Maruti Suzuki plans expansion in Gujarat by 2020, to add 750,000 units

This will take Maruti Suzuki India's total production capacity to over 2.25 million units each year

The country's largest car maker Maruti Suzuki India (MSI) plans to add another 750,000 units manufacturing capacity from three production lines in Gujarat plant by 2020, taking the total capacity to over 2.25 million units a year, a top company official said today.

The company, which already has a market share of over 50 per cent in the domestic passenger vehicle segment, is also initiating process to study ways to further expand production capacity beyond 2.25 million units per annum after 2020.

The first assembly line of Suzuki-owned Hansalpur (Gujarat) plant has already started rolling out products. It has a production capacity of 250,000 units per annum.

The second production line with similar 250,000 production capacity, is expected to be complete by this year-end, MSI Managing Director and CEO Kenichi Ayukawa said.

After that we are planning a third factory. Maybe it is coming around 2020, he added.

Ayukawa said the company plans to have around 5,000-6,000 workforce at three units.

He was speaking on the sidelines of the passing out of the first batch of Japan-India Institute for Manufacturing (JIM) at Ganpat Vidyanagar, Mehsana.

MSI already has a production capacity of 1.5 million units per annum across its two plants at Gurgaon and Manesar.

"First we will try 2 million total sales, including exports. After that we will target 2 million unit sales in the domestic market only," Ayukawa said elaborating on the 2020 sales plan.

On capacity expansion beyond 2020, he added: "I believe 2.25 million capacity could be enough but after 2020 and 2021 how we are going to manage our business expansion that we have to start a study for a long term plan".

Over 250 students graduated from Japan-India Institute for Manufacturing (JIM) at Ganpat Vidyanagar, Mehsana on Wednesday.

The institute is part of Maruti Suzuki's corporate social responsibility initiatives for skill development.

JIM is a result of the collaboration between India and Japan to create a pool of 30,000 skilled manpower for manufacturing in India.

MSI has invested over Rs 60 million in setting up and running the JIM.

"Blessed by the Prime Ministers of India and Japan, JIM at Mehsana is a step to equip youngsters in Gujarat with skills that are directly connected with the growing manufacturing industry," Ayukawa said.