Swaraj Mazda lines up Rs 260cr for expansion

Light Commercial Vehicle maker Swaraj Mazda plans to invest Rs 260 crore to increase its production capacity from the current level of 12,000 units a year to 36,000 units per year. The expansion project would include a capacity to make 9,000 buses in the first stage.

Swaraj Mazda's vice chairman and managing director Yash Mahajan said that work on the project would start next month, and it would be completed in about 15 months.

The expansion project comes in the backdrop of the company's belief that demand for smaller luxury passenger vehicles is likely to grow significantly as a result of the robust economic growth.

Speaking about Swaraj Mazda's plans, on the occasion of the launch of its new luxury bus (in LCV category) in Chennai on Saturday, Mahajan said the company plans to roll out more passenger vehicles in the LCV segment.

A 12-seater is expected to roll out in three months, while a 41-seater is under development in Malaysia, and another 24-seater is also under development.