Celerio to be first model to roll out from Suzuki’s Gujarat plant

Suzuki’s wholly-owned arm in Gujarat will first see the rollout of the Celerio hatchback followed by models that have been codenamed YRA and YAD, say sources in the know. The new facility will go on stream towards the end of 2016 or early 2017 and its corporate HQ will be at Maruti’s regional office at Ahmedabad.

Launched at the Auto Expo, the Celerio has got off to a great start with 14,000 bookings of which 50 percent are for the AMT version. The Celerio currently rolls out from Maruti’s Manesar plant with an initial production capacity believed to be about 5,000-6,000 units monthly or 60,000 units annually. It is expected to reach peak volumes of 100,000 units in 2015.

Along with the Celerio, the YRA compact hatchback will also roll out from Gujarat though its first launch is slated from Manesar in September 2015. It is likely to be produced in numbers of 150,000 units annually, say the sources.

The Celerio replaces the A-star that will be phased out by the end of this year along with the SX4, when the new SX4 Crossover hits the market.  This SX4 Crossover will also be exported as will the YRA. The B-segment YRA compact is likely to be a replacement for the Ritz that would be nearing its lifecycle by then.

“About 30 percent will be for exports mainly to Europe where clear specifications and matches are required and the balance will be sold in the domestic market,” says an industry source.

The third model to be manufactured at the Suzuki plant in Gujarat will be S-Cross (codenamed YAD), a global model. Production is expected to commence by August 2017.

A production capacity of 225,000 units per annum is being envisaged for the plant, according to industry sources.

One key reason for floating the new Suzuki facility at Gujarat was to make models in India at affordable rates so that these could be exported overseas with the Suzuki badging.

Despite recently rumblings by mutual fund investors against Suzuki’s plan to set up a 100 percent subsidiary that will manufacture cars that Maruti Suzuki will sell, the company plans to go right ahead with its Gujarat plans. Chairman RC Bhargava says that the company’s board has taken the decision in the interests of the company. Detailed letters have also been despatched to the investors who raked up the issue explaining Maruti’s decision.