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Suzuki to Invest $970 Million in Maruti's Gujrat Plant

Suzuki to Invest $970 Million in Maruti's Gujrat Plant

Snapshot: The investment comes in the development of a second production line at the Gujrat production facility, which is expected to be operational from 2019

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Suzuki Motor Corp, the parent company of Maruti Suzuki India Limited (MSIL), would, reportedly, invest nearly 100 billion yen ($970.97 million) in the development of a second production line at the company's Gujrat production facility. The investment would be made even before the production has took off, stated a Nikkei business daily report. The second line might debut a couple of years later in 2019, as the first line would be functional from early next year. The second line would wheel out the same number of vehicles as the first line.

Adding a second production line would enable the country's largest automaker to roll out 2 million vehicles annually. Maruti Suzuki has already indicated that once Gujrat manufacturing unit is ready to use, it would shift the Baleno's production there. In addition, several vehicle for export purposes could be developed at the facility due to Gujarat being a major port. Maruti had invested around 185 billion rupees ($2.77 billion) in the Gujrat plant in December 2015, while a month later Smt. Anandiben Patel, the then Chief Minister of Gujrat, laid the foundation stone alongside H.E. Mr. Takeshi Yagi, Ambassador of Japan to India, Mr. Rajnikant S Patel, Home Minister of Gujarat, Mr. Osamu Suzuki, Chairman & CEO Suzuki Motor Corporation, Japan, Mr. R C Bhargava, Chairman, Maruti Suzuki India and Mr. Kenichi Ayukawa, Managing Director, Maruti Suzuki India.

Maruti is learnt to setup six production line, with each line capable of developing 2.5 Lakh vehicles annually. Being spread over 640 acres, the new production facility would boast of an integrated suppliers’ park. It was recently learnt that new-generation Maruti Swift and Maruti Swift DZire would also enter production at the Gujrat facility by mid 2017. In addition, the company has plans to introduce the Wagon R-based budget-friendly 7-seater MPV in the Indian market, which would also be developed at Gujrat plant. The Gujrat facility would play an instrument role in Maruti's aim of achieving the sales milestone of two million vehicles annually by 2020.

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