Maruti Suzuki, India’s largest car manufacturer, has announced plans to double its production capacity by 2030. According to sources familiar with the matter, the company is expected to invest more than $5.5 billion to achieve this target and expand its market share both locally and internationally.
The automaker is planning to commission eight new assembly lines with an annual production capacity of 250,000 units each across two new facilities. These lines will help the company achieve an annual production capacity of four million vehicles by the end of the decade.
Sources familiar with the matter suggest that the company is likely to invest around ₹45,000 crore ($5.5 billion) in these expansion plans. The investment is expected to be made in a phased manner over the next few years.
The proposed expansion is part of Maruti Suzuki’s efforts to maintain its position as the leader in India’s highly competitive automobile market. The company currently holds a market share of over 50% in the passenger vehicle segment. With the new expansion plans, the company is expected to increase its lead over its rivals.
Maruti Suzuki is also looking to boost its exports, which have been impacted due to the COVID-19 pandemic. The company is aiming to increase its exports to around 20% of its total production capacity in the next few years.
The company is also expected to focus on electric vehicles (EVs) as part of its expansion plans. Maruti Suzuki has already launched its first electric vehicle, the WagonR EV, in a limited number of markets in India. The company plans to expand its EV portfolio in the coming years and has set a target of selling one million EVs annually by 2030.
Maruti Suzuki is also likely to benefit from the Indian government’s push for EV adoption. The government has set a target of achieving 30% EV penetration in the country by 2030. To achieve this target, the government has announced several incentives and schemes to promote EV manufacturing and adoption.
Maruti Suzuki’s plan to increase capacity is expected to bring in significant job opportunities, both directly and indirectly, in the automotive and manufacturing sectors. The company has already been a major job creator in India, employing over 17,000 people directly and creating over 200,000 jobs indirectly.
The plan to double capacity is also expected to boost India’s manufacturing and automotive sectors, contributing to the country’s overall economic growth. India is already a key player in the global automotive industry, with Maruti Suzuki being one of the leading manufacturers in the country. The company’s expansion plans are likely to make it an even more significant player in the global automotive market.
Maruti Suzuki has also been actively focusing on sustainable and eco-friendly manufacturing processes, with the aim of reducing its carbon footprint and promoting sustainable growth. The company has set a target of reducing its CO2 emissions by 30% by 2025 and has been investing in clean energy and sustainable manufacturing practices.
Maruti Suzuki’s expansion plans are expected to create several job opportunities in the country. The company is likely to hire thousands of employees to support its new facilities and production lines.
Maruti Suzuki has been operating in India for over three decades and has established itself as a household name in the country’s automobile sector. The company has consistently maintained its position as the leader in the passenger vehicle segment and has expanded its product portfolio to include a wide range of vehicles.
The company has also been at the forefront of promoting sustainable mobility in India. Maruti Suzuki has introduced several eco-friendly initiatives, including the adoption of cleaner production technologies and the promotion of green mobility solutions.
Overall, Maruti Suzuki’s expansion plans are expected to drive growth and create several job opportunities in the country. With its strong brand reputation and market position, the company is likely to continue to be a key player in India’s automobile sector.
