According to Bhargava, while the second line of 250,000 cars per annum was commissioned in January this year, the full capacity of 500,000 from the two existing lines will be achieved this year. The plant currently manufactures Baleno and Swift models for Maruti Suzuki.
However, despite offering a lower guidance for the new fiscal 2019-20, Bhargava said a third line would be commissioned without delay. When in full capacity with the third line being added, the Gujarat plant can manufacture 750,000 cars per annum eventually.
On the issue of shifting MSIL's Gurugram plant, Bhargava said that the move was being made to increase capacity and reduce costs, though an alternative location was yet to be finalised. "The intention, however, is to be in Haryana," he said.
Commenting on the potential uptick in demand post Lok Sabha elections, Bhargava expressed concern over factors like US sanctions on Iran for oil, implementation of BS-VI norms and other safety regulations. "If these were not there, I would have said demand will pick up," Bhargava said.
The company is investing around Rs 125 crore for a 100-bed hospital in collaboration with Zydus Hospitals and a school with Podar Group which will come up in phased manner.