Maruti Suzuki intends to increase output with an investment of Rs 45,000 crore

29 Aug 2023 , 03:06 PM

The top automaker in the nation, Maruti Suzuki, intends to use its current cash reserves to produce a total of 4 million cars by FY2030–31.

According to information provided by Maruti Suzuki Chairman RC Bhargava during the Annual General Meeting (AGM), the firm, which is starting its third expansion phase, plans to increase its production capacity by 2 million extra automobiles over the course of the next eight years.

Additionally, Bhargava expressed the goal to more than double revenue during this time. In contrast to the 40-year period it previously took to reach a similar output volume, this ambitious trajectory is shorter.

Bhargava emphasised the need for corporate reorganisation due to the company’s rapid growth. Owning the Gujarat production site is a crucial step in this direction, giving Suzuki Corporation a 1.8% equity, which is considered modest in comparison to Maruti’s anticipated gains.

Bhargava discussed the justification for Maruti’s purchase of Suzuki Corporation’s Gujarat facility and recalled the first opposition to the contract manufacturing plan in 2013. However, Maruti’s calculated action paid off, as the factory started operating in 2015.

Bhargava pointed out that Maruti’s 3.0 growth phase will include significant investments in cutting-edge technologies including electric vehicles (EV), compressed natural gas (CNG), ethanol, and CBG. This is in line with the business’s global efforts to uphold higher standards of safety.

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