The largest carmaker in the country plans to produce 10 lakh units of passenger vehicles annually at the new production facility, as it looks to ramp up its overall annual production capacity to more than 40 lakh units by 2030-31. Maruti Suzuki has inked a MoU with the Gujarat government at the Vibrant Gujarat event for expanding its business in the state.
Speaking about the new production plant, Bharagava reportedly said that while Gujarat is the preferred state for the new plant, the right set of land parcels is required to set up the facility. “We, along with vendors, will make an investment of ₹35,000 crore subject to the availability of the appropriate land because so far, we have not been able to locate and purchase the land required for expansion,” Bhargava noted while further adding, “You can’t expand without getting the land. So, that is the situation right now.” The auto company is having discussions with the Gujarat government, but no plot of land has yet been finalised, he stated.
New Gujarat plant could start production in FY29
Maruti Suzuki’s new plant in Gujarat could start producing passenger vehicles from FY2028-29, said Bharagava. When asked if it would be feasible to meet the target of commencing production at the new site in FY2028-29, he reportedly stated, “It is feasible. There is still enough time for that.” He also said that the reason why Gujarat is the preferred state for having the automaker’s new plant is that the company already has an established vendor base in the state.
However, Bharagav has stated that its suppliers in the state should expand their production capacity to meet the automaker’s demand. “The production volume today is only 7.5 lakh units. To get the best economies of scale, it is desirable that these people (vendors) should have the option of expanding production at the existing site (state) and going up to 20 lakh units,” he added.
Besides making passenger vehicles for the domestic market, the second plant would focus on export-spec products as well, hinted Bhargava. He noted that the automaker has set a target of exporting 7.5-8 lakh units to overseas markets by 2030-31 and being close to the ports in Gujarat will offer the automaker some advantage in terms of saving transport costs.
First Published Date: 11 Jan 2024, 09:23 AM IST