India’s leading automaker, Maruti Suzuki, is set to make substantial investments totaling £4.2 billion in Gujarat. The plans include the establishment of a second car plant in the state and the addition of a new production line at an existing facility. This move is aimed at significantly increasing the annual production capacity in Prime Minister Narendra Modi’s home state.
Investment breakdown
Maruti Suzuki, a key player in India’s automotive market, will channel USD 4.2 billion into the construction of a second car plant in Gujarat and the introduction of a new production line at an existing facility. The ambitious investment is expected to boost the company’s annual production capacity in Gujarat from the current 750,000 vehicles to an impressive 2 million vehicles.
Timeline and expansion goals
The additional production line is scheduled to commence operations in the financial year 2027, with the new plant becoming operational approximately two years later. Maruti Suzuki, known for its popular Swift hatchback, has expressed its intention to double the annual production capacity to 4 million units by the financial year 2031.
Announcement at Vibrant Gujarat Global Summit
The comprehensive investment plans were unveiled during the Vibrant Gujarat Global Summit, a prestigious biennial event that draws thousands of chief executives, investors, and diplomats. This platform served as the ideal stage for Maruti Suzuki’s announcement of its strategic expansion initiatives.
Suzuki President’s insights
Toshihiro Suzuki, the president of Suzuki Motor in Japan, shared crucial details about the group’s foray into electric vehicles (EVs). He revealed that Maruti Suzuki’s first battery electric vehicle would roll out from the existing Gujarat plant by the year’s end. Notably, this EV is slated for export to Japan, marking a significant milestone as Maruti enters its parent company’s home market.
President Toshihiro Suzuki reflected on Maruti Suzuki’s remarkable journey, citing substantial growth in vehicle production and export sales. He highlighted the company’s evolution, pointing out a 1.7 times increase in vehicle production and a 2.6 times surge in export sales compared to a decade ago.
EV plans and market dominance
Maruti Suzuki, commanding over 40% market share in India’s auto industry, has laid out an ambitious roadmap for electric vehicles. The company aims to introduce six EV models by the year 2030, aligning with the global shift towards sustainable mobility.
Prime Minister Modi’s investment drive
The investment announcements at the summit align with Prime Minister Modi’s efforts to attract more investment in the country ahead of the upcoming national election. The £4.2 billion investment from Maruti Suzuki signifies a significant commitment to expanding production capabilities and contributing to India’s automotive sector’s growth.