With the country's car market booming, automobile companies are ramping up production. A few are raising capacities.

In April-July 2003, the passenger car market grew 32.5 per cent from year-ago figures. Exports grew 84.76 per cent during the period.

The Society of Indian Automobile Industry is now pegging the year's growth at 10-15 per cent, against 6 per cent last year.

The growth in the market has forced Maruti Udyog, the country's largest car company, to use its third unit assembly line, which was lying idle until now.

Hyundai Motors India has ramped up production capacity from 120,000 (on a two-shift basis) last year to 150,000 this year. It plans to go up to 250,000 by the end of 2004.

Toyota Motors is finalising plans for capacity expansion.  Says Toyota Kirloskar Motor Deputy Managing Director K K Swamy, "At present, we are working at almost full capacity. To balance capacity with growing demand, we may have to add another 75,000-unit line at an investment of Rs 200-300 crore (Rs 2-3 billion) over the next two years."

At Honda's Greater Noida factory near Delhi, things are moving steadily. A company spokesperson says the current capacity utilisation is just over 50 per cent on an installed capacity of 30,000, working two shifts.

"A year from now, capacity utilisation will definitely be cent per cent," he adds. Honda is also working on its compact car project, which will call for fresh capacities.

Says Ford India vice-president Vinay K Piparsania: "We have an installed capacity of 50,000, which is very flexible. Ikon exports are helping us utilise this capacity completely. But as we launch new models this year and next, we will have to enhance capacity."

Rival General Motors also said recently its Halol factory had started a second shift. The company has also announced plans to invest close to Rs 600 crore (Rs 6 billion) at Halol to enhance capacity, and launch several new vehicles.

Boom time

• Maruti is using its third unit assembly line, which was lying idle until now.
• Hyundai increases production capacity from 120,000 last year to 150,000 this year.
• Toyota Motors may add another 75,000-unit line over the next two years.