Maruti Suzuki expands! Rs7,410 crore investment for 3rd plant in Haryana
Japan's Suzuki Motor Corporation, parent of Maruti Suzuki India, had last month unveiled a fresh mid-term plan with a "rethink" in strategy as "the business environment.
New Delhi: India's biggest automaker, Maruti Suzuki Ltd, on Wednesday said it would invest Rs 7,410 crore to construct a third plant at Kharkhoda in Haryana, to increase production capacity to cater to growing domestic demand as well as exports.
Boosting Production
The Board of Directors of the company in a meeting held on Wednesday sanctioned setting up a third plant at Kharkhoda that will have a production capacity of 2.5 lakh vehicles annually, Maruti Suzuki informed through a stock exchange filing. The plant is likely to begin production by 2029 increasing the overall capacity at Kharkhoda to 7.5 lakh vehicles annually. The investment will be financed by way of internal accruals. The Kharkhoda plant is a greenfield facility where the first factory commenced commercial production in February this year to make the compact SUV Brezza. The firm, in its mid-term plan 2025-30, has targeted India as its "most important market." Maruti Suzuki wishes to create a production capacity of manufacturing 4 million cars annually to reclaim a 50 per cent market share in India and use the country as a global export hub too.
Accelerating Progress
The car giant is set to widen its electric vehicle portfolio from the e-Vitara onward, and targeting to introduce four new EVs by FY30 in a market where its competition such as Tata Motors and Mahindra & Mahindra has already a diverse EV portfolio on offer in India. Meanwhile, Maruti Suzuki saw a 16 per cent growth in net profit to Rs 3,727 crore in the October-December quarter of the current fiscal compared to the corresponding period last year's figure of Rs 3,206.8 crore.
