NEW DELHI: Country’s largest carmaker Maruti Suzuki (MSIL) on Wednesday announced a Rs 38,200 crore investment in Gujarat to increase the production capacity of internal combustion engine (ICE) vehicles and battery-powered electric vehicles (EV).
The announcements were made on the opening day of the 10th edition of Vibrant Gujarat. Maruti Suzuki said a new plant in Gujarat is aimed to start operation in FY29 and in future, the annual production capacity from this is expected to become 10 lakh units. MSIL will be investing Rs 35, 000 (excluding land acquisition cost) in establishing this facility. The company said it will share the details of the location and the models to be produced in due course.
On boosting EV manufacturing capacity, it said they are establishing a fourth production line in its wholly-owned subsidiary Suzuki Motor Gujarat (SMG) by investing Rs 3,200 crore. The fourth line is likely to start operation from FY27 following which the annual production capacity of SMG will rise from 750,000 units to 10 lakh units. The additional 2.5 lakh units will be EVs.
“We are investing Rs 35,000 crore for the construction of the second car plant in Gujarat. The annual production capacity in the state of Gujarat will be 2 million units, namely, 1 million units at SMG and 1 million units at the second new plant,” said Toshihiro Suzuki, global CEO of Suzuki Motor Corporation. The CEO also informed that EVs from Suzuki Group will be rolled out from Suzuki Motor Gujarat by the end of the year and this model would be sold in India and exported to Japan and European countries.
Maruti has two facilities in India, one in Haryana and the other in Gujarat. The carmaker is ramping up production in both facilities as it plans to secure a production capacity of 40 lakh units by FY31. The new plant in Kharkhoda, Haryana, where the company is investing Rs 18,000 crore will start operation in 2025. On the back of new launches in the SUV segment, MSIL saw 8.5% growth in sales in 2023 to 17.08 lakh units.