While the market leader in the Indian passenger car segment, Maruti Suzuki is facing a tough situation in front of the rising competition but the fact of the matter is that the company is firming up plans to open a new plant at its Manesar unit and will be adding close to 2.5 lakh units to its existing capacity.

It has been learned that the company is planning to fund these expansion via the internal accruals. It is to be mentioned here that the company currently has close to Rs. 7,000 crore in cash as reserves and expects to fund the expansion plans by taking a chunk out of its reserves.

The company, which is 54.2% owned by the Japanese Suzuki Motor Corporation has been facing a situation of capacity constraints and hence, has been losing market share to its counterparts for the past few months.

Apart from the capacity expansion plan, the company is also working on its plan to open its R&D unit at Rohtak which will empower the company to manufacture a car totally out of India.