Automobile manufacturer Maruti Suzuki India Ltd has decided to further extend its dominance of the vehicle market in the country. According to reports, the car company is planning on building its fourth plant in Gujarat, for which it has purchased land. The country’s biggest automaker plans to increase its output capacity to 3 million units according to the business daily Nikkei on January 27, 2013.
R.C. Bhargava, who is the chairman of Maruti Suzuki India, informed Nikkei that the new plant will be able to produce around 750,000 vehicles every year. With this new venture the company would be able to push sales in Europe and the Middle East by the year 2017. This is a significant step forward for the top car manufacturer in Indian (in terms of volume).
With the new plant, Maruti Suzuki will also be able to double its annual production capacity and comes on the back of a weakening yen. The company will begin working on its Mehsana plant in Gujarat by March 2013, this was its third plant in the country and it will start producing vehicles by the year 2015.
The dominance that Maruti Suzuki has exerted in India is evident from the fact that a couple of years ago, every second new car bought in India was a product of the company, which is controlled by the Suzuki Motor Corp. in Japan.