Suzuki to invest `600 crore on second manufacturing unitSuzuki to invest `600 crore on second manufacturing unit
ENS Economic Bureau @ New Delhi
NEW DELHI: Suzuki Motorcycle India on Thursday said that it plans to invest about Rs 600 crore for setting up its second two-wheeler production plant in near future.
“We have planned investments to the tune of about Rs 600 crore for the second production plant. The second facility will add production capacity of up to one million units in the future,” said Satoshi Uchida, managing director, Suzuki Motorcycle India, on the sidelines on the launch of its new scooter Burgman Street (priced at Rs 69,000).
Currently, the company is in the process of finalising the location of the plant, which is expected to have a production capacity of 3-5 lakh units per year in the first phase.
Suzuki Motorcycle India executive vice-president Sajeev Rajasekharan said that in a couple of months, they would finalise on the location. He added that the new facility is expected to be ready in about two years from the time it is finalised. The company is scouting for sites in Delhi NCR, Rajasthan, Uttar Pradesh and Haryana.
At present, the company’s existing facility at Gurgaon can produce up to 1 million units per annum, which can help it to meet demand for its product for the next few years. Suzuki is looking to sell 7 lakh units in the country in the current fiscal, a growth of 40 per cent over 5 lakh units it sold during 2017-18. The company has set a target of one million units sales by 2020.
To achieve the target, the company will open 200 new dealerships this fiscal and plans to introduce new products as well.