Maruti Suzuki to sustain its double digit growth

January 30, 2018
According to people in the know, the company is working on a plan to produce 1.90-1.94 million units for the next financial year, which would be a growth of 10 percent. At this pace, Maruti Suzuki is likely to attain 2 million output target almost a year ahead of plan.

India's largest car maker Maruti Suzuki will aim at sustaining its double-digit growth in FY-19 led mainly by high profile launches like Swift hatchback, thus making it the sixth consecutive year of double-digit growth for the company.

According to people in the know, the company is working on a plan to produce 1.90-1.94 million units for the next financial year, which would be a growth of 10 percent. At this pace, Maruti Suzuki is likely to attain 2 million output target almost a year ahead of plan.

Already in April to December of FY-18, Maruti Suzuki has registered a growth of 14 percent with sales of 1.31 million and is likely to end the financial year with output of 1.7 million units

Kenichi Ayukawa, MD of Maruti Suzuki told ET that he expects sentiment in 2018 to better 'furthermore' and Maruti will aim to keep the current pace of growth as much as possible.

On the forecast for FY-19, Ayukawa said, 'The total market may grow about 7-8% close to 10%. That is why we try to keep same (growth)almost or expect it to be better. So growth would be more than 10%,' added Ayukawa.

Maruti Suzuki sees the momentum sustaining with new models like the all-new Swift to be commercially launched during the Auto Expo, Ciaz facelift, an all new Ertiga and the new Wagon R during the next financial year say people in the know.

In order to meet the growing demand for its products in the marketplace, Maruti Suzuki has already optimised its capacity in Haryana by 5% this financial year.

Led by the strong demand for Vitara Brezza, Baleno, Dzire the Gujarat plant which went on stream almost a year back has already started operating in two shifts. By beginning 2019, the second manufacturing line will go live, Ayukawa informed, which will add another 2.5 lakh units in capacity.

This will take the cumulative capacity of Maruti to 2.25 million units by end of FY-19.

'As far as we arrange (create fresh) capacity, we expect full utilisation of capacity,' added Ayukawa.

indiatimes