Maruti Suzuki’s fifth plant to come up in Gujarat?
AHMEDABAD: Maruti Suzuki India Limited (MSIL), India’s leading car manufacturer, is gearing up to establish its fifth manufacturing facility. This development is part of MSIL’s strategic plan to double its production capacity to 4 million vehicles by 2030-31. Gujarat has emerged as a potential site for Maruti Suzuki’s fifth plant, as per sources government, quoted by TOI.
Key Developments:
- Investment and Industry Growth: The proposed plant in Gujarat represents a substantial investment of Rs 20,000 crore. This move is expected to significantly bolster the already flourishing automobile sector in the region.
- Production Capacity: The new facility is poised to produce approximately 10 lakh cars annually, mirroring the scale of MSIL’s upcoming plant in Kharkhoda, Haryana.
Progress and Plans:
- Early Discussions: Earlier this year, MSIL announced its intention to construct a fifth plant in India to manufacture 10 lakh cars per annum. Officials are currently engaging in discussions in Gandhinagar, exploring possibilities for the new facility.
- Location Prospects: The company is considering setting up the new plant close to the existing Suzuki Motors Gujarat (SMG) plant in Hansalpur. The government is also presenting alternative locations for the plant, including the Mandal-Becharaji Special Investment Region (MBSIR) and Hansalpur.
Acquisitions and Operations:
- Stake Acquisition in SMG: MSIL is on track to acquire a 100% stake in the SMG plant, currently owned by Suzuki Motor Corporation (SMC), its Japanese parent company. This acquisition, supported by nearly 99% of minority shareholder votes, is expected to complete by March 2024.
- Investment by SMC: SMC has invested Rs 12,680 crore in the Gujarat plant, making it one of the most significant investments in the state’s automobile industry.
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Current Status:
- Final Proposal Awaiting: The state government is awaiting a final proposal from MSIL regarding the investment and the precise location of Maruti Suzuki’s fifth plant.
- Continuous Supply and Operations: The Hansalpur plant, operational since 2017, supplies cars to Maruti Suzuki for both domestic and export markets. The acquisition will not affect production, logistics, sales, or costs.
Conclusion:
Maruti Suzuki’s fifth plant in Gujarat is poised to be a game-changer for the region’s automobile industry. With discussions underway and potential locations being evaluated, the project is a testament to MSIL’s commitment to expanding its manufacturing capabilities and contributing to the industry’s growth in India.
