Maruti Suzuki India Ltd is facing a “small delay” in finalizing the site for their new plant, which will have an annual capacity of 10 lakh units. The upcoming plant at Kharkhoda in Haryana is set to start production by 2025-26, reported the news agency PTI quoting RC Bhargava, Chairman of Maruti Suzuki India, who was speaking at the company’s annual general meeting (AGM) on Tuesday, August 27.
Chairman Bhargava restated the company’s belief in the low-cost and small-car segment’s necessity in India‘s economic and social conditions, saying that a temporary setback in demand is not changing Maruti Suzuki’s strategy. The company expects the small car segment’s demand to rebound in the next two years.
“We firmly believe that low-cost and small cars are necessary in our economic and social conditions. A temporary setback in demand is not going to change our strategy,” said the executive, as per the PTI report.
Maruti Suzuki shares closed 2.04 per cent higher at ₹12,496.60 after Tuesday’s trading session, compared to ₹12,246.55 at the previous market close.
“Our programme for expanding production is proceeding as scheduled; cars produced in the Kharkhoda plant will increase our sales in FY25-26. A small delay has taken place in finalising the site for a new one million unit expansion. As per the report, we are making our best efforts to make a quick decision in this matter,” said Bhargava.
In January 2024, the company’s global arm, Suzuki Motor Corporation President Toshihiro Suzuki, announced that Maruti Suzuki India is to invest ₹35,000 crore to build its second manufacturing facility in Gujarat. The facility will have a production capacity of 10 lakh units per annum, as per the report.
“India cannot just do with larger, more luxurious vehicles,” said Bhargava, highlighting that a large segment of people at the lower end who own scooters want a safer means of transport in the harsh weather times in the country, according to the report.
Government policies boost industry confidence
Chairman RC Bhargava also stated the significance of the government and its policies, which give the automotive industry confidence to sustain high growth.
“The continuity of the government and its policies to bring in faster economic growth with greater inclusivity and equity gives industry confidence of sustained high growth,” said Bhargava, quoted in the report. According to the report, the executive also highlighted that the industry and the government can work together in trust and confidence to achieve India’s goal of becoming a developed country in 2047.
Maruti Suzuki’s EV program:
RC Bhargava also discussed the company’s electric vehicle (EV) programme at the annual general meeting (AGM) on Tuesday, August 27. The company expects to release six EV models by the financial year 2030-31. The executive said the first EV model will go into production and sale in the coming few months and will be exported to Europe and Japan.
Bhargava said the company is committed to a cleaner environment and carbon neutrality. The company has widened its approach to achieve its goals by learning from other countries and, at the same time, looking into India’s specific resources and challenges, as per the report.
