Maruti Suzuki India on Tuesday said the commissioning of its Gujarat plant may get delayed.

The car maker has signed an agreement with the Gujarat Government to buy 700 acres of land near Mehsana, with an investment of Rs 4,000 crore, to set up a manufacturing facility.

Slowdown blues

Chairman R.C. Bhargava said that since the slowdown in the auto sector was acute, it is not likely that the company will commission the plant before the end of fiscal 2016.

He was speaking after the company’s Annual General Meeting, on Tuesday.

Bhargava added that the current fiscal will be another tough year due to the challenging economic environment .

Manesar line

In the Annual Report for 2012-13, Bhargava has said that the company plans to commission the third line at its Manesar plant and phase-I of the diesel engine line in Gurgaon soon.

He said the proposed capital investment for this year is approximately Rs 3,500 crore.

Increase in capacity

The company currently has an installed annual capacity of about 15 lakh units.

The Manesar line will add about 2.5 lakh units, taking the total to 17.5 lakh units.

Pointing out that 2011-12 was a difficult year for the economy, he said 2012-13 was worse, particularly for the manufacturing sector.

Export markets

In the Annual Report, Bhargava also said that Suzuki Japan has decided the Indian unit will now be responsible for the export markets of Africa, West Asia and neighbouring countries.

He said the company has to determine the products to be manufactured for these markets, and if necessary, establish assembly plants overseas to help export growth.

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