Maruti Suzuki has plans to double the capacity of K-Series engines in Gurgaon plant by 2012. The venture will have an investment of Rs1250crore by which the production will reach 5 lakh units. The K-series engine is currently fit in Maruti’s Swift, A-Star, Ritz, Estilo and SX4. Soon other ranges and models barring M800, will be fit with this engine.
Maruti’s business has 60%petrol engine cars. Maruti’s net investment with this will be Rs12000 crore in the last three years. The projects initiated under the investment are a new car plant, diesel and petrol engine plants in Mansar. Also there will be a new model development and a R&D center in Rohtak. As such, the diesel engine capacity of Maruti is 2 lakhs per year.
According to the Chairman&CEO of Suzuki Motor(which has 54% share from Maruti) there will be an investment of Rs2500 crore for R&D and K-series engines production expansion. Rs1250crore will be allocated for the engine plant. Recently the company had a twin smile- the millionth car and the laying of the foundation for the second car plant.
The company is fully aware of the competition persisting in the country despite enjoying 50% share of the entire market. The domestic market sale of Maruti in India is around 1.7 million units. The net installed capacity from Gurgaon and Manesar is one million units and this will be increased by 0.25 million in 2012 at an investment of Rs1700 crore.