Maruti to invest Rs 2.5 crore in its Manesar facility

Maruti Suzuki, India's largest car maker is now aggressively planning to invest in its small car projects in India as major car makers around the world are now trying hard to capture a significant market share in small car segment in the country by stepping up their investments in this segment.

Recently, the company has announced that it has plans of investing Rs 1,750-crore to enhance the capacity at its Manesar plant by 2.5 lakh units in two years from current capacity of 10 lakh units of its cars. On the other hand in engine manufacturing capacity, the company is planning to expand its capacity to 7 lakh units from existing 5 lakh units a year.

In last two months the competition in small car market has become very stiff as many new small cars has been launched in India in this period. Many major car makers are trying to acquire a significant market share in the small car segment including Toyota, Honda, Nissan, Ford and Volkswagen. The small cars in India includes Maruti Alto, Maruti Wagon R, Maruti Swift, Ford Figo, Volkswagen Polo, Hyundai Santro Xing, Hyundai i20, Hyundai i10 and Chevrolet Beat. Besides this many new cars are also expected to be launched in the country in coming months including Toyota Etios, A small car from Honda and an ultra low cost car from Bajaj-Nissan-Renault tie-up.

“With all global car makers coming into India, we are facing severe competition. We are celebrating the success of producing 10 lakh cars in a year, but to take it to 2 million vehicles will be a tough journey, said Mr Suzuki.