Maruti Suzuki Expands Manesar Plant Manufacturing Capacity by 100,000 Units Annually!

Recent Development

Maruti Suzuki India has inaugurated a new vehicle assembly line at its Manesar facility. This addition, integrated into the existing Plant-A among the three manufacturing plants at Manesar, has a production capacity of 100,000 units per annum.

With this enhancement, the total manufacturing capability at Manesar now reaches 900,000 vehicles annually. Notably, the Manesar facility has played a pivotal role, contributing over 95 lakh units to Maruti Suzuki’s remarkable 3 Crore production milestone.

Among the vehicles manufactured at this facility are popular models like Brezza, Ertiga, XL6, Wagon R, Dzire, S-Presso, Ciaz, and Celerio.

Management comment

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India Limited said, “Maruti Suzuki is deeply committed to Government of India’s vision of `Make in India’. We aim to nearly double our capacity to 4 million vehicles per annum over the next 7-8 years and this capacity addition of 100,000 vehicles per year is a step towards this goal. It will help us serve our customers faster and enhance our overall capability to manufacture up to 23.5 lakh units per annum.”

Furthermore, Takeuchi added, “This new assembly line adopts technologies that enhance human ergonomics, improve productivity and enhance traceability.”

About the Company

Established in 1981, the company entered into a joint venture agreement with the Government of India and Suzuki Motor Corporation (SMC), Japan, in 1982. By 2002, it became a subsidiary of SMC, holding the position of the market leader in India’s passenger vehicle segment. The principal activities revolve around the manufacturing, purchase, and sale of motor vehicles, components, and spare parts.

Business development

The company’s product-wise breakdown shows that 83.63% of its business is attributed to 4 Wheeler sales, while Spare Parts & Accessories contribute 12.07%, and the remaining 4.3% comes from other sources. As for its geographical presence, India constitutes 86% of its operations, while the rest of the world accounts for the remaining 14%.

Furthermore, the stock has experienced significant buying activity, yielding returns of more than 51% in the last year and the stock closed the day at Rs 12891.15 per share on the BSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.