Suzuki Plans To Invest In A New Manufacturing Plant By 2021

Suzuki Motor is planning to start building a new manufacturing facility in Gujarat by 2021. The company has plans to invest Rs. 9000 crore into a new plant which it will be setting up at Vithalpur in Gujarat, about 35 kms away from its already operational plant at Hansalpur. Suzuki has already started with the land acquisition process to establish its new plant. Maruti Suzuki has acquired 400 acres for the new manufacturing base and is in the process to take possession of 100 acres more while the government is expected to allot additional 60 acres to the company.

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The Vithalpur plant is expected to expand Maruti Suzuki's production capacity by 7.5 lakh units per annum. The facility will have three Assembly lines which will have a capacity to roll out 2.5 lakh vehicle each in a year. The company has estimated to invest around Rs 3000 crore for each assembly line. Prior to start construction of the new assembly unit, Suzuki will come up with two more assembly lines at its Hansalpur facility. Likewise, the new assembly lines even at the Hansalpur facility will have a production capacity of 2.5 lakh units each per annum taking the total production capacity of the plant to 7.5 lakh units annually. Suzuki has invested around Rs 15,000 crore in Gujarat so far.

Maruti Suzuki being India's largest carmaker at present accounts about 55 per cent of the market share. The addition of five more assembly lines will add 12.5 lakh of additional manufacturing capacity helping the company to achieve its target of selling over 22 lakh vehicles in India by 2024.

Source: Times News Network