New Delhi: Maruti Suzuki, the country’s largest car manufacturer, is planning to ramp up production to 1 million (10 lakh) units by early next year.
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The company has also launched its KB series engine, focused for its upcoming model A-Star.
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Shinzo Nakanishi, managing director, told DNA Money the Gurgaon plant has reached 7 lakh cars and Manesar plant will reach 3 lakh units, “so over all capacity would touch 1 million units by beginning of next year.”
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The car manufacturer added that it plans to export 60,000-70,000 cars this year. Maruti Suzuki is also expecting sales of 1 million cars in the domestic market by 2010-11.
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The KB series engine with a displacement of 998 cc will be fitted in the A-Star model, which will be launched next month.
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The company already has Maruti 800, Alto, Estilo, and Swift in the mid-car segment apart from the competition from other firms, and critics argue that some cannibalisation might happen. Nakanishi, however, is not worried.
“I know there are many cars in the mid-car segment but I believe there is still demand for it,” he said. He added that the global recession had impacted Maruti Suzuki, but refused to divulge further information.
“Recession is same for all countries, including Indian auto industry, including us. To handle this, we plan to do the basic thing, there are no special plans,” Nakanishi said.
The new plant has a capacity of producing 2.4 lakh engines annually and has been set up as part of Rs 9,000 crore investment Maruti had announced earlier.
After A-Star, the new engine would be used for other models over a period of 3-5 years.
The new engine will also power the export version of A-Star and the company plans to commence overseas shipment by early next year.
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The company, which had earlier announced plans to export 50,000 units of A-Star to Nissan, is renegotiating the deal as market triggers have changed over time.
source:sify
