Suzuki to invest ₹9,000 cr more in Gujarat

AHMEDABAD/MUMBAI: Suzuki Motor Corp. plans to invest at least ₹9,000 crore to build a new car factory in Gujarat, three people with knowledge of the matter said.

The investment will double Suzuki’s annual capacity in Gujarat to 1.5 million vehicles, underscoring the Japanese auto maker’s ambitious plans for India where its unit, Maruti Suzuki India Ltd, is the market leader.

The infusion of fresh funds would boost Suzuki’s combined investment in India to as much as ₹30,000 crore. Suzuki will use the funds to build three assembly lines with a total annual capacity of 750,000 vehicles, an engine Changing gears Suzuki’s investment will be used to build a new manufacturing facility in Ahmedabad district, close to its existing factory in the Hansalpur-Vithalpur area The capital will double the Japanese auto maker’s annual production capacity to

1.5 million units in Gujarat The move will create up to 30,000 direct and indirect employment opportunities in the state

Suzuki will end up investing up to ₹30,000 crore in building production infrastructure in India in the last five years

manufacturing unit, buy land, build a full-fledged research and development centre in Rohtak (Haryana) and set up a lithiumion battery unit in Gujarat in alli- ance with Denso Corp. and Toshiba Corp.

Suzuki’s sharpening focus on its biggest bastion, India, follows the auto maker’s decision to pull out of big markets such as the US.

Nikkei on August 23 reported that Suzuki is also in the process of pulling out of China, which would mean the company won’t be present in the world’s top two automobile markets.

In addition to the Gujarat plant, factories owned by Maruti in Haryana currently produce about 1.5 million units annually. The new expansion would therefore take Suzuki’s total production capacity in the country to 3 million units.

To be sure, Suzuki’s investment does not include those made by Maruti, which spends about ₹5,000 crore each year on capital expenditure and on purchasing land parcels across the country. The investments towards building the new factory will be made in Ahmedabad district, close to Suzuki’s existing factory in Hansalpur-Vithalpur area, said two Gujarat government officials.

“The company has recently purchased some private land where it plans further expansion. The overall capacity of Suzuki in Gujarat will reach 1.5 million vehicles once these two projects are complete,” said one of the two state government officials, requesting anonymity.

A Suzuki executive, who did not wish to be named, said the company will invest ₹9,000 crore in the state to expand capacity.

A spokesperson for Maruti did not respond to an email seeking comment.