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Maruti Suzuki plans to invest Rs18,000C for their new plant

  • Published at 07:20 pm July 24th, 2021
Maruti Suzuki
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The new plant is estimated to peak at an annual capacity of one million units

Maruti Suzuki, India’s biggest automobile manufacturer that holds a staggering 53% of the market share is planning to pump up to Rs 180 crores for a new factory in Haryana. 

The new plant is estimated to peak at an annual capacity of one million units. The new factory premises is likely to be spread over 700-1000 acres replacing its first factory in Gurgaon. 

The manufacturer has decided to shift its plant as it lacks space for expansion. And in order to produce cars at a scale of a million a year, the mere 300 acres isn’t enough to accommodate. Also because alot of residential areas have sprung up around the plant - which has been blamed for heavy traffic in the area. 

However, the carmaker is facing some issues with the move as the state’s new policy has mandated a 75% job reservation for the locals in business and factories. 

Top officials of the company are already in discussions with the state government. “We are concerned about it. We are asking the state government to work out a solution, which can make everyone happy,” said RC Bhargava, the chairman of Maruti. 

Apart from the upcoming factory in Haryana and the present Gurgaon plant, Maruti Suzuki has another manufacturing unit in Haryana’s Manesar. Both the existing manufacturing plants have a combined capacity of about 15.5 lakh per year. Maruti Suzuki’s parent company Suzuki Motor Corp. has also set up a production facility in Gujarat. The operations of that factory started in April earlier this year.  

The automaker was supposed to move a year back before the new legislation, but the new factory’s plans were delayed due to the outbreak of the coronavirus. 

And now as the company is about to review its plans, it now faces issues with the new job reservation policy. There have been reports that suggest other states have approached the company for the large investment, but Maruti is keen to invest in Haryana unless the local reservation issue plays too big of a role against them.

At present, the automaker is doing well in terms of sales after it was hit hard by the pandemic last year. To put things in perspective, the country’s largest automobile brand has reported a total sales of 46,555 units in May 2021 compared to only 18,539 units in May 2020.