New Plant In Gujarat To Manufacture Baleno And Vitara Brezza

In terms of sales numbers, India's largest car manufacturer has always lead from the front. The premium hatchback Baleno and the entry-level SUV Vitara Brezza have received an overwhelming response from customers. Even though Maruti have two mega-factories based out of Manesar and Gurugram (formally known as Gurgaon), the car maker has struggled to meet the demand for the said models. The waiting period on both these cars is at least 6 months.

With promising new cars in the pipeline, like the Baleno RS, the Ignis and the next-gen Swift, Maruti's problem of meeting customer demand will surely touch new heights. To avoid such a situation, according to media reports, the company is planning to start a trial production of the Baleno at its brand new facility built in Hansalpur, Gujarat from the first quarter of next year. This move will not only help the company to bring down the waiting period on the popular hatchback but also help ease pressure on the other plants in Haryana.

Previously, during an interaction with the media, Mr R S Kalsi, Executive Director, Marketing and Sales, Maruti Suzuki India, explained that the company is working to "de-bottleneck the lines and enhance production". On another occasion, he confessed, "We feel bad, embarrassed as we don't want our customers to wait for long. Now we are focusing on capacity enhancement."

Kalsi said that Baleno's production is 'going up' from 8,000 units per month to 12,000 units, whereas the Brezza's production started at 8,000 units per month, has already crossed 10,000. He shared the challenges a company faces when trying to ramp up production. It is a gradual process, he said, and involves much more than just the OEM (Original Equipment Manufacturer). The third party suppliers may have to double their capacity to accommodate for a 20 per cent additional volume. Maruti is currently negotiating with its list of suppliers to meet such inflated demands in the near future. Kalsi shared that such issues are expected to be addressed in the best possible manner to ensure the production from the Gujarat plant starts next year.

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There is another incentive for Maruti once the Gujarat plant is up and running. This facility can potentially be the hub for manufacturing models which are exported, like the Baleno. With a shipping port in close proximity, it only makes sense to cut down on transportation costs and manufacture models for the international market from the Gujarat facility.