In a strategic move, Maruti Suzuki, announced major investments during the Vibrant Gujarat Global Summit 2024. The plans include a new greenfield plant in Gujarat set to commence operations in FY2028-29, targeting an annual production capacity of 1 million units with an investment of $4.7 billion. Additionally, Maruti Suzuki will invest $470 million in a fourth production line in its subsidiary SMG, focusing on electric vehicle production. With these investments, Maruti Suzuki aims to achieve an annual production capacity of 4 million units in India by FY2030-31.
The Vibrant Gujarat Global Summit 2024 witnessed a significant stride in India's automotive landscape as Maruti Suzuki, in collaboration with the State of Gujarat, unveiled ambitious investment plans. The President of Suzuki Motor Corporation (SMC), Mr. Toshihiro Suzuki, disclosed two major ventures that underscore Maruti's commitment to sustainable mobility.
In the first announcement, Maruti Suzuki India Ltd formalized an understanding with the State of Gujarat for the construction of a new automobile production plant. Anticipated to initiate operations in FY2028-29, this greenfield plant aspires to achieve an annual production capacity of 1 million units. The investment earmarked for this venture totals $4.7 billion, excluding land acquisition costs. The precise location and the vehicle models to be produced will be disclosed in subsequent announcements.
Simultaneously, Maruti Suzuki unveiled plans for the establishment of a fourth production line in Suzuki Motor Gujarat Private Limited (“SMG”), its wholly-owned subsidiary. This $470 million investment aims to meet the escalating demand for electric vehicles, with the fourth line projected to commence operations in FY2026-27. Post-completion, SMG's annual production capacity will escalate from 750,000 units to 1 million units. Combining this expansion with the new Gujarat plant, the State's total annual production capacity is set to reach an impressive 2 million units.
With these strategic moves, Maruti Suzuki eyes a production capacity of approximately 4 million units in India by FY2030-31, anticipating the nation's burgeoning automobile market. The impending new plant in Kharkhoda, Haryana, scheduled to operate in 2025, aligns with Maruti Suzuki's comprehensive vision for growth.
Addressing the audience at the Vibrant Gujarat Global Summit, Mr. Toshihiro Suzuki emphasized the company's commitment to providing diverse sustainable mobility options for Indian customers in the dynamically evolving market.
Maruti Suzuki's dual investments in Gujarat, comprising a new greenfield plant and the expansion of its subsidiary SMG, reflect a visionary approach toward India's automotive future. With a focus on sustainability and meeting the demand for electric vehicles, Maruti Suzuki positions itself for substantial growth. The company's commitment to achieving a production capacity of 4 million units in India by FY2030-31 demonstrates its proactive stance in navigating the evolving automotive landscape.