Maruti Suzuki To Dedicate A Capacity Of 100,000 Units For Its LCV

Indian carmaker Maruti Suzuki is going to dedicate a capacity of about 100,000 units at its Gurgaon plant to manufacture a new light commercial vehicle (LCV) called ‘Super Carry.’ The LCV is likely to be launched in the first quarter of FY2015-16.

In order to reduce pressure on the unit, Maruti is reducing its capacity at the plant to 600,000 units per year from 900,000 units in FY2010-11.

As per media reports, the ‘Super Carry’ will have a small scale launch as the market for LCV is weak. The LCV is likely to be first launched with an 800 cc diesel engine. Maruti’s production target for the first year is 80,000 LCVs.

In 2014, only 3,90,636 LCVs were sold, which is a decline of 17.25%, as compared to LCV sales in 2013. This fall in sales is attributed to the slowdown in economy.

Gaurav Vangaal, senior analyst for light vehicle forecasting at IHS Automotive said, “The LCV segment is a different ball game altogether and a new entrant like Maruti should be cautious as the segment has been subdued for two years now. Even established products like Tata Ace and Mahindra Maxximo are struggling to maintain steady volumes.”