Maruti Suzuki to Add 7.5 Lakh Units Capacity in Gujarat by 2020 in India

The country's largest car maker, Maruti Suzuki India (MSI), plans to add another 7.5 lakh units manufacturing capacity from three production lines in its Gujarat plant by 2020, taking the total capacity to over 22.5 lakh units a year.

The company, which already has a market share of over 50% in the domestic passenger vehicle segment, is also initiating process to study ways to further expand production capacity beyond 22.5 lakh 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 2.5 lakh units per annum.

The second production line with similar 2.5 lakh production capacity, is expected to be complete by this year-end, MSI Managing Director and CEO Kenichi Ayukawa told reporters here.

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 15 lakh units per annum across its two plants at Gurugram and Manesar.

"First, we will try 20 lakh total sales, including exports. After that we will target 20 lakh unit sales in the domestic market only," Ayukawa said, elaborating on the 2020 sales plan.

On capacity expansion beyond 2020, he added, "I believe that 22.5 lakh capacity could be enough, but after 2020 and 2021, how are we going to manage our business expansion; that we have to start a study for a long-term plan."

Over 250 students passed out of 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 6 crore 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.