The company is planning to increase production capacity to 30 lakh units with 4th plant.
Suzuki Motor Corporation (SMC) is going to invest Rs 9,000 crores by 2021 in India. The company will be investing more into the company’s production facility in Gujarat, where Maruti cars are being manufactured. This new investment will be used to build company’s second plant in Gujarat and the 4th plant in India where cars are manufactured.
Suzuki manufacturing plants in Gujarat produce Maruti cars, and sell them to Maruti Suzuki India as well as export abroad. With this fresh investments, Suzuki’s combined investment in India will be scaled to Rs 30,000 crores.
The investment will also be used to build three assembly lines with a total annual capacity of 7,50,000 vehicles, an engine manufacturing unit in Gujarat. It will also allow the company to develop a fully equipped research and development center in Rohtak, Haryana.
The company also plans a lithium-ion battery unit in Gujarat in association with Denso Corp and Toshiba. This battery plant will deliver batteries to future electric cars. Suzuki aims Maruti electric car sales in India to touch 15 lakh per annum by 2030.
The new factory in Gujarat will be set up close to the existing plant in Hansalpur. This will allow the company to boost sales not only in domestic markets but also enhance export operations to countries such as Europe, Japan and Africa. SMC has also acquired private land in Gujarat for further expansion and once these two projects are complete, overall capacity in Gujarat alone will reach 1.5 million (15 lakh) units thus making Gujarat the biggest hub for Suzuki in India; both where investments and capacity are concerned.
Suzuki routes investments into Gujarat via Suzuki Motor Gujarat under contract manufacturing agreement with Maruti Suzuki wherein it supplies cars to the latter at cost price. Being the biggest hub for Suzuki, the company offers direct employment to around 4,000 persons in the state while overall direct and indirect employment will extend to 25,000-30,000 persons in the future. RushLane