Maruti open to contract manufacturing
While on the one end, the company is facing several issues to meet the rising demand of the Indian consumer but the Chairman of the market leader, Maruti Suzuki, R. C. Bhargava has said that the company may look at the option of making cars for other carmakers.
Moreover, the chairman also said that as the cost of manufacturing for the company is very low, it is indeed a very good opportunity for the company to look at the option for making cars for other automobile manufacturers.
However, the only catch here is that the company will be looking at selling these cars under a different badge and the looks will be different from the cars that Maruti sells in the Indian market.
It may be noted here that the company has a similar arrangement with Nissan for which it sells A-Star under the Pixo badge.
According to the industry experts, a deal with Volkswagen is surely a possibility as the German auto major holds a 19% stake in the parent company of Maruti, Suzuki Motor Corporation.
It is to be mentioned here that Maruti is investing Rs 1,700 crore to double the capacity of its Manesar plant by 2012.