Maruti Suzuki had recently announced its plans for its new plant in Manesar. Maruti currently has capacity of producing 12 lakh units annually and is investing Rs 1700 crores for its plant at Manesar that will be operational by 2012. Maruti also announced that it lined up another fresh investment of Rs 1925 crores for its proposed sixth plant in the country. The company is quickly expanding its capacities in India and by 2013 it will have additional capacity of manufacturing 250,000 units annually. It will also refurbish capacities of its three plants in Gurgaon which currently produce seven lakh units annually.

“We have been facing supply constraints on some models and new capacities. Refurbishment of the Gurgaon plant would help meet local demand as well as our export commitments,” said Osamu Suzuki chairman and CEO of Suzuki Motors. MSIL will also invest Rs. 2500 crores at its Rohtak plant in Haryana to increase its engine production capacity which will be funded through internal accruals utilising its cash reserves which currently stand at Rs 7000 crores.

Osama Suzuki who is presently in India also stated that the company is working on developing products for the global markets by synergising its operations with its new partner Volskwagen. "For Suzuki, it would be wise to develop those models that are sold in India. VW sells large volumes in China," he said. German car maker acquired 20 percent stake in Suzuki Motor Corp earlier this year. The cars jointly developed by both the companies will retail in Indian as well as global markets.