Maruti Set To Increase Production Capacity to 30 lakhs car per year with new factory

Suzuki Motor Corporation, the parent company of Maruti Suzuki, the nation’s largest carmaker, is set to increase investment into its facility in Gujarat as it looks to ramp up production at the site. According to a report by Rushlane, the Japanese carmaker will be upping its combined investment in India to Rs 30,000 crore.

The publication claims that the new investments will be used by Suzuki to build its second plant in the state of Gujarat, which will also be used to produce cars for Maruti Suzuki. The new plant will bring the total number of Maruti Suzuki production facilities in India to a total of four with the other three facilities being Gurgaon, Manesar and the current Gujarat facility. This will also increase the total production numbers for Maruti in India to 30 lakh units per annum.

Rushlane claims the increased investment will be used by Suzuki in Gujarat to build three assembly lines with a total annual capacity of 7.5 lakh vehicles along with a brand new engine manufacturing facility. The publication claims that Suzuki Motor Corporation will build its new production facility close to its existing setup in Hansalpur, Gujarat. This will allow the new facility access to not only increase domestic sales but also ramp up exports to international markets thanks to easier access to ports that the Gujarat facility allows. Suzuki has already acquired a chunk of private land in the state for its expansion plans.

Rushlane also states that Suzuki plans to make a lithium-ion battery production unit in Gujarat. The battery production facility, which will see two other Japanese companies Denso and Toshiba partner up with Suzuki, will be used to provide batteries for future electric vehicles from Maruti Suzuki. Maruti Suzuki future EV sales target for 2030 is said to be 15 lakh units per annum.

Once the new production facility and EV battery unit are completed, the overall production capacity in Gujarat is set to hit 15 lakh units per annum, which will make the state the biggest manufacturing hub for Maruti Suzuki in the country.

Rushlane also claims that the company will also use part of the new investment to build an all-new research and development facility in the city of Rohtak in Haryana.

Suzuki’s current production facility in Gujarat produces the new 2018 Swift and the Maruti Vitara Brezza for Maruti Suzuki India. Late last month, Maruti had revealed that it was ramping up production of the Vitara Brezza, India’s current best-selling SUV to help the company meet with the increased demand for the compact sports utility vehicle. Thanks to the Suzuki facility now working at full capacity, production numbers of the Vitara Brezza were raised to 94,000 units in the first seven months of the current fiscal year, which was an increase of 10 percent.