despicable” and its (road safety’s) importance was being underestimated, said Mr Bhargava. India had 80 times more road fatalities than Japan. Time-bound plans by State Governments, attitudinal training and medical fitness or vision fitness have also been suggested.

Maruti Suzuki’s Institute of Driving Training and Research and Maruti Driving Schools offer courses. As part of its National Road Safety Mission programme, it will train five lakh people in safe driving over three years, said the company.

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Maruti ramps up capacity at Manesar
Foundation laid for new Maruti plant

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