Synopsis
On March 26, Maruti Suzuki Ltd announced a Rs 7,410 crore investment for its third factory in Kharkhoda, Haryana, aimed at boosting production capacity to satisfy rising domestic demand and exports. The new plant is expected to commence operations by 2029.Key Takeaways
- Maruti Suzuki investing Rs 7,410 crore in Kharkhoda.
- New factory to produce 2.5 lakh vehicles annually.
- Production starts by 2029, total capacity to reach 7.5 lakh.
- Investment from internal accruals for growth.
- Focus on expanding EV lineup by FY30.
New Delhi, March 26 (NationPress) India's largest car manufacturer, Maruti Suzuki Ltd, revealed on Wednesday a significant investment of Rs 7,410 crore to establish a third manufacturing facility in Kharkhoda, Haryana. This initiative aims to enhance production capacity to address the increasing domestic demand alongside exports.
The company's Board of Directors convened on Wednesday and approved the development of the new plant at Kharkhoda, which is projected to have a production capacity of 2.5 lakh vehicles annually, as stated in a stock exchange announcement by Maruti Suzuki.
Production at the new factory is anticipated to commence by 2029, which will elevate the total output capability at Kharkhoda to 7.5 lakh vehicles per year.
This investment will be sourced from internal accruals. The Kharkhoda site is a greenfield project, with the first plant having initiated commercial operations in February of this year, focusing on the production of the compact SUV Brezza.
Suzuki Motor Corporation of Japan, the parent organization of Maruti Suzuki India, recently introduced a new mid-term plan, indicating a strategic rethink due to a declining market share in India and the rapidly expanding electric vehicles sector.
In their new mid-term plan spanning 2025-30, the company has identified India as its “most crucial market.” Maruti Suzuki aims to establish a manufacturing capability of producing 4 million vehicles annually to reclaim a 50 percent market share and utilize India as a global export hub.
The automotive giant intends to broaden its electric vehicle lineup, starting with the e-Vitara, and plans to unveil four new EV models by FY30 in a segment where competitors like Tata Motors and Mahindra & Mahindra already offer diverse electric vehicle options in India.
In the meantime, Maruti Suzuki has reported a 16 percent rise in net profit to Rs 3,727 crore for the October-December quarter of the current fiscal year, compared to Rs 3,206.8 crore from the same period last year.
The company’s operational revenue surged by 15.7 percent year-on-year to Rs 38,764.3 crore, driven by increased sales from Rs 33,512.8 crore in the corresponding quarter of the prior year.
