Maruti Suzuki Gearing Up for Massive Growth with New Plants and Increased Production

   May 13,2024

Maruti Suzuki, India's leading car maker, is going full out with an expansion plan that aims to increase its production capacity almost- astronomically. They plan to increase production capacity at a phenomenal rate during the next four-five years with new plants. They are trying to exploit the growth in India's car market.



Investment for the Future: More Than Rs 1.25 Lakh Crore Up for Grabs

Maruti Suzuki has promised a record-breaking investment of more than Rs 1.25 lakh crore in the next seven years. Apart from domestic growth, it will make them an export powerhouse. The target is to export 7.5 lakh cars by 2030-31.

Double the Production: Scaling Up to New Heights

The prime motto of this expanse plan will be to almost double the production capacity of Maruti Suzuki. They target delivering a colossal output of four million units per annum by 2031. The growth will be so steep that an equal increase in production capacity from auto component suppliers is also needed.

Manufacturing Powerhouse: A New Plant Every Year

Maruti Suzuki plans to open a new plant almost every year. The first among these plants are in Kharkhoda, Haryana, and a possible second one could be in Gujarat. Their parent company, Suzuki Motor Gujarat, also plans to spawn its fourth plant in two to three years.

A Strategic Alliance: Leveraging India for Exports

Maruti Suzuki is banking on a strategic partnership with Toyota Motor Corporation. They will make India a manufacturing hub for exporting Toyota vehicles to leading emerging markets. This arrangement works both ways. Toyota will gain access to a much larger Indian market, and Maruti Suzuki will benefit from economies of scale, thus helping maintain or improve profit margins.

Also Read: Maruti Suzuki Offers Big Savings on Popular Cars This April

Investment in Two New Plants: Rs 45,000 Crore

The additional two million units of production capacity will receive an investment of Rs 45,000 crore just on the two new plants. It is needless to add that this would lead to similar investment from auto component suppliers to meet the rising demand from Maruti Suzuki.

Reaching New Sales Milestones: Two Million Units Sold Domestically

Despite the growth in the overall passenger vehicle market being only modest in the next year, Maruti Suzuki seems to be very bullish. They have guided their vendors to manufacture 2.396 million units in the current financial year, increasing the growth to more than 10%. Notably, they would be exporting around 3 lakh units, leaving over two million vehicles sold domestically—a first for Maruti Suzuki. According to industry sources, they intend to increase domestic sales further to three million units by FY27 and reach a level of four million by FY31.

Looking Ahead: New Cars and Electric Vehicles on the Horizon

Having strengthened its SUV portfolio, Maruti Suzuki is now focusing on its core compact car segment. The all-new Swift and Dzire can be expected to hit the roads in the current financial year. Further, it is planning to produce a larger sibling to the Grand Vitara. It is likely to be produced at their upcoming Kharkhoda facility. On the other hand, Maruti Suzuki is gearing itself up to enter the electric vehicle (EV) segment in the second half of the year. The initial production will be exported to Europe and Japan; however, this opens the gates for a future with electric vehicles made in India.

Maruti Suzuki's ambitious expansion plan marks a significant shift in the Indian automobile industry. Increased production capacity, new car launches, an impending foray into electric vehicles, and an ambitious growth plan in the upcoming years should set the stage for a radically different growth trajectory for Maruti Suzuki.

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