Maruti Suzuki's New Mega Plant Faces Minor Setback In Site Selection

Maruti Suzuki: Maruti Suzuki India is facing a slight delay in finalising the location for its new plant with an annual capacity of 1 million units.

Maruti Suzuki New Plant: Maruti Suzuki India is facing a slight delay in finalising the location for its new plant with an annual capacity of 1 million units. However, the upcoming facility at Kharkhoda in Haryana remains on schedule to begin production by 2025-26, according to company Chairman RC Bhargava.

During the company's annual general meeting, Bhargava also reaffirmed Maruti Suzuki's stance that low-cost, small cars are essential for India's economic and social landscape. A temporary dip in demand will not change the company's strategy, as it anticipates a revival in small car demand within the next two years.

"Our programme for expanding production is proceeding as scheduled, cars produced in the Kharkhoda plant will add to our sales in FY25-26. A small delay has taken place in finalising the site for a new one million unit expansion. We are making our best efforts to come to a quick decision in this matter," Bhargava said.

At the Vibrant Gujarat Global Summit in January, Suzuki Motor Corporation President Toshihiro Suzuki revealed that Maruti Suzuki India (MSI), the company's Indian subsidiary, plans to invest Rs 35,000 crore in establishing a second manufacturing facility in Gujarat. This new plant will have an annual production capacity of 10 lakh units.

In 2022, the company had announced setting up of a new plant at Kharkhoda with an installed peak capacity of 10 lakh units per annum at an investment of Rs 18,000 crore. This is the company's third plant in Haryana.

On entry-level cars, Bhargava said, "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."

He further said, "We are waiting that in the next year (or) two years, the small car market will revive...I think the nation has a need for small cars, and we are waiting, maybe by the end of FY25-26 we should have this (demand) coming back."