Maruti Suzuki to invest in new Gujarat plant | Allocates INR 3200 crore for EV production

In the Gujarat Global Summit held on January 10th, 2024, Maruti Suzuki India Ltd has entered into an understanding with the Government of Gujarat in the presence of Indian Prime Minister, Shri Narendra Modi and the President of Suzuki Motor Corporation (SMC), Mr. Toshihiro Suzuki, where Mr. Suzuki announced two major investments in the state of Gujarat.

In the first one, Maruti Suzuki India Ltd has agreed with Gujarat to build a new automobile production plant, slated to commence operations in FY2028-29. As per the official statement, the plant aims for an annual production capacity of 1 million units, backed by a total investment of INR 35,000 crore (excluding land acquisition costs). Specifics regarding location and models will be disclosed later.

Additionally, Maruti Suzuki will invest INR 3200 crore to establish a fourth production line in its subsidiary, Suzuki Motor Gujarat Private Limited (SMG), anticipating the rising demand for electric vehicles. The new line is scheduled to operate from FY2026-27, increasing SMG’s annual production capacity from 7.5 to 10 lakh units. Together with the new Gujarat plant, the total annual production capacity in the state will reach 20 lakh units, as claimed by the statement.

Maruti Suzuki aims to secure a production capacity of approximately 40 lakh units in India by FY2030-31 to accommodate the anticipated expansion of the automobile market. The new plant in Kharkhoda, Haryana (expected to start operations in 2025), the new plant in Gujarat, and the fourth production line of SMG will contribute to achieving this milestone.

Speaking at the Gujarat Global Summit, Mr. Toshihiro Suzuki stated, “In this ever-growing country, we will provide a variety of sustainable mobility options by focusing on Indian customers.”

Outline of new investments:

(The MoU is non-binding and subject to the approval of the Maruti Suzuki Board)

Also read: Maruti Suzuki to launch 6 EV models by FY30-31