Maruti Suzuki faces capacity crunch

 Maruti Suzuki faces capacity crunchWhile Maruti Suzuki has been able to outshine the counterparts by staying at its toes and even at the top slot in the Indian automotive market, but the situation is panning out to be tough for the company itself.

As its sales grow, it is getting into the catch-22 situation due to the capacity constraints. Notably, the company sold over a million cars in the FY 20009-10 and it is expecting 10% surge in the unit sales this fiscal.

However, with the plants already operating at their 100% capacity, it is clear that the auto major is certainly not in its comfort zone right now. In fact, the company can only raise its capacity now in 2012.

Hence, till then the engineers will have a tough time by putting innovations at work trying to minimize the capacity constraints at the automaker.

Maruti's two plants in Gurgaon and Manesar put together, have an installed capacity of 800,000 cars per year but already making innovation happen at the workplace, the automaker was able to produce over a million units in the current fiscal.