Maruti Suzuki To Invest $5.5 Billion To Increase Production Capacity By 2030

The largest car manufacturer, Maruti Suzuki is likely to invest more than $5.5 billion to increase its production capacity to around four million vehicles a year by the end of 2030. The company aims to increase its local market share and boost exports.

Maruti Suzuki will commission 8 assembly lines with an annual production capacity of 2,50,000 units each across 2 new facilities, as per the Economic Times report citing people aware of the matter.

The construction of the first unit at Haryana's Kharkoda has commenced. The company currently has a total installed capacity of 2 million units in Gujarat's Mahesana and Gurugram's Manesar. Through an anonymous source, it was reported that that the cost outlay can go up depending on the timelines for the units' commissioning and cost escalation.

RC Bhargava, the chairman of Maruti Suzuki India told the Economic Times in an interview that the company has received approval to add capacity of up to one million units at the Kharkhoda plant and also in-principle approval for additional one million units at a new site. Of the total 4 million planned, one million will be from exports and original equipment manufacturers (OEM) sales.

The remaining capacity planned will enable the automaker to achieve its 50 per cent market share, up from 41 per cent in 2022-23. RC Bhargava said: "Our intent is to get back our market share as close as possible to the 50 per cent we have had in the past". The company is also planning a series of launches in the SUV and electric vehicle (EV) segments.

The company's digital presence share has has grown to 30-32 per cent of the overall spending now, Maruti Suzuki India Executive Director for Marketing Ram Suresh Akella told PTI on the sidelines of an event hosted by social media giant Meta in Mumbai.