India’s largest carmaker Maruti Suzuki will double its production capacity to 4 mln vehicles per year in the next six years from around 2.25 mln at present, the company’s parent, Japan-based Suzuki Motor Corporation said at an investor event in its home country. This confirms source-based media reports that the company plans to double its production by 2030.
At present, it has a production capacity of around 1.5 million at its two units in Haryana – one at Manesar and the other at Gurgaon.
In addition, Suzuki Japan operates a plant in Gujarat that has the capacity to produce nearly 750,000 units. Suzuki Motor Co recently said it plans to transfer this plant to Maruti Suzuki to simply the management of the Indian operations.
Moreover, Maruti Suzuki is in the process of putting up its third plant in Haryana at Kharkhoda. This will be its largest plant, with a production capacity of 1 million units, and is scheduled to start operations in the next financial year.
In its presentation, Suzuki Motor Co also said it will create an extra capacity of 1 million units per year by 2030, without revealing any details.
Meanwhile, Maruti Suzuki is yet to fully utilize its existing production capacity of 2.25 mln in India.
For example, last financial year, it produced only 1.91 million vehicles at its three plants, and in the first half of this year, it has produced 9.8 lakh units
This is primarily because of lack of demand, as some of the core models for Maruti Suzuki – such as Alto – are seeing low demand from customers, even as SUV models such as Brezza, continue to do well.
Due to a shift in the market towards SUVs, and away from hatchbacks, Maruti Suzuki has seen a fall in its market share in the country over the last four years.
It had a market share of close to 50% in 2018, which has fallen to around 42% now.
However, with increased focus on SUVs, the company has been able to improve its market share in recent months, and has emerged as India’s biggest maker of SUVs.
In the presentation made in Japan, Suzuki said its aim is to recapture the 50% market share milestone by 2030, by when it expects to be selling 3 million vehicles out of the total 6 million that will be sold in India.
Key to its strategy will be the launch of its first battery-powered electric vehicle by next financial year, and plans to have at least 6 such models out by 2030.