Maruti Suzuki Draws Up Investment Plans For New Plant In Sonipat
The new plant will reach peak production capacity of 10 lakh units per annum in the next eight years, entailing a total investment of Rs 18,000 crore.
Maruti Suzuki India Ltd.'s new plant in Haryana, its third in the state, will reach peak production capacity of 10 lakh units per annum in the next eight years, entailing a total investment of Rs 18,000 crore.
The new facility, to be built over 800 acres in Sonipat, will entail a total investment of Rs 11,000 crore in the first phase for a production capacity of 2.5 lakh units per annum. The first car will roll out of the facility in 2025.
Speaking at an event here to mark the , MSI Chairman RC Bhargava said the 10 lakh production capacity at the Sonipat plant would help in catering to the demand in both domestic as well as export markets.
"Subject to market conditions we will be able to reach peak production capacity in eight years," Maruti Suzuki Chairman RC Bhargava said at an event to mark the formal announcement of land allotment for the factory. "The Sonipat plant will then become the largest site with production capacity of 10 lakh cars."
Maruti suzuki, at present, has a cumulative production capacity of 22 lakh units per annum across its two car plants in Haryana and parent Suzuki Motor Co.'s facility at Gujarat. The two plants in Haryana -- at Gurugram and Manesar -- together roll out around 15.5 lakh units per annum. Suzuki Gujarat has an installed production capacity of 7.5 lakh units per year.
According to Executive Vice Chairman Kenichi Ayukawa, the growth of Maruti Suzuki and the prosperity of people of Haryana are interlinked.
"When Suzuki Motor Corporation started operations in Haryana, India was not on the global car manufacturing map. Today, India is the fourth largest car manufacturer in the world," Ayukawa said at the event. "And we hope that in the coming years, India will become the third largest car manufacturer, globally."
"Today, we sign agreements with the Haryana government for allotment of 800-acre land to Maruti Suzuki and 100-acre land to Suzuki Motorcycle India Pvt. Ltd. Maruti Suzuki will start construction work on the car manufacturing plant immediately," Ayukawa said.
With the support of the state government, the first plant, with an annual capacity of 2.5 lakh vehicles, is expected to be commissioned within the year 2025, he said. Phase one of the project will have an investment of Rs 11,000 crore. This includes the land, the car manufacturing plant and some common infrastructure and facilities for future plants, he said.
At the event, Maruti Suzuki presented a cheque of Rs 2,131 crore to the Haryana State Industrial and Infrastructure Development Corporation Ltd. Suzuki Motorcycle India handed over a cheque of Rs 266 crore for the land allotment.
Haryana government Principal Secretary (Industries and Commerce) Vijayendra Kumar said that Maruti Suzuki and Suzuki Motorcycle have committed Rs 18,000 crore and Rs 1,466 crore investment for Sonipat. The facility would provide direct and indirect employment opportunities to over 13,000 people, he said.