New Delhi : Maruti Suzuki India plans to start producing vehicles at its upcoming plant at Manesar from October 2011, six months ahead of schedule as the country's largest carmaker is facing severe capacity constraint, a top company official said.

The new facility, which will cost Rs 1,700 crore, will produce 2.5 lakh more cars, taking Maruti's annual production capacity to around 15 lakh cars by 2014. Maruti reached full capacity of 10-lakh vehicles a year in March and aims to maximise from the installed capacity by producing around 12 lakh vehicles during this fiscal by re-engineering its production lines.

"We are witnessing an unprecedented demand in the market. So, we intend to start our new plant earlier than the scheduled opening in April 2012 and will finish the year by 20% more production over the last year," Maruti's MD and CEO, Shinzo Nakanishi, said. Maruti Suzuki's total sales (including exports) rose 26% to 3.84 lakh units in the first four months of the fiscal ended July 31.

The new capacity will also allow the company to brace for the competition in the market. Maruti, which accounts for one in every two cars sold in India, has been losing market share to automakers such as Ford, Volkswagen and General Motors-all of them launched compact cars in 2010.

In the quarter ended June, Maruti's market share dropped to 56% from 61% in the year-ago period, while for the first six months of this calendar year, its share dropped to 47%.