Rush hour: Why automakers are pouring Rs 1.75 trn into their factories

One reason for the rush to increase capacity is that automakers do not want to miss the bus on electric vehicles

Size does matter, after all, if you are an automotive company.

On Monday, Maruti Suzuki India, the country’s largest maker of passenger vehicles, said it would spend Rs 1.25 trillion over the next seven years leading up to FY31. This is just a touch short of five times the capital expenditure in the eight years to FY23.

Of the new capex plan, Rs 45,000 crore is for doubling the production capacity to 4 million a year. The rest will be spent on developing and launching 11 new models with different fuel options, expanding the sales and marketing teams, and on