By Vivek Dubey
Suzuki Motor Corporation (SMC) President Toshihiro Suzuki announced on Wednesday, January 10, two significant investments in Gujarat at the Vibrant Gujarat Global Summit 2024 in Gandhinagar, where Prime Minister Narendra Modi was also present.
The first investment pertains to Maruti Suzuki India Ltd establishing a new automobile production plant in Gujarat, which is expected to start operations in FY28–29 with an annual production capacity of 1 million units.
The total investment for the project, excluding land acquisition costs, is ₹35,000 crore, as per the company statement.
The second involves an infusion of ₹3,200 crore into Suzuki Motor Gujarat Private Ltd (SMG), a wholly-owned subsidiary of Maruti Suzuki. This investment will fund the establishment of a fourth production line, aimed at increasing the production of electric vehicles.
The new line is expected to commence operations in FY26–27. Upon completion of the fourth line, SMG’s annual production capacity will increase from the current 750,000 units to 1 million units.
Along with the new plant in Gujarat, the total annual production capacity of Suzuki in the state will reach 2 million units.
Maruti Suzuki has plans to secure a production capacity of approximately 4 million units in India by FY30–31, in anticipation of the country’s expanding automobile market.
The new plant in Kharkhoda, Haryana, is scheduled to start operations in 2025, along with the new plant in Gujarat and SMG’s fourth production line, which will contribute to achieving this milestone.
Suzuki also said the group’s first battery-electric vehicle will be rolled out from Maruti’s existing Gujarat plant by the year’s end.
In addition to being sold in India and Europe, the car will be exported to Japan, marking the first time for Maruti to export to its parent company’s home country.
Maruti, which commands more than 40% of the market share in the world’s third-largest auto market, plans to have six EV models by 2030.
Suzuki, speaking at the summit, said, “In this ever-growing country, we will provide a variety of sustainable mobility options by focusing on Indian customers.”
He also noted, “It is noteworthy that, as compared to 10 years ago, we expect 1.7 times in vehicle production and 2.6 times in export sales in the current fiscal year.”
The investment summit is part of Prime Minister Modi’s final push to attract more investment in the country before a national election in which he will fight for a third term and is widely expected to win.