In light of the ever increasing demand of four wheelers, Maruti has been facing severe capacity constraints. The company produced 1 m units last year and has aggressive plans to produce 1.2 m units this year. As the company does not want to lose out on the market share because of capacity constraints, as per a leading business daily Maruti has begun capacity expansion talks with its vendors so as to ensure regular and uninterrupted supply of raw materials. Typically the vendors wait until the actual demand surfaces and then expand their capacity. If this happens Maruti will be a laggard in terms of output in the hyper competitive auto market and lose market share. In order to avoid this situation and maintain/increase market share the company has chalked out a new programme whereby it will work with its vendors to proactively identify their fund raising plans and planned capacity schedules.