Maruti revamping production lines to overcome capacity constraints

HYDERABAD, INDIA: Jan 13, 2010 -- With Maruti Suzuki production set to cross one million car by March, the country's largets car-maker is bracing to rationalise its production lines to meet capacity challenges.

“This will be a major milestone for the company and also brings new challenges as we could face some capacity constraints. By using the Japanese Kaizen production methodologies, we are working to bring about incremental gains in production at Gurgaon and Manesar plants,” Mr I. V. Rao, Managing Executive Officer, Engineering, Maruti Suzuki India Ltd (MSIL), said.

Kaizen refers to a process which constantly seeks to improve productivity.

Speaking to newspersons here, Mr Rao, said, “The Manesar plant is faced with serious capacity constraint. Therefore, we are in the process of further streamlining operations. However, we have no plans to add a third shift. We are actively considering expansion and a decision is likely by next fiscal.”

“The company accounts for 54 per cent market share and we will continue to bring in new products to retain our hare,” he said.

Asked if the General Motors' Beat's aggressive pricing will impact Maruti's numbers, Mr Rao said, they are yet to consider this but hastened to add, “it is surprising to see a car with such features being offered at this price.”

With the BS IV emission norms slated for April 1, the company is either upgrading all the existing models or changing the powertrain in some of them.

Most changes will be completed within two months ahead of the April deadline, he said.

While A-Star, Ritz, SX4, Zen Estilo and Eeco conform to BS IV norms, powered by new engines, Omni, Alto, Wagon R and Swift, both petrol and diesel will be modified. However, Maruti 800 would not be sold in 11 cities where BS IV norms come into being next year, he said.

RISING COSTS

Referring to the rising input costs of most items and commodities barring steel and the upgrade costs to meet the BS IV norms, it would be tough to retain the current price level. However, the exact pricing depends on the market conditions, he said.

Source: Thehindubusinessline.com