Maruti Suzuki Supercharges India Growth Story With Mega Rs 35,000 Crore Gujarat Plant

Dhaneshwar Prasad

Maruti Suzuki India Limited, which makes more cars than any other company in India, has big plans for a new plant in Gujarat that will cost Rs 35,000 crore to build. This shows that the company wants to ride India’s growth story over the next ten years, when demand in India will be high.

The planned new plant in Gujarat will be able to make 10 lakh cars every year. This will bring Maruti Suzuki’s total output from Gujarat to 20 lakh cars every year.

It will add to the production of the company’s existing plants in Haryana. Maruti Suzuki is speeding up its production to meet the rapidly rising demand in India and other countries. It is doing this by increasing the capacity of all of its plants.

Expanding Gujarat Footprint

With the opening of the new plant in Gujarat, Maruti Suzuki shows that it has faith in the state and wants to grow its manufacturing presence there.

This year, the company’s first plant in Gujarat, which opened in 2017, made more than 30 lakh cars. When it first opened, the unit could only make 7.5 lakh cars per year. Now, it makes over 10 lakh cars per year, including types like the Swift, Baleno, Dzire, and Fronx.

Gujarat is focused on exports, as shown by the fact that almost half of its output is sent abroad. Exports will get a new boost from the new plant.

Supporting Government’s EV Push

The Gujarat facility is important because it will help India’s move toward electric mobility because it will also make battery electric cars, which should start in 2024 or 25.

This fits right in with the government’s push for electric vehicles (EVs) and goal of having 30% of private cars be EVs by 2030.

As the company in charge, Maruti Suzuki needs to lead India’s move to more environmentally friendly transportation. The Gujarat plant gives it the strength to help with this change.

Along with EVs, Maruti is also getting ready to solidify its position as the leader in India’s CNG market, which it created more than ten years ago.

Because CNG is good for the economy and the environment, the company wants to sell more than 500,000 CNG cars by 2025 to meet rising demand.

Because Gujarat has a lot of natural gas, the plant there will probably be very important to Maruti’s CNG plans.

Confidence in Long-Term India Growth Story

Maruti Suzuki has a lot of faith in India’s long-term growth in the car industry, as shown by its Rs 35,000 crore move to Gujarat and increased capacity across all of its plants.

Over the next ten years, people will have more money to spend, and compared to other growing markets, not many people own cars. This will make more people want to buy cars. More people moving to cities and better roads are two things that help growth go through the roof.

Because it is the market leader, Maruti Suzuki has put its best foot forward to ride this wave of spending and make money for both its customers and its shareholders. Moving around in India looks like it will get better in the future.

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Former Sony professional turned multi-business owner and stock investor, Dhaneshwar leverages his MBA to produce market, IPO and biz content and personal investments on
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