Suzuki’s third plant to come up in Manesar, Haryana is likely to commence operations in 2013 with a capacity to manufacture 2,50,000 cars per annum  In yet another example of automobile manufacturers going on an expansion drive, Suzuki Motor Corporation is planning to set up its third car manufacturing plant in the country mainly for rolling out small cars. The unit is likely to commence its operations in 2013, which will further strengthen the domestic compact car segment as well as Suzuki’s position in the small car segment in India.Surging demand for compact cars
“The demand for compact cars in the Indian automobile market has been increasing in recent times. Auto companies have launched several models of compact cars or are in the pipeline to do so. Suzuki’s move will pose stiff competition to these cars,” comments Manindar Singh, managing director of Pabla Ball Bearing, mid-sized manufacturer of automotive ball bearings in Ludhiana.
Notably, while Nissan launched its compact car Micra in July this year, Toyota plans to introduce its small car Etios in December 2010. The latter also plans to launch compact cars from its Daihatsu range in 2012. In fact, Fiat is also looking to launch a compact car in India by 2012. According to a Crisil Research report, although sales per model for small cars would decrease by 6-7% in 2010-11, total sales of the compact cars is expected to grow by 11-13%.
“The new manufacturing plant will help to bring down waiting period for vehicles manufactured by Suzuki. India is an emerging auto hub just behind China, and with other markets in the world saturating, India is an apt destination for the company to set up a manufacturing plant here,” comments Nitin Madan, managing director of Engpar Sales Pvt Ltd, a mid-sized manufacturer of automotive parts in New Delhi.
Suzuki’s new plant is likely to come up in Manesar, Haryana and will have the capacity to manufacture 2,50,000 cars per annum.
Arup Choudhury |
