Maruti Suzuki plans to ramp up production post merger with Suzuki Powertrain India

While combating the various challenges propelled since the last year ranging from the labour agitation to rising fuel prices affecting production and sale of its models in the Indian auto market, the country’s largest passenger car maker Maruti Suzuki India has undertaken some pertinent steps to even out the challenges and emerge with a stronger stance in the auto industry.

The production was majorly hit at its Manesar facility owing to the rising labour discontent, which has now been resolved with wage negotiations between the management and the structured labour union. Even sales was badly affected due to the high interest rates and rising fuel prices, which has led the company to curtail production of petrol driven cars and ramp up the production of their diesel offerings.

In the last year, the company reported lowest operating margins as compared to the past five years mainly because of the rise in input prices and the promotional discounts offered to elevate the petrol car sales.

With the launch of the much awaited Maruti Ertiga in India, the automaker aimed to provide affordable, spacious, compact car powered with diesel engine for the market hit with mounting interest rates and petrol prices. Another major step taken in this direction is the amalgamation with its diesel engine manufacturing JV partner, Suzuki Powertrain India that is aimed at stepping up diesel car production from 2.5-lakh units to about 4 lakh units in FY13.

The Indian market has showcased positive acceptance for the Maruti Ertiga with the sales totalled to around 10,000 plus units in just 2 months since its inception in April this year. Amidst rising petrol prices, the company seems to be capitalizing on the Ertiga launch move.