Car makers Increase Production Capacity

Monday 22 March 2010, 00:00 AM by Payal Pathak

Till now, India had at least one car maker who always had waiting period on nearly all its models – Maruti Suzuki. Now, the new decade brings new models and nearly all of the car makers have a waiting period or will need to ramp up their production capacities to meet the growing market demand. However, most of them believe that the demand can be easily met as the market penetration is still not deep enough.

Honda Siel Cars Limited and Toyota are exploring new production venues to invest in increasing their production capacities. Honda City and Toyota Innova are one of the hottest selling models respectively from both the car makers. On the other hand Maruti Suzuki and Hyundai Motors India limited are planning to expand their existing production units and increase their manufacturing capacities.

Even the two-wheeler manufacturers are planning to increase their production capacities. Hero Honda, Honda Motors Cycle and Scooters Limited are scouting for new locations to set up new manufacturing unit while Bajaj Auto is planning to revamp its production line and increase its capacity.

Although car prices have hiked considerably in past few months, industry experts believe that it may hamper the growth marginally and only for a very short time. “In the short term, interest rate hikes and emission norms may impact demand, but in the long term, there is huge potential,” said J Sen, VP (marketing), Honda Siel.