Suzuki Doubles Down on India: Whopping Rs 35,000 Crore Investment Creates 2nd Gujarat Plant

10 Jan 2024 , 02:18 AM

Toshihiro Suzuki, president of Suzuki Motor Corporation, announced on Wednesday that Maruti Suzuki India (MSI) would invest Rs 35,000 crore to establish its second manufacturing site in Gujarat as part of its plan to increase yearly production capacity to above 40 lakh units by 2030–31.

Speaking at the 10th Vibrant Gujarat Global Summit (VGGS), Suzuki stated that the plant would be able to produce 10 lakh units annually with its installed capacity. ‘We will invest Rs 35,000 crore for the construction of a second car plant in Gujarat which would produce another one million units per year,’ Suzuki stated.

In FY2028–2029, the new factory is anticipated to begin operations. We’ll provide geographical information and details about the models to be made later. Consequently, he said, Gujarat will have an annual production capacity of 2 million (20 lakh) units, of which 10 lakh will be produced at Suzuki Motor Gujarat and 10 lakh at the second new factory.

MSI is owned by the big Japanese automaker Suzuki Motor Corporation to the tune of about 58%.

Suzuki also out that the Indian car industry has been growing as a result of Prime Minister Narendra Modi’s steadfast leadership and unwavering support for the manufacturing sector. He pointed out that as a result, India has grown to be the world’s third-largest vehicle market.

Additionally, we have significantly increased our production capacity in India. Notably, we anticipate 1.7 times as many vehicles to be produced and 2.6 times as many export sales in the current fiscal year as we did ten years ago,’ Suzuki stated.

By year’s end, Suzuki Motor Gujarat will launch the Suzuki Group’s first battery electric vehicle (BEV), according to his statement.

‘We plan to sell this model not only in India but also export to Japan and European countries,’ he stated.

In addition, Suzuki announced that the Suzuki Group will spend Rs 3,200 crore in Suzuki Motor Gujarat to establish a new fourth manufacturing line that can create 2.5 lakh BEVs annually in order to increase the company’s future BEV production. According to him, this will enable Suzuki Motor Gujarat to raise its yearly production capacity from the present 7.5 lakh vehicles to 10 lakh units.

It is anticipated that the fourth line will begin operations in FY2026–27. Suzuki stated that the organisation will concentrate on a multi-pathway approach when it comes to reducing greenhouse gas emissions. ‘That means, in addition to vehicle electrification, we will offer multiple options such as compressed natural gas, biogas, bioethanol and green hydrogen,’ he said.

He continued, ‘The automaker will begin producing biogas from cow dung, taking advantage of India’s animal wealth.’ Suzuki added that work on four biogas facilities in Gujarat has already begun in collaboration with Banas Dairy and the National Dairy Development Board.

He continued, saying that Suzuki Group will constantly strive to offer a range of sustainable, customer-focused transportation options. Maruti Suzuki India, the biggest automobile manufacturer in the nation, plans to increase its production capacity by another 20 lakh units by 2030–2031 and offer roughly 28 distinct models.

With its two manufacturing facilities in Gujarat and Haryana, the automaker can currently produce over 22 lakh vehicles annually overall. Together, the two Haryana facilities in Manesar and Gurugram produce over 15.5 lakh units annually. The company’s subsidiary, Suzuki Motor Gujarat, has also established a plant in Gujarat with an installed production capacity of 7.5 lakh units annually.

Furthermore, the market leader in automobiles is currently in the midst of establishing a new production facility in Sonipat, Haryana, with an initial expenditure of Rs 11,000 crore. By the following year, the first phase of the new factory, which will have an annual production capacity of 2.5 lakh units, should be put into service.

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