Suzuki’s Rs 35,000 Crore Project in Gujarat

In a groundbreaking announcement at the 10th Vibrant Gujarat Global Summit (VGGS), Suzuki Motor Corporation’s President, Toshihiro Suzuki, revealed the Japanese carmaker’s ambitious plan to invest a staggering Rs 35,000 crore ($4.21 billion) for the establishment of a second car plant in Gujarat, India. This monumental move by Maruti Suzuki India is set to reshape the automotive landscape, with implications that resonate far beyond the boundaries of Gujarat.

Unveiling the Vision: Rs 35,000 Crore Investment for a Mega Manufacturing Facility

Toshihiro Suzuki, in his address at VGGS, disclosed that Maruti Suzuki India is poised to inject Rs 35,000 crore into the construction of the second car plant in Gujarat. This facility is projected to boast an impressive installed production capacity of 10 lakh units per annum. This substantial investment reflects Suzuki’s unwavering commitment to expanding its presence in India, a key market for the automaker.

Doubling the Production Capacity: A Strategic Move

The announcement made it abundantly clear that the new plant in Gujarat is a strategic move to bolster Maruti Suzuki India’s annual production capacity. The infusion of Rs 35,000 crore signifies the company’s intent to add another one million units per year to its production output. Consequently, the total annual production capacity in Gujarat is set to reach an impressive two million units, with one million units each at Suzuki Motor Gujarat and the newly proposed second plant.

Suzuki Motor’s Dominance in Maruti Suzuki India

With Suzuki Motor holding a substantial 58 per cent stake in Maruti Suzuki India, the conglomerate is steering towards an ambitious goal. By 2030-31, Maruti Suzuki India aims to augment its production capacity by an additional 20 lakh units, offering a diverse range of 28 different models in the market. This vision underscores Suzuki Motor’s dominance in shaping the future trajectory of India’s automotive industry.

Current Production Landscape: Haryana and Gujarat Plants

Currently, Maruti Suzuki India operates two manufacturing plants, one in Haryana and the other in Gujarat, with a cumulative production capacity of around 22 lakh units per annum. The Haryana plants in Gurgugram and Manesar contribute significantly, rolling out approximately 15.5 lakh units annually. Meanwhile, Suzuki Motor Gujarat, an integral unit of the company, has an existing facility in Gujarat with an installed production capacity of 7.5 lakh units per year.

Unveiling Future Plans: New Manufacturing Plant in Sonipat, Haryana

In addition to the monumental investment in Gujarat, Maruti Suzuki India is in the advanced stages of establishing a new manufacturing plant in Sonipat, Haryana. This venture involves an investment of Rs 11,000 crore in the first phase alone. The new plant’s first phase is anticipated to have a manufacturing capacity of 2.5 lakh units per annum, with commissioning expected in the coming year.