According to Shuji Oishi, director (marketing & sales) MSIL, the capacity of the Manesar plant will be increased to three lakh units from the current 1 lakh units and the Gurgaon plants would be capable of producing seven lakh units bringing the overall installed capacity to more than 9 lakh units.This will make MSIL the largest mass producer of cars in the country.

Keeping in mind the increasing demand for diesel powered cars, the company also plans to increase its diesel power train line at its Maneswar plant from 1,00,000 units to 1,20,000 by the end of March.Sales figures of the Swift till January show that of the 1,72 lakh units of the Swift sold, 50,000 units were of the diesel model. Analysts attribute the acceleration of Maruti's expansion plans to an anticipated surge in exports and the impending launch of the Nano.

MSIL has already agreed to producing 2 lakh units of the A Star, the new car that was unveiled recently, in addition to the Splash, by 2010. From this, 1.5 lakh units of the A Star has been earmarked for export so the overall export target by 2010 may well exceed 2 lakhs. With more and more global car manufacturers eyeing the Indian small-car market, MSIL could be looking to prevent a capacity shortfall as it gears up to meet Tata's Nano challenge in the domestic market.

Suzuki Motors is investing close to Rs 7,000 crore in its research and development (R&D) centre in India.So far, MSIL has been dependent on SMC to provide expertise and guidance for its compact car projects.In due course of time, MSIL intends to have fully independent operations and is in the process of creating an infrastructure that will reduce dependence on SMC. MSIL has plans to produce a fully India-built car for the world market in the next few years.

The company is confident about producing a world car fully designed,engineered and manufactured in India in the next 2 or 3 years. Indian engineers are currently being trained in the Suzuki's Japanese facility and the company aims to double the number of engineers from 480 to 1,000 by 2010. The new Swift hatchback and the A Star were developed with the help of Indian engineers and designers based in Japan.

The company is in the process of identifying land to set up a R&D unit near its Maneswar facility. The new R&D unit will contain various testing and simulation facilities in addition to a world class testing track.
 
A senior executive of MSIL agreed that there could be a possibility of the company shifting its small -car design center to India in the future, however, plans regarding the projected move have yet to be finalised.