At the ongoing Global Vibrant Gujarat Summit 2024, Toshihiro Suzuki, Chairman, of Suzuki Motor Corporation, said that the Suzuki Group will invest INR 35,000 crore to set up a new facility in Gujarat and INR 3,200 crore to expand the SMG plant's current fourth production line. The expansion is in line with the automaker's long-term plan to bring 10 new models to the market by the 2030-31 financial year and launch the first SMG BEV later this year.
NEW DELHI: In a bid to increase its production capacity, Maruti Suzuki will invest Rs 38.2 billion to add a new production line at its SMG plant. Toshihiro Suzuki, president of Suzuki Motor Corporation, the parent firm, announced plans to build a new second facility in Gujarat.
Suzuki Motor Corporation owns about 58% of Maruti Suzuki shares.
“To expand our production of battery electric vehicles (BEV) in the future, the Suzuki Group will invest INR 3,200 crore in Suzuki Motor Gujarat (SMG) to add a new fourth production line that can produce 2.5 lakh units annually,” Toshihiro Suzuki said at the ongoing summit. This will increase SMG's annual production capacity from the current 7.5 lakh units to 1 million units.
He also added, "We will invest Rs 35,000 crore to build a second automobile plant in Gujarat which will produce another million units annually." With this, the company's annual production capacity in Gujarat will rise to 2 million units, including 1 million units at SMG and 1 million units in the second new plant.
Apart from Gujarat, the first phase of capacity expansion work is progressing at the company's 800-acre site in Kharkhoda, Haryana, which will be built with a total investment of Rs 18,000 crore.
At now, Maruti Suzuki can produce a total of approximately 2.2 million vehicles annually. Going forward, its products will be launched from three factories in Haryana - Manesar, Gurugram, and Kharkhoda, and two plants in Gujarat. The automaker also has a research and development center in Rohtak.
Toshihiro Suzuki said that the Indian automobile market has expanded steadily over the past 10 years under the leadership and support of Prime Minister Modi.
"We, Suzuki, have also greatly expanded our Indian production capability. Compared to 10 years ago, we expect to produce 1.7 times more vehicles and 2.6 times more export sales in the current financial year," he said.
In August last year, Maruti Suzuki aimed to build 2 million additional annual capacity over nine years as part of the country's next phase of growth.
This is in line with its plans to launch 10 new models in the market by the financial year 2030-2031. With this, the Fronx and Jimny maker will have a total of around 28 different models in the next seven years, compared to the 18 in the current range
T. Suzuki noted that the automaker will launch SMG's first BEV later this year. “We plan to sell this model not only in India but also to export it to Japan and European countries.”
He added that the company will adopt a "multi-track" approach to fuel technologies and Suzuki, along with the National Dairy Development Board and Banas Dairy, has already started building four biogas plants in Gujarat.
For FY 2030-31, Maruti Suzuki expects internal combustion engine (ICE) vehicles, including compressed natural gas (CNG), biogas, flex-fuel vehicles, ethanol and blended fuel vehicles, to account for 60% share of sales. This will be followed by 25% of hybrid electric cars and 15% of electric cars. Their goal is to have 6 models of electric cars by then.