“Maruti Suzuki Plans Rs 50,000 Crore Investment to Expand Production and Boost Exports”


Maruti Suzuki, India’s top automaker, is set to invest over Rs 50,000 crore by 2030-31, with a significant portion allocated to doubling production capacity, expanding exports, and supporting the growth of electric vehicles.

Maruti Suzuki Plans Rs 50,000 Crore Investment to Expand Production and Boost Exports

Maruti Suzuki Plans Rs 50,000 Crore Investment to Expand Production and Boost Exports

Maruti Suzuki India Limited (MSIL), the country’s leading automobile manufacturer, is preparing for substantial investments of more than Rs 50,000 crore by 2030-31, according to a recent report. A major portion of this investment, approximately Rs 45,000 crore, will be directed towards doubling the production capacity to 4 million vehicles per year. This ambitious expansion plan aims to meet the growing demand for Maruti Suzuki vehicles, both domestically and internationally.

In addition to enhancing production capabilities, Maruti Suzuki’s investment strategy includes improving the supply chain, expanding export infrastructure, strengthening marketing and sales teams, and supporting vendors within the automotive ecosystem. The company’s chairman, R C Bhargava, shared these details with Business Standard.

The first unit of the upcoming one-million-unit facility located in Haryana’s Kharkhoda is scheduled to commence production in early 2025. This facility will have an annual capacity of 250,000 vehicles, with plans to incrementally add a similar capacity each year until the plant reaches its full potential of producing 1 million vehicles annually. Talks are also underway to finalize the location for a second plant with an annual capacity of 1 million vehicles, expected to be operational by FY27.

Bhargava explained, “It takes an investment of Rs 22,000 crore-Rs 23,000 crore to set up a 1 million per annum plant. So you are talking about over Rs 45,000 crore (investment) just for the plants.”

This comprehensive investment plan not only covers production facilities but also substantial investments in scaling up sales and marketing efforts and enhancing the infrastructure to accommodate a significant increase in exports. Maruti Suzuki aims to export 750,000 vehicles by FY31, a substantial increase from the current 250,000.

The expansion plan outlined by the MSIL chairman is based on the assumption of an average annual growth in vehicle sales ranging from 6 to 6.5 percent until FY31. The plan also entails an increase in the number of models offered by Maruti Suzuki, growing from 17 to 27 by FY31, with six of these models being electric vehicles (EVs).

This capital expenditure plan includes investments for the production of EVs, aligning with Maruti Suzuki’s strategy to strengthen its presence and offerings in the rapidly evolving electric vehicle segment.

Bhargava expressed the possibility of even higher growth, potentially reaching 7 to 8 percent in the coming years, particularly if the small car market, which has seen relative stagnation or decline, begins to regain momentum. Maruti Suzuki’s investment is poised to reshape the landscape of India’s automotive industry and enhance its position in the global market.

Sources By Agencies

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