Maruti Suzuki has begun work on a Rs 24,000-crore money growth strategy to set up a 10 lakh-per annum vehicle creation plant that would come external Haryana, sources said.
In order to achieve peak output, the company will invest Rs 18,000 crore in a second factory in Haryana that will produce 10,000 units per year at Kharkhoda (Sonipat). It intends to add more punch to tasks as it stays hopeful on vehicle deals in India, aside from arranging areas of strength for a to trades.
To facilitate fulfilling export commitments, sources informed TOI that the new facility is being planned in a location with good port connectivity.
One of the sources stated, "The board is likely to approve the investment plans soon, and groundwork will occur in the early parts of 2024 by the time the land would have been acquired."
Internal accruals will enable Maruti to meet the investment requirements. It has Rs 45,000 crore in cash on hand. As it seeks to reclaim half of the automobile market, the business sees rapid sales and production expansion as one of its most important strategies for preserving its position as a dominant player in India.
R C Bhargava, chairman of Maruti, did not respond to inquiries regarding the investment numbers or plans to relocate outside of Haryana. However, he stated that the company is considering a new factory with a 10,000-person capacity. He went on to say that the business wants to keep up with the expected growth of the Indian car market.
"We don't want to be seen napping," we say. Maruti, which had a request excess of 4. 1 lakh automobiles at the end of the fourth quarter of 2022-23, primarily due to a shortage of semiconductors, have factories in Haryana, and Suzuki's parent company operates a facility in Gujarat.
The company's Gurgaon and Manesar plants in Haryana can produce 15 lakh units annually (an additional 1 lakh units will be added to Manesar by 2024-2025), while Suzuki's Gujarat factory can produce another 7. 5 to 8 lakh units per year. Its accomplice Toyota furnishes the organization with 50,000 units through its processing plant in Karnataka.
The first batch of production at Sonipat is expected to begin in 2025, with 2. 5 million vehicles annually Bhargava expressed separated from petroleum, CNG, flex fuel and half and half vehicles, the organization will likewise pull out all the stops on electrics, with plans to drive in six green vehicles by 2030.
He stated that while the industry anticipates growth of between 5% and 7% for demand in 2023 and 2024, Maruti wants to grow faster.