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Maruti Plans to Invest Rs.45,000 Crore to Double Capacity by FY31
30 August 2023: Maruti Suzuki is going to invest Rs.45,000 crore to double its production capacity from the existing 2.25 million units to 4 million units in the next seven years, with a new one million-unit facility in Haryana’s Kharkhoda and another one million unit plant at a new location.
Japan’s Suzuki Motor Co., the parent firm, plans to launch six battery electric vehicles in India by 2030, with the segment accounting for 15% of Maruti Suzuki’s India sales by the end of 2030.
“The era ahead of us is going to be very uncertain and challenging. Putting up the 2 million cars will cost us close to Rs.45,000 crore, depending on how inflation increases. At the moment, estimated costs are around Rs.45,000 crore for the two million cars. We have to put in more investments in our marketing and sales which we have been doing over the last eight, or nine years.”
“We have to develop infrastructure for dealing with the rising demand for our vehicles outside India. Export volume we expect to have by 2030-31 is around 800,000. A lot of infrastructure and support service will be needed to fulfil this demand, and all of it is going to require a lot of investment,” said Bhargava.
“Our market share went down recently because of factors relating not only to shortage of chips, but also because we were essentially a small-car manufacturer. Now we have to adjust to the fact that because of regulatory and other factors, the market for small cars is coming down and market for SUVs is going up.” he added.
“Our vehicles have been modified to meet the 20 norms (fuel blended with 20% ethanol). The alliance with Toyota that Suzuki has in Japan gives us access to all kinds of emerging technologies,” he said.
