Maruti Suzuki's investment plans unveiled at Vibrant Gujarat Global Summit 2024
Jan 10, 2024
New Delhi [India], January 10 : Toshihiro Suzuki, President of Suzuki Motor Corporation (SMC), unveiled Maruti Suzuki's investment plans in the state of Gujarat, signalling a significant stride in the automotive sector in a major development announced during the Vibrant Gujarat Global Summit 2024 on Wednesday.
In the first announcement, Maruti Suzuki India Ltd. entered into an agreement with the State of Gujarat for the construction of a new automobile production plant.
According to a press release by Maruti Suzuki, the plant is anticipated to commence operations in the fiscal year 2028-29, with an annual production capacity of 1 million units. The total investment for this endeavour is estimated at 350 billion rupees, excluding land acquisition costs.
The specific location and the models to be produced will be disclosed in the coming period.
Simultaneously, Maruti Suzuki shared plans for the establishment of a fourth production line in its wholly-owned subsidiary, Suzuki Motor Gujarat Private Limited ("SMG").
This strategic move, involving an investment of 32 billion rupees, aims to cater to the escalating production demand for electric vehicles (EVs) in the future.
The fourth line is set to commence operations in the fiscal year 2026-27, contributing to an increase in SMG's annual production capacity from the current 750,000 units to 1 million units.
Upon completion of both the new plant in Gujarat and the fourth production line at SMG, the State of Gujarat is poised to boast a total annual production capacity of 2 million units.
This aligns with Maruti Suzuki's overarching goal to secure a production capacity of approximately 4 million units in India by the fiscal year 2030-31, preparing for the anticipated expansion of the automobile market in the country.
Toshihiro Suzuki, addressing the Vibrant Gujarat Global Summit, expressed, "In this ever-growing country, we will provide a variety of sustainable mobility options by focusing on Indian customers."
This statement underscores the company's commitment to offering diverse and eco-friendly mobility solutions in response to the evolving needs of the Indian market.
Outlined below are the key details of Maruti Suzuki's new investments, which include: a new plant in Gujarat with an investment amount of Rs 350 billion and a production capacity of 1 million units; a fourth production line of SMG (EV Line) with an investment amount of Rs 32 billion and a production capacity of 250,000 units.
These strategic investments, combined with the upcoming new plant in Kharkhoda, Haryana, scheduled to commence operations in 2025, position Maruti Suzuki on track to achieve its milestone of 4 million units in production capacity, solidifying its pivotal role in India's automotive landscape.
