Suzuki plans to invest Rs 18,000 crore in its Sonipat plant for the next eight years

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• May 19, 2022 | Poonam Nath

Thanks to its new factory in Haryana, Maruti Suzuki India expects to attain a peak manufacturing capacity of 10 lakh units per year in the next eight years.

Digital Desk: Maruti Suzuki India (MSI) announced on Thursday that its new manufacturing facility in Haryana, the company's third in the state, will reach a peak production capacity of 10 lakh vehicles per year in the next eight years, at the cost of Rs 18,000 crore.

The new factory will be built on an 800-acre location in Sonipat district's IMT Kharkhoda, will cost Rs 11,000 crore in the first phase, and will have a production capacity of 2.5 lakh units per year.

The facility's first batch of automobiles is planned to leave in 2025.

MSI's two manufacturing factories in Haryana and parent Suzuki Motor's facility in Gujarat have a combined production capacity of roughly 22 lakh vehicles per year.

In Gurugram and Manesar, the two Haryana establishments produce roughly 15.5 lakh units each year.

After the third unit began production in April of last year, Suzuki Motor Corp established a facility in Gujarat with an installed manufacturing capacity of 7.5 lakh units per year.

MSI Executive Vice Chairman Kenichi Ayukawa stated that Maruti Suzuki's progress and the welfare of Haryana's people were inextricably intertwined.

"India was not on the world car manufacturing map when Suzuki Motor Corporation began operations in Haryana. India is now the world's fourth-largest automobile manufacturer. And we expect India to overtake China as the world's third-largest automaker in the future years," he said.

He said Haryana had played a key part in the company's progress over the years, helping it become the country's biggest automaker.

Ayukawa stated, "So, we are happy that Haryana is one of the top locations for car manufacturing, not just in India but also in the world. Today, we signed the agreements with the Haryana government to allot 800-acre land to Maruti Suzuki and 100-acre land to Suzuki Motorcycle India Private Limited. Maruti Suzuki will start construction work on the car manufacturing plant immediately." 

He stated that with the help of the state government, the first factory, with a capacity of 2.5 lakh automobiles per year, should be operational by 2025.

According to Ayukawa, the project's first phase will cost around Rs 11,000 crore.

He went on to say that this comprises the land, the automobile manufacturing factory, as well as some shared infrastructure and amenities for future plants.

MSI handed Haryana State Industrial and Infrastructure Development Corporation Ltd a cheque for Rs 2,131 crore (HSIIDC).

Suzuki Motorcycle India, which would be given a 100-acre site at the new plant, also handed up a cheque for Rs 266 crore for the property.

Maruti Suzuki and Suzuki Motorcycle have committed Rs 18,000 crore and Rs 1,466 crore, respectively, to the Sonipat plant, according to Haryana government Principal Secretary Industries and Commerce Vijayendra Kumar.

He stated that the facility would provide direct and indirect employment to approximately 13,000 people.

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