Pune: Japanese automaker Suzuki Motor Corporation’s president Toshihiro Suzuki announced on Wednesday that the company will invest Rs 35,000 crore ($4.2 billion) to build a second car plant in Gujarat and will add a new production line at an existing plant.
The investments will see the company's annual production capacity jump to 2 million vehicles from 7,50,000 at present.
The additional production line is expected to start operating in the 2027 financial year and the new plant about two years later.
The maker of the popular car models Grand Vitara and Swift has said it wants to double its annual production capacity to 4 million units by the 2031 financial year. The new plant in Kharkhoda, Haryana which is planned to start operation in 2025, the new plant in Gujarat and the fourth production line of Suzuki Motor Gujarat will help achieve the milestone of 4 million.
The plans were announced during the Vibrant Gujarat Global Summit, where thousands of chief executives, investors and diplomats have gathered for the three-day biennial event in the presence of PM Narenda Modi seeking third term.
Suzuki also announced that the group's first battery electric vehicle will be rolled out from Maruti's existing plant in Gujarat by the end of the year. The company is investing Rs 3,200 crore to set up the 2.5 lakh unit electric vehicle production capacity.
Besides selling in India and Europe, the car will be exported to the parent company’s home country Japan.
Maruti, which commands more than 40 per cent market share in the world's third-largest auto market, plans to have six electric vehicle models by 2030.
Suzuki said Maruti had come a long way.
"It is noteworthy that as compared to 10 years ago, we expect 1.7 times in vehicle production and 2.6 times in export sales in the current fiscal year," Toshihiro Suzuki was quoted as saying to the media.
