Maruti to set up second manufacturing unit in Gujarat: Toshihiro Suzuki

Gandhinagar, Jan 10 (PTI) Maruti Suzuki India (MSI) will invest Rs 35,000 crore to set up its second manufacturing facility in Gujarat as it looks to ramp up annual production capacity to over 40 lakh units by 2030-31, Suzuki Motor Corporation President Toshihiro Suzuki said on Wednesday.

Speaking here at the 10th Vibrant Gujarat Global Summit (VGGS), Suzuki said the plant would have an installed production capacity of 10 lakh units per annum.

"We will invest Rs 35,000 crore for the construction of a second car plant in Gujarat which would produce another one million units per year," Suzuki said.

The new plant is expected to start operation in FY2028-29. Details of location and the models to be produced will be shared in due course.

As a result, the annual production capacity in Gujarat will be 2 million (20 lakh) units — 10 lakh units at Suzuki Motor Gujarat and 10 lakh units at the second new plant, he added.

Japanese auto major Suzuki Motor Corporation has around 58 per cent stake in MSI.

Suzuki noted that under the strong leadership and consistent support of Prime Minister Narendra Modi for manufacturing industries, the Indian automobile market has been expanding steadily.

As a result, India has become the third largest automobile market in the world, he noted.

"We have also scaled up production capacity substantially in India. 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," Suzuki said.

He stated that the first battery electric vehicle (BEV) from the Suzuki Group will be rolled out from Suzuki Motor Gujarat by the end of this year.

"We plan to sell this model not only in India but also export to Japan and European countries," he added.

Besides, in order to expand the BEV production in future, Suzuki Group will invest Rs 3,200 crore in Suzuki Motor Gujarat to add a new fourth production line which can produce 2.5 lakh units per year, Suzuki stated.

This will increase the annual production capacity of Suzuki Motor Gujarat from the current 7.5 lakh to 10 lakh units, he noted.

The fourth line is expected to start operation from FY2026-27 Suzuki noted that as far as reduction of greenhouse gas emissions is concerned, the group will focus on a multi-pathway approach.

"That means, in addition to vehicle electrification, we will offer multiple options such as compressed natural gas, biogas, bioethanol and green hydrogen," he stated.

Taking advantage of India's animal wealth, the automaker will start production of biogas from cow dung, he added.

Together with the National Dairy Development Board, and Banas Dairy, Suzuki has already started construction of four biogas plants in Gujarat, Suzuki said.

Suzuki Group will always work to provide a variety of sustainable customer-oriented mobility options, he added.

The country's largest carmaker Maruti Suzuki India is looking to add another 20 lakh units-production capacity by 2030-31 with about 28 different models in the market.

Currently, the auto major has a cumulative production capacity of around 22 lakh units per annum across its two manufacturing plants in Haryana and Gujarat.

The two plants in Haryana — Gurugram and Manesar — together roll out around 15.5 lakh units per annum.

Suzuki Motor Gujarat, a unit of the company, has also set up a facility in Gujarat with an installed production capacity of 7.5 lakh units per year.

Besides, the car market leader is already in the process of setting up a new manufacturing plant at Sonipat in Haryana with an investment of Rs 11,000 crore in the first phase.

The new plant's first phase with a manufacturing capacity of 2.5 lakh units per annum is expected to be commissioned by next year. PTI