Maruti Suzuki India announces construction of new facility in Haryana

A subsidiary of the Japanese automaker Maruti Suzuki India will build a new car manufacturing plant in one of India’s most industrialized states, Haryana. Rs 11,000 crore has already been allocated for essential work. Interesting fact, according to the report, many Betwinner website users has shown interest in buying Maruti Suzuki. The expected capacity of the new production facility will be at least 250,000 vehicles per year. In May 2022, the Indian car manufacturer Suzuki announced that an agreement had been signed with the state of Haryana, and the land for the construction of a new enterprise had already been reserved. Its area is 800 acres. Initial funding aims to address the following issues:

  • Buy land.
  • Set up production lines.
  • Build supporting infrastructure facilities.

The company’s management notes that the land area was chosen with a reserve for the future: later it will be possible to build additional premises and workshops to increase the number of products. So far, the goal is clearly defined: 250,000 new cars per year. Additional funding for the project is not excluded.

We also recommend reading about Maruti Suzuki sets aside Rs 5,000 crore in capital expenditure for FY22.

Background and problems of existing enterprises Maruti Suzuki India

More recently, in April 2022, the news about the expansion of production facilities in Gujarat by the parent company Suzuki Motor slipped through the Indian automotive business. The message was a hint at the electrification of products under the Suzuki brand, which will soon be brought to life. In the meantime, the goals of the corporation in relation to India are clearly indicated:

  • The new plant is designed for the full production cycle of traction batteries for electric vehicles.
  • Existing capacities in Gujarat will be redirected from petrol to electric from 2025.
  • The drive to increase the share of electric vehicles in the company’s overall sales figures comes as India has set a goal of reaching 30% of sustainable electric vehicle sales in the car market by 2030.

A year earlier, in April 2021, Suzuki Motor Gujarat Private Limited (SMG) opened a vehicle manufacturing complex in Gujarat. The annual turnover of the enterprise is 750,000 units. At the same time, the reserved capacities can instantly raise the circulation to 1,000,000 pieces.

The plant in Gurgaon still remains a problematic enterprise. The production site is located in the center of a large industrial town. Urban development is so dense that logistical operations are always difficult: it is difficult for trucks to deliver raw materials and take out finished products.

Journalists have already asked the management of Maruti Suzuki India about whether the Gurgaon site will close. So far, the company has denied the information, referring to the fact that the capacities will satisfy the growing demand for cars until 2025. In the future, the issue of stopping will depend on the level of popularity of automotive products and, accordingly, the need for additional production and assembly sites.

As for the situation in the automotive market, the company does not intend to announce anything serious. The guidance only confirms the fact that the demand for budget-level vehicles is declining, and there is no full confidence in how this niche will develop in the future.

Facts and Figures Maruti Suzuki India

The production of Suzuki cars in India started at the plant in Gurgaon back in 1983. Maruti Suzuki India itself was founded ten years earlier, in 1973. Now every second car in India is one of the Suzuki models. The corporation is confidently pushing its competitors: 50% of sales of the Indian automobile market are accounted for by Suzuki.

The total capacity of Indian enterprises for the production of Suzuki at the moment is 2.2 million cars per year:

  • 1,550,000 vehicles are produced annually in the state of Haryana, at the production sites of Maruti Suzuki India in Gurgaon and Manesar.
  • 750,000 vehicles produced annually by a new factory in Gujarat launched by Suzuki Motor Gujarat Private Limited (SMG) in 2021.

The news of the construction of a new facility in Haryana came amid a general electrification of the brand. And, most likely, this is the next link in the chain of news about the development of Suzuki’s electric car production network, following the April news about investments in a traction battery plant.

Generally speaking, the EV business in India is booming and the company has mass-produced EV technology. In addition, the sharks of the Indian car market Tata and Mahindra have already begun to master the niche of popular cars.

Questions and answers

How many production sites of Maruti Suzuki India are currently in operation?

Two and both are located in the state of Haryana

How many Suzuki cars are produced annually in India?

2.2 million: 1.55 million from Maruti Suzuki India and 750,000 from Suzuki Motor Gujarat Private Limited

What year was Maruti Suzuki India established?

In 1973

What was the first Suzuki car produced in India?

Maruti 800.

Where was the first car manufacturing plant for Maruti Suzuki India located?

In Gurgaon.

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