The Nikkei reports that Suzuki Motor Corp. will build a third auto assembly plant in Manesar, near New Delhi, aiming to bring the facility online as early as 2013. With an annual capacity of 250,000 vehicles, the new plant will boost Suzuki’s annual production capacity in India to 1.7 million units.
Maruti Suzuki India Ltd., a local subsidiary of Suzuki, in 2007 launched an assembly plant with an annual capacity of 300,000 vehicles in Manesar. It is now building its second factory on the same site, with the annual capacity set for 250,000 units. The second plant is scheduled to come onstream in spring 2012, but given the surging demand in India, Suzuki decided to build a third one at the site even before launching its second.
India’s passenger car market surged 25.6% on the year to nearly 1.95 million vehicles in fiscal 2009, and it has been growing at a rate of about 30% a month so far this fiscal year. Against this backdrop, Maruti Suzuki shipped a record 105,000 vehicles, including exports, in August.
Kyodo News reports that the planned expansion will make India the biggest production base for Suzuki, even outstripping Japan. The company currently has a market share of nearly 50% in the country, with nearly two-thirds of its group operating profit estimated to come from India.