Suzuki is planning to earmark Yen 100 billion, or Rs 5,679 crore, for the expansion of its manufacturing plant in Gujarat.
The manufacturing facility in question is located in in Hansalpur, Gujarat. It became operational earlier this year, and was commissioned in 2015 with an investment of Rs 3,041 crore. The plant currently has an annual production capacity of 2.5 lakh units, although this number could go up to 4.5 lakh units with the addition of a new production line. This will raise Maruti Suzuki’s annual capacity to 22.5 lakh units. The facility in Hansalpur is wholly-owned by Suzuki and the cars manufactured at the facility are sold to Maruti Suzuki India Ltd., which is then sold to customers in India.
In the previous financial year, Maruti Suzuki sold 15.68 lakh cars which accounts for 53 per cent of Suzuki’s global sales. While this translates into a 9.8 per cent growth, the company claims to being held back by capacity constraints. With the expansion of the Gujarat plant, Maruti Suzuki will finally be on track for registering a double digit growth.
