Maruti faces shadows of production delays

MarutiIf the phenomenal growth in the demand for cars is a boon for majority of the automobile players in the country, it is surely proving as a problem for Maruti Suzuki.

As the company, is currently facing the constraint of long waiting periods for the availability of its key models. The major reason for this is lack is the misinterpretation of the expected demand by the company at the beginning of this year.

Another reason for this backlog has been the slow supply from the component manufacturers that has led to a slow production of as much as 20% on many models.  

But the company is trying hard to speed up its expansion plans and escalates its production numbers in order to meet the rising demand.  As it is pumping in Rs 1700 crore in a new plant in Manesar, that will enable the company to manufacture an additional units up to 250,000 by 2012. It is also working closely with the vendors with an aim to scale up its production capacity to 1.2 million by this year end.

Besides this, the company is also contemplating a possible deal with Volkswagen under a global synergy programme for a contract of manufacturing.