Maruti Suzuki India (MSI) Ltd said that its new manufacturing facility in Haryana, the company’s third in the state, will reach a maximum production capacity of 10 lakh units per annum in the next eight years, with a total investment of Rs. 18,000 crores.
India’s largest carmaker’s search for a location for a new manufacturing facility has come to the fore recently after completing the land allotment process for an 800-acre plot at Kharkhoda in Haryana’s Sonipat district.
Considering the growing congestion in the area, discussions were on for some time with the Haryana government to finalize a location to shift Maruti’s Gurgaon manufacturing facility to the outskirts of the city, with an annual capacity of around 7 lakh units. .
The first plant with a manufacturing capacity of 250,000 vehicles per year is expected to be commissioned within the year 2025, subject to administrative approval. Investment will end in the first phase 11,000 crores.
The site will have room for capacity expansion to include more manufacturing plants in the future.
Notably, after setting up its first car plant in Gurugram in 1983, Maruti has steadily expanded its manufacturing footprint in Haryana by setting up a production facility at Manesar and a state-of-the-art R&D center in Rohtak.
The two plants in Haryana – Gurugram and Manesar, together produce about 15.5 lakh units annually.
Its parent company Suzuki Motor Corp has also set up a facility in Gujarat with an installed production capacity of 7.5 lakh units per annum after the third unit started production in April last year.
All units manufactured at Suzuki Motor Gujarat Pvt Ltd (SMG) are supplied to MSI.
Speaking at an event here to mark the formal announcement of land allotment to the auto major, Maruti President RC Bhargava said the 10 lakh production capacity at the Sonipat plant will help meet demand in both domestic and export markets.
“We expect, subject to favorable market conditions in India, we will be able to reach our peak production capacity at the Sonepat plant in eight years. The plant will then become the largest site in the country with a production capacity of one million cars. ” He mentioned.
Suzuki’s success in India has really strengthened the economic ties between India and Japan, Bhargava said.
He said that the success of MSI shows that there is no alternative but for governments and the private sector to work together in mutual trust.
“Unfortunately there are still people in the country who do not accept that this is the best possible way and they do not expect that the success of such industrial development and industrial management with the state government will result in further creation and more Competitive manufacturing, benefits everyone,” Bhargava said.
He said that poverty is removed and if both work together, new jobs are created.
Presently, Maruti has a cumulative production capacity of around 22 lakh units per annum at its two manufacturing plants in Haryana and the parent Suzuki Motor facility in Gujarat.