Maruti Suzuki Contemplates Over Second Manufacturing Plant in Gujarat; Thinking to Invest INR 35,000 Crore

• Published On: 17 January 2024
• 100 Views

Maruti Suzuki’s aim behind having a second production plant is to achieve production of 40 lakh passenger vehicle units annually.

Maruti Suzuki is mulling over to establish a second manufacturing plant in Gujarat region. The brand in lieu of these plans is in further talks with the state government to acquire the relevant land part, commented RC Bhargava, Chairman, Maruti Suzuki. In talks with PTI, he supposedly said the auto giant is planning to set up its brand-new production plant at an investment worth INR 35,000 Crore. 

The largest automaker in India aims to manufacture around 10 lakh passenger vehicle units in annual capacity at its new production facility, as it looks forward to boost overall production capacity to over 40 lakh units by 2030-31. Maruti Suzuki has signed the Memorandum of Understanding with the Gujarat government at the Vibrant Gujarat event for expanding its business in Gujarat. 

Read More: Maruti Suzuki Surged Prices of Entire Passenger Vehicle Range by 0.45 Percent

RC Bhargava, in regards to establishing a new production facility, said that though Gujarat is the optimal state required to build the plant, the right piece of land is needed to build the facility. “We, along with vendors, will make an investment of INR 35,000 Crore subject to the availability of the appropriate land because so far, we have not been able to locate and purchase the land required for expansion,” Bhargava said while adding further details, “You can’t expand without getting the land. So, that is the situation right now.” The auto giant is currently in discussions with the Gujarat government, but no land parcel or piece has yet been finalized to proceed ahead with its plan, he further stated. 

New Gujarat Production Plant Could Start Production in FY29

The brand-new plant of Maruti Suzuki in Gujarat could start manufacturing passenger vehicles from the financial year 2028-29, said RC Bhargava. When further questioned about if it would be practicable to achieve the goal of beginning production at this very new site in FY2028-29, he supposedly said, “It is feasible. There is still enough time for that.” He also added that the cause as to why Gujarat is the chosen state for having the brand’s new production facility is that the firm already has an established vendore base in the state itself. 

Furthermore, Bharagava said that the suppliers in Gujarat should extend their overall production capacity to meet the huge demand of automakers. “The production volume today is only 7.5 lakh units. To get the best economies of scale, it is desirable that these people (vendors) should have the options of expanding production at the existing site (state) and going up to 20 lakh units,” he added. 

Other than manufacturing passenger vehicles for the Indian market, the second plant in Gujarat would put a keen focus on export-specific vehicles as well, hinted Bhargava. He even said that the auto giant has set a goal of exporting 7.5-8 lakh units to overseas markets by the end of 2030-31 and being in the vicinity of Gujarat with further provide the brand some benefit in terms of saving transport costs.