Gandhinagar, May 17: With an aim to double the production capacity and effective increase in employment, Maruti Suzuki will soon invest Rs 6,000 crore at its Gujarat factory premises. Notably, the investment will be made within two years after which Maruti Suzuki’s investments in Gujarat will reach to nearly Rs 9,000 crore.
The boost in investment in Maruti Suzuki will lead to enhance the capacity of production that directly will reach to 5 lakh units annually. This mega investment will also enable Maruti and Suzuki's cumulative annual production capacity in India to move beyond 20 lakh units from 15.5 lakh units at Maruti's two factories in Haryana and 5 lakh units at Suzuki's plants in Gujarat.
Maruti Suzuki’s MD and CEO Kenichi Ayukawa said the company expects double-digit growth in 2017-18 on the back of demand for new models and expansion of the Indian economy. Models like the Brezza mini SUV and the Baleno hatchback will be produced majorly in Gujarat plant.
Interestingly, Maruti Suzuki, last year sold 15.68 lakh vehicles at a growth rate of 10%. Maruti and Suzuki have been boosting investments in India as the company aims at a sale of 2 million cars by 2020. Importantly, Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile manufacturer in India.
It is a 54.2%-owned subsidiary of Japanese automobile and motorcycle manufacturer Suzuki Motor Corporation. As of January 2017, it had a market share of 51% of the Indian passenger car market. Maruti Suzuki manufactures and sells popular cars such as the Ciaz, Ertiga, Wagon R, Alto, Swift, Celerio, Swift Dzire and Omni.