Maruti Suzuki set to drive in biggest ever capacity expansion in India

Maruti Suzuki sets mega expansion plans; aims to produce 4.5 million cars a year by 2030

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Japanese carmaker Suzuki Motor Corp. plans the biggest ever capacity expansion by as many as 2.5 million cars a year in the decade to 2030 as it intends to maintain its dominance in India. Expansion to be undertaken in following phases:

  • Suzuki will first expand its Gujarat plant by adding capacity to make 750,000 cars starting 2020.
  • In the second phase, it will build a new plant, Suzuki’s fourth after those in Gurgaon, Manesar and Gujarat with a capacity of approximately 1.5 million units.

Why is this important

On completion of the two phases, Suzuki’s total vehicle manufacturing capacity in India will be about 4.5 million or more than double the 1.75 million vehicles it makes now (1.5 million in Gurgaon and Manesar and 250,000 in Gujarat). Such an expansion is expected to help Maruti maintain its dominant market share in the future as well.

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Stock under focus

Maruti Suzuki India Ltd (CMP: 8630, Mcap 261,116.49 cr, PE 21.6x FY20E)

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