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Challenge that the industry faces today is of scalability - Shinzo Nakanishi Print E-mail
Written by Anand   
Wednesday, 17 November 2010
New Delhi: "The challenge that the industry faces today is of scalability," said Shinzo Nakanishi, Managing Director & CEO, Maruti Suzuki India Limited, while stating that Capacity is one of the biggest challenges being faced by the auto industry today.

"When we say capacity, it is not just production capacity, it is also management and R&D capacity," he said. He said that if the component industry failed to keep pace with the original equipment manufacturers (OEMs) in capacity expansion, it would be the biggest bottleneck for the growth of the automobile industry.

Currently the company is going through a massive investment drive with capex plans of Rs 1,925 crore to set up a third plant at Manesar near Gurgaon. After the capacity addition, Maruti Suzuki will be able to produce 17.5 lakh units by 2013. The capacity of the new plant will be 2.5 lakh annually. Maruti is also investing Rs 2,500 crore on an engine plant and research centre in Rohtak.

In order to meet the need for trained hands and to address the skill shortage Maruti Suzuki, which has already adopted 17 ITIs across the country, is planning to increase this number to 53 by 2011. Maruti would be investing about Rs 1 crore per ITI. The trained manpower would not be exclusively for Maruti but also for it's vendors.

Stating that rising incomes, aspirations and support from government policies were driving the growth, he expressed doubt about the preparedness of the industries to tap the opportunities created by this growth.

The company, having registered sales of approximately one million cars last year, expects to sell 1.3 million cars by the end of the current fiscal year.

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