Maruti Suzuki India Limited (MSIL), the top car manufacturer in India, is planning to invest over Rs 50,000 crore by 2030-31.
A significant portion of this investment, amounting to Rs 45,000 crore, will be used to double the production capacity to 40 lakh vehicles per year. The chairman of the largest car manufacturer in India, R C Bhargava, told the Business Standard.
The remaining investment will be put towards enhancing the supply chain, expanding export infrastructure (with a target of exporting 7,50,000 vehicles by FY31, which is a significant increase from the current 2,50,000), strengthening the marketing and sales teams, and supporting vendors in the ecosystem.
Production at the upcoming facility in Kharkhoda, Haryana is set to begin in early 2025, with the first unit having the ability to manufacture 2,50,000 vehicles annually.
The plant will gradually increase its capacity each year until it reaches the full capacity of 10 lakh vehicles.
In addition, discussions are ongoing to determine the location for a second plant, which is projected to have an annual capacity of 10 lakh vehicles and become operational by FY27, according to the report.
The capital expenditure plan includes the expected investments directed towards the production of EVs, aligning with the automaker’s strategy to bolster its presence and offerings in the rapidly evolving EV segment.
Bhargava expressed the possibility of even higher growth, potentially reaching 7 to 8 per cent in the coming years, particularly if the small car market, which has been relatively stagnant or in decline, begins to regain momentum.