New Delhi: The country's largest car maker Maruti Suzuki India is planning to shift production of about three lakh vehicles from Gurgaon to decongest the old plant as soon as the two new units at its Manesar facility come up.

The Gurgaon facility that has three units currently produces nearly 9.5 lakh units per annum. Once the vehicle output is trimmed at the facility to 6-6.5 lakh units, the company aims to utilise the idle space and workforce to produce more engines and other parts there.

The company had rolled out nearly 9.5 lakh units from Gurgaon in 2010-11 out of a total installed capacity of 8.5 lakh units at three plants in the complex, spread over 300 acres of land. It produces models like Swift, M800, Omni, WagonR, Ritz, Alto, Eeco and Gypsy there.

At present MSI is setting up two new units inside its Manesar facility at a total investment of Rs 3,625 crore. The existing plant there produced about 3.5 lakh units in 2010-11.

The two new plants in Manesar will have a capacity of 2.5 lakh units annually each. The company is aiming to open the second unit by September-October this year, while the third one is scheduled to be operational in 2012-13.

On by when the company will start trimming its production in Gurgaon, Bhargava said: "We would like to do it as soon as we can do. It will depend on creation of new capacity and market demand."

Besides vehicles, the Gurgaon facility also produces engines, manufacturing about 7 lakh units per year of the K-Series engines and about 4.5 lakh units per year of F, G and M-Series engines.

Elaborating on how the company plans to utilise the idle space post-decongestioning Gurgaon, Bhargava said: "It will be mainly used for parts production. We will produce more engines and will ramp up the capacity."

Besides Gurgaon, a separate entity -- Suzuki Powertrain India Ltd -- produces diesel engines at the Manesar facility. It has a capacity to roll out 3 lakh units per annum.

MSI is also considering setting up its 7th plant, over and above the two upcoming units in Manesar, as it aims to sell up to 30 lakh units every year by 2015-16.

The company's present overall vehicle capacity is 12 lakh units per year. Once the two new units at Manesar become operational by 2012-13, its total production capacity will go up to 17 lakh units annually.

In 2010-11, the company's sales soared 24.81 per cent to 12,71,005 units from 10,18,365 units in the previous fiscal. Domestic sales increased by 30.08 per cent to 11,32,739 units from 8,70,790 units in the previous fiscal.

MSI's passenger car sales during last fiscal jumped by 26.24 per cent at 9,66,447 units from 7,65,533 units in FY'10. However, its market share in this segment fell to 48.74 per cent from 50.09 per cent in 2009-10.

(Agencies)