Maruti Suzuki Raises Production Capacity By 1 Lakh Units At Manesar Plant

Maruti Suzuki India Ltd. has increased the production capacity at its Manesar facility by one lakh units amid record sales in the world's third-largest automotive market.

India's largest carmaker by volume has commissioned a new assembly line capable of manufacturing one lakh cars per annum, according to an exchange filing on Monday. That increases the total installed capacity of the facility to nine lakh units per annum.

“We aim to nearly double our capacity to four lakh vehicles per annum over the next 7-8 years, and this capacity addition of 1,00,000 vehicles per year is a step towards this goal,” Hisashi Takeuchi, chief executive officer at Maruti Suzuki, said in the statement. “It will help us serve our customers faster and enhance our overall capability to manufacture up to 23.5 lakh units per annum.”

Maruti Suzuki currently manufactures the Brezza, Ertiga, XL6, Wagon R, DZire, S-Presso, Ciaz and Celerio cars at the Manesar facility.

The capacity expansion follows the carmaker’s plans to set up a second plant in Gujarat.

At the Vibrant Gujarat Global Summit 2024 in January, Suzuki Motor Corp. announced that its Indian subsidiary plans to invest Rs 35,000 crore to set up a second manufacturing plant in the western state.

“We will invest Rs 35,000 crore for the construction of a second car plant in Gujarat, which would produce another 10 lakh units per year,” Toshihiro Suzuki, president of Suzuki Motor Corp., said at the investors summit. The new plant is likely to go onstream in Fiscal 2029. Details of the location and the models to be produced are yet unknown.

Essentially, by the end of this decade, Maruti Suzuki will produce 20 lakh units every year in Gujarat, including the 10 lakh cars planned at Suzuki Motor Gujarat—the Halol facility which Maruti Suzuki took over in September last year.

Suzuki also plans to expand its EV manufacturing at the Halol facility. The Japanese firm plans to invest Rs 3,200 crore to add a fourth production line at Suzuki Motor Gujarat. That will increase the total installed capacity of the plant by 2,50,000 units to 10 lakh units.

Maruti Suzuki, at present, operates two manufacturing plants in the national capital region centred on Delhi—one each at Gurugram and Manesar in Haryana—producing 15.5 lakh units per annum. Suzuki Motor Gujarat produces a further 7.5 lakh units. 

Additionally, the carmaker is in the process of setting up a new manufacturing plant in Sonipat, Haryana, at an initial investment of Rs 11,000 crore. This facility, likely to be commissioned in 2025, will have an installed capacity of 2.5 lakh units in the first phase.