Maruti Suzuki to expand production to upto 2.5 million cars annually by 2030
Japanese carmaker Suzuki Motor Corp. plans to expand production capacity to upto 2.5 million cars a year by 2030 as it plans to maintain its dominance in India.
The capacity expansion will be divided into two phases: Suzuki will first expand its Gujarat plant by adding capacity to make 750,000 cars starting 2020 and then in the second phase, it will build a new plant, Suzuki’s fourth after those in Gurgaon, Manesar and Gujarat. The location of the new factory has not been identified. It is planned to have a capacity of approximately 1.5 million units and is expected to be announced by 2025.
By 2025, Maruti Suzuki aims to sell 3 million units.
Suzuki Motor Corp. has recently allocated $1.5 billion for its research and development (R&D) and most of it will be spent on Maruti Suzuki to maintain its 50% market share amid increasing competition from European and Korean manufacturers. The money will be used to upgrade Maruti Suzuki’s existing models to Bharat Stage VI emission norms by 2019, to develop an entire range of hybrid vehicles and other alternative technologies. The company would also invest in developing electric vehicles and related infrastructure like charging stations and making other components of electric vehicles. In a first, Suzuki has also restructured its organization globally to include a new department to develop electric vehicles.
In FY18, Suzuki’s net sales grew by 18%, while operating profit jumped by 40% to 374.2 billion yen. Consequently, net income increased by 34.9% to 215.7 billion—the highest since 1977.