India’s largest car maker Maruti Suzuki, plans to almost triple its production capacity to 3 million units per annum, and back it up with a full foray into the SUV segment, apart from developing a small diesel engine for some of its cars.
In its annual report for 2013-14, chairman R C Bhargava has said while Maruti is eyeing annual sales of two million units in the next five years, it would enhance its research and development capability and expand its distribution reach to support sales of 3 million units per annum. Maruti sold 1.15 million units in 2013-14.
Parent firm Suzuki will invest and operate its upcoming 1 million units a year plant in Gujarat and sell the cars to Maruti at a no profit price. Maruti will invest leftover capital in R&D and expansion.
Maruti would also foray into the utility vehicle segment with the SX4 cross and a compact SUV based on the XA Alpha concept. It is developing a compact 800cc diesel engine that could be used in cars like Wagon R and Celerio as well as its Carry light commercial vehicle.
“We will try our own capability with compact diesel engines even if there is little precedence,” said Kenichi Ayukawa, MD and CEO, Maruti Suzuki India Ltd.