Maruti Suzuki Allots ₹350 Billion For A New Gujarat Plant, Eyeing To Double Output By 2031

Maruti Suzuki, India’s leading automobile manufacturer, has revealed plans to invest a whopping ₹350 billion ($4.2 billion) to establish a second car plant in Gujarat, in addition to expanding an existing production line.

What Happened: As per a Reuters report, the president of Maruti Suzuki’s parent company announced this significant investment at the Vibrant Gujarat Global Summit. This venture will enhance the company’s annual manufacturing capacity in Gujarat to 2 million vehicles, marking a substantial increase from the current 750,000.

The new production line is expected to kickstart operations by the fiscal year 2027, with the new plant likely to follow suit two years later. Maruti Suzuki, popular for its Swift hatchback, is aiming to double its yearly production capacity to 4 million units by the 2031 fiscal year.

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Toshihiro Suzuki, president of Japan’s Suzuki Motor, announced at the event that the group will roll out its first battery electric vehicle from Maruti’s existing Gujarat plant by the end of this year. This car, slated for markets in India, Europe, and Japan, marks Maruti’s maiden export to its parent company’s home country.

By the year 2030, Maruti, which commands more than 40% of the market share in the world’s third-largest auto market, is planning to introduce six electric vehicle models.

Why It Matters: The hefty investment and ambitious plans of Maruti Suzuki underscore the company’s strategy to bolster its dominant position in the Indian auto market. The addition of a new plant and the expansion of an existing one will significantly boost Maruti’s production capacity, thereby enabling it to meet the growing demand for its vehicles.

The announcement of the company’s first electric vehicle also hints at Maruti’s commitment towards sustainable mobility and its readiness to tap into the burgeoning EV market in India and beyond. With a target to launch six EV models by 2030, Maruti is gearing up to lead the electric revolution in the Indian automobile industry.

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