Maruti Suzuki (Maruti Suzuki) has announced that it has finalized an 800-acre site at IMT Kharkoda in the Sonipat district of Haryana. Maruti will soon set up its new plant at this place, which will have a production capacity of at least 2.5 lakh units per annum in the first phase. Maruti Suzuki has been in talks with the Haryana government to invest in a new manufacturing plant so that it can increase its overall production.
In the first phase, Maruti Suzuki plans to invest Rs 11,000 crore and the first plant here is expected to be commissioned by 2025, subject to administrative approval. The company further states that there is enough space here that more manufacturing facilities can be set up later.
The OEM makes a number of models in the small vehicle segment like WagonR, Swift, Alto, Eeco and Celerio, which have a lot of sales. At the same time, it also has a major stake in the utility vehicle space with Vitara Brezza, Ertiga and XL6.
Maruti Suzuki currently has a production capacity of 20 – 20 lakh units per year from both its plant in Gurugram, Manesar and Suzuki Motor’s plant at Hansalpur Becharaji village in Ahmedabad district of Gujarat.
The company is also planning to enter the mid-size SUV space soon. In such a situation, Maruti Suzuki is also looking to play a big role in the large segment of passenger vehicles. Maruti Suzuki India Chairman R.C. Bhargava recently told the media, “Small cars are no longer profitable as before. We have to change our strategy. People with limited income are getting out of the car market due to high cost.” The hatchback car market is “shrinking significantly,” he said.
Maruti Suzuki has launched the updated Baleno, Ertiga and XL6 so far in 2022. The production process and delivery timeline remains a concern due to global shortages in semiconductor chips. Almost every other OEM is dealing with the same problem. Rising input cost by Maruti Suzuki has also been attributed to the recent hike in car prices. Overall, auto experts predict the demand for passenger vehicles to remain strong in the near future despite on-ground challenges.