Maruti Suzuki, India’s leading carmaker is to invest $4.2 billion in a new facility, doubling production capacity and introducing electric vehicles. Market intelligence sees strong growth in the region in the near future, and Maruti Suzuki is to grow to a maturity level that will equip it to supply its incoming EVs to Japan; it’s parent company region.
Maruti Suzuki (Maruti), the Indian arm of Japanese automaker Suzuki motor corporation will build its second automotive manufacturing plant in Gujarat state. Maruti is now the leading carmaker in India; holding the position of market share leader as of the third quarter of 2022. The second vehicle production plant will draw an investment of 350 billion rupees ($4.2 billion), and ramp production capacity up by 167% to produce 2 million vehicles annually.
Gujarat production expansion: second production line in the works
Toshihiro Suzuki, president of Suzuki Motor Corporation revealed the Indian subsidiary will also add a second production line to its existing plant. The move reflects growing demand in the region.
Suzuki is going electric
President Suzuki also expressed that the group’s first EV, (the model eVX; an all-electric SUV) will be rolled out from the Indian subsidary’s existing plant in Gujarat by the end of 2024. The new EV Model out of India, will be sold in the region; in Europe; and interestingly is set to be exported out to Japan - supplying the parent company’s own region from its Indian subsidiary. Maruti is aiming to produce six EV models by 2030.
Speaking at the Vibrant Gujarat Global Summit 2024 concerning the steady and robust expansion of the Maruti arm, President Suzuki said: “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.”
The new plant in Gujarat is set to open around 2029, with the additional production line to the existing plant aiming to commence operations in the 2027 financial year.
President Suzuki added: “In this ever-growing country, we will provide a variety of sustainable mobility options by focusing on Indian customers.”
On a global scale, Suzuki intends to reach an annual production capacity of 4 million units by June 2031.
India on the rise
India’s market began a positive reversal from a 10-year low in 2020 of just 2.8m units to place third, ahead of Japan, in the global rankings behind the US and China with 4.4m units.
AMS reports: “While India and Japan are expected to battle out third place over the next few years, market intelligence firm LMC Automotive expects India to keep the bronze title for a sustained period from 2026 onwards.
By 2030, LMC expects Indian demand to reach 5.8m units, growing to nearly 7m in 2035. SUV demand is the key driver in the growing market, according to LMC, attracting lower and higher income buyers.”
The expansion of Maruti’s production capacity in the form of a second manufacturing plant in Gujarat, as well as the addition of a second line to its seminal plant indicates the rising tide of general demand in the region and beyond, as well as the steady swell demands for EVs reshaping production across regions.