Maruti Suzuki is planning to bring forward the start of vehicle manufacturing at a new plant in Gujarat, according to a report in the Economic Times. Citing unnamed sources close to the development, the news report suggests the automaker is considering launching operations at the new Sanand plant in Gujarat during January 2017 instead of May 2017. Company Chair RC Bhargava said, "In 2017, we will need the Gujarat plant and work is on in full swing there." Gaurav Vangaal, a senior forecasting analyst with IHS Automotive, said, "Given the environment, the tilt and preference towards Maruti is very high in the market and it wants to make the most of this. The company has been nimbler than ever before, be it with new capacity or new products, and several steps faster than market. There seems to be a strong resolve to achieve the mid-term goal, but they need to ensure that quality isn't compromised." Meanwhile, the automaker is also reportedly planning to significantly overhaul its popular model line-up in a bid to meet its targeted 2 million units in annual sales by 2020. The news report suggests mid-cycle facelifts with new engine options (including diesel and mild-hybrid technology) will become available from 2018 for Swift, Dzire, and Ertiga models. Unnamed sources close to the matter reportedly revealed that these models alone have potential of achieving volumes of nearly 450,000 units each year. "The development on new platforms clearly indicates that Maruti is sensitive to emerging competition in addition to the changing macro environment in the country," said Vangaal.
Significance: Maruti currently operates two manufacturing facilities in India with a combined annual production capacity of 1,450,000 units, while its upcoming plant in Gujarat would add 250,000. The news report suggests Maruti is keen to advance the start of operations at the Gujarat plant as the Gurgaon and Manesar plants will reportedly reach their full operating capacity by mid-2016. IHS Automotive forecasts indicate the Gujarat plant will be put to operations in January 2017 with the Celerio and the Wagon R models, while production of the Alto, the Alto800, and a new Minicab Truck is scheduled to start in 2018.
