In a major strategic move, Maruti Suzuki, the leading Indian automotive manufacturer, has announced a staggering investment of ₹382 billion ($4.6 billion). Further, to expand its manufacturing capabilities in the western state of Gujarat. The revelation came during the Vibrant Gujarat Summit. Especially, where Toshihiro Suzuki, the global CEO of Suzuki Motor Corp, outlined the ambitious growth plans.
Mega Investment for New Plant
Nearly ₹350 billion, is earmarked for the construction of a cutting-edge plant. Basically, with an annual production capacity of 1 million units. Anticipated to commence operations in the fiscal year 2028-29. Further, this plant is poised to play a pivotal role in meeting the burgeoning demand for Maruti Suzuki vehicles.
Boosting Capacity at Gujarat (SMG) with investment of $4.6 Billion by Maruti
Suzuki Motor Gujarat (SMG) shall be able to increase the production capacity based on the additional reserved ₹32 billion. SMG shall introduce a fourth production line with a capacity of 250,000 units per year. Further, scheduled to be operational in the fiscal year 2026-27.
Electric Vehicle Focus
With sustainability in mind, the new production line at SMG is strategically aligned to support the increased manufacturing of battery-operated electric vehicles (EVs). This move reflects Maruti Suzuki’s commitment to addressing the growing demand for eco-friendly mobility solutions.
Gujarat’s Soaring Production Capacity
Upon the completion of these new plants, Maruti Suzuki’s overall production capacity in Gujarat will experience a remarkable surge. Further, escalating from the current 750,000 units to an impressive 2 million units.
Global Electric Vehicle Rollout
Maruti Suzuki has set an ambitious target to roll out its first battery-operated EV from the SMG facility in Sanand by the end of the calendar year 2024. Toshihiro Suzuki envisions exporting this model not only within India but also to Japan and European countries.
National Expansion Beyond Gujarat
In addition to its operations in Gujarat, Maruti Suzuki continues to operate in the northern state of Haryana. Especially, where it currently produces around 1.45 million units annually. Further, in the process of establishing a new manufacturing plant with a capacity of 250,000 units per year in Haryana, expected to be commissioned by 2025.
Vision for Future Growth
With an eye on the future, Maruti Suzuki aims to secure a production capacity of approximately 4 million units in India by the financial year 2030-31. This strategic vision is aligned with the anticipation of significant expansion in the country’s automobile market.
As Maruti Suzuki solidifies its dominant position with a market share exceeding 40% in India’s auto industry. Further, Japan’s Suzuki Motor Corp remains a key player, holding a controlling stake of 56.2% in the company. Institutional investors get the remaining 43.8% ownership.