Maruti Suzuki to set up a new plant with production capacity to manufacture 10 lakh vehicles
2 min read . Updated: 27 Apr 2023, 01:25 PM IST
Premium- Maruti Suzuki India is investing ₹11,000 crore in the first phase of the Sonipat plant with an initial manufacturing capacity of 2.5 lakh units per annum, expected to be commissioned by 2025
Maruti Suzuki India (MSI), the country's largest carmaker said its board has given an in-principle approval for creation of up to 10 lakh vehicles per year capacity in the new plant, which is expected to come up in phases depending upon the market situation.
In a virtual press meet after the Q4 results, Maruti Suzuki Chairman RC Bhargava said the new facility would be in addition to its upcoming manufacturing plant in Sonipat in Haryana.
He noted that work on the new plant would be carried out simultaneously with the Sonipat plant.
MSI is investing ₹11,000 crore in the first phase of the Sonipat plant with an initial manufacturing capacity of 2.5 lakh units per annum, expected to be commissioned by 2025.
"We along with Suzuki looked at the estimated demand scenario over the next 8 years..it is expected that the Kharkhoda plant (in Sonipat) capacity will be fully utilised..so we decided to put up one million additional capacity," Bhargava said.
He noted that the company would take an internal accrual route to fund the new investment.
When asked about the expected investment on the new plant, Bhargava said it is yet to be finalised but hinted that it could be slightly higher that that on the Sonipat facility.
MSI's total existing production capacity is around 15 lakh units per annum in Manesar and Gurugram. It is also the sole beneficiary of 7.5 lakh unit capacity of Suzuki Motor Gujarat (SMG) under a contract manufacturing agreement.
Besides, it will be getting 10 lakh capacity from Sonipat plant.
On the company's electric vehicle programme, Bhargava said the company aims to have six fully electric models in its portfolio by 2030.
"The models would largely be in the SUV category," he noted.
In a virtual press conference, MSI Chairman RC Bhargava said the company performed better than last year despite witnessing various challenges like chip shortage, high commodity prices and inflation.
"Despite so many challenges, we have crossed ₹1 lakh crore turnover milestone last fiscal," Bhargava said.
He noted that the industry is expected to grow 5-7 per cent in current fiscal year and the company was looking to grow faster than that.
He added that the company fell short of 34,000 units from the 20 lakh sales mark last fiscal but will try to go past the target this year.
On chip shortage, Bhargava said the situation is expected to be better in the next three quarters of the current fiscal with shortages persisting in the first month of the ongoing quarter.
*With agency inputs