New Delhi : Maruti Suzuki on Aug 26 said the company may build a new factory at its Manesar location as it expects demands to remain strong over the coming years.

The company, that currently can produce 1.2 million cars, is already in an expansion mode at Manesar where it is investing close to Rs 1700 crore to add a fresh 250,000 units as it grapples with long waiting periods on some of its models. Chairman RC Bhargava said the new expansion could be of similar scale, around 250,000 units, and so could be the investments. If approved, the company's total production capacity could rise to 1.7 million units.

"We are at this moment preparing a project report for another 250,000-unit line at Manesar. It is a normal practice to work on project reports for further expansion and keep them ready, so that they can be implemented whenever there is a need," Bhargava said.