Suzuki Motor’s president announced a 350 billion rupee ($4.21 billion) investment for a new car plant in Gujarat state, India, during an investment summit on Wednesday.
Maruti Suzuki India, as per Suzuki Motor Corporation President Toshihiro Suzuki’s announcement at the 10th Vibrant Gujarat Global Summit, plans to invest Rs 35,000 crore for establishing its second manufacturing facility in Gujarat.
The new plant is projected to have an annual production capacity of 10 lakh units.
“We will invest Rs 35,000 crore for the construction of a second car plant in Gujarat which would produce another one million units per year. As a result, the annual production capacity in Gujarat will be two million units — 1 million units at Suzuki Motor Gujarat and one million units at the second new plant,” the company said.
Suzuki Motor holds a majority stake of approximately 58% in Maruti Suzuki India, which aims to achieve an additional production capacity of 20 lakh units by 2030-31, featuring about 28 different models.
Currently, the company’s total production capacity stands at approximately 22 lakh units per year, distributed between its manufacturing plants in Haryana and Gujarat.
The two Haryana plants, located in Gurgaon and Manesar, collectively manufacture approximately 15.5 lakh units annually. Additionally, Suzuki Motor Gujarat, a subsidiary, has established a facility in Gujarat with an installed production capacity of 7.5 lakh units per year.
Maruti Suzuki India, a prominent player in the automotive market, is actively engaged in the establishment of a new manufacturing facility in Sonipat, Haryana.
The company is earmarking a substantial investment of Rs 11,000 crore for the initial phase of this ambitious project.
In its first phase, the new plant is set to boast a formidable manufacturing capacity of 2.5 lakh units per annum.
This strategic move aligns with Maruti Suzuki’s commitment to expanding its production capabilities and fortifying its presence in the dynamic Indian automobile sector. The company envisions commissioning the initial phase of the Sonipat facility by the upcoming year.
The significant financial commitment underscores the company’s proactive stance in addressing the burgeoning demand for automobiles in the Indian market.
By channeling resources into this state-of-the-art manufacturing plant, the car market leader aims not only to meet current market needs but also to position itself for sustained growth in the future.
This forward-looking initiative is part of Maruti Suzuki’s broader strategy to diversify its manufacturing footprint and enhance its overall production efficiency.
The company’s dedication to incorporating cutting-edge technologies and adhering to global manufacturing standards is evident in the meticulous planning and execution of this new facility.
As Maruti Suzuki continues to be a frontrunner in the competitive automotive landscape, the establishment of the Sonipat plant signifies a pivotal milestone in its expansion journey.
The infusion of Rs 11,000 crore underscores the company’s confidence in the project’s viability and its commitment to fostering economic development in the region.
The commissioning of the new facility’s first phase, anticipated in the next year, marks a crucial step toward achieving the company’s production goals.
This move aligns seamlessly with the company’s vision of not only sustaining its leadership position but also contributing significantly to the growth and development of the automotive manufacturing ecosystem in Haryana.
In conclusion, Maruti Suzuki India’s investment in the Sonipat plant stands as a testament to its proactive approach, aiming to meet future demand, enhance production capabilities, and solidify its stature as a trailblazer in the Indian automotive industry.
The upcoming commissioning of the plant’s initial phase is poised to set the stage for a new chapter in Maruti Suzuki’s manufacturing prowess.
