Annual capacity will be 2.5 lakh units.
Maruti Suzuki said that it is going to set up a new manufacturing unit in Sonipat, Haryana with an initial investment of 11000 crores. The first phase of the new plant is expected to be completed by 2025. Its production capacity will be 2.5 lakh units per year.
Country’s largest car manufacturer Maruti Suzuki India ,Maruti Suzuki) said on Friday that it is planning to set up its new manufacturing plant in Haryana (New manufacturing plant) will invest Rs 11,000 crore in the first phase. MSI informed the stock exchanges about the new manufacturing plant. Accordingly, the company has completed the process of allotment of 800 acres of land at IMT Kharkhoda in Sonipat district. For this the company has tied up with Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC). The company said that the first phase of the new plant is expected to be completed by 2025. Its production capacity will be 2.5 lakh units per year. Administrative approvals related to the construction of the new plant are yet to be taken.
MSI said it would invest over Rs 11,000 crore on the first phase of the plant. The company said that the Sonepat manufacturing plant will also have room for capacity expansion in the future. At present, Maruti Suzuki has two plants operating in Haryana and Gujarat with a total capacity of about 5.5 lakh units per annum.
The company will invest more in the future
MSI President RC Bhargava said in the conversation that the investment of Rs 11,000 crore includes the cost of land, setting up of initial production lines and setting up all other ancillary infrastructure. Without sharing any financial details, Bhargava said, “We will make more investments as we go forward.” He said that this plant will help the company to meet the growing demand in the times to come.
There is no cloud of crisis on Gurugram unit at present
Asked whether the new plant will replace the company’s Gurugram facility, Bhargava said, “This new plant is under preparation, and it will meet the demand generated from now till 2025.” I don’t know how the demand will be ahead of him. We can shut down the Gurugram plant only if the demand doesn’t increase and we don’t need the additional capacity.
The plant may also be used for electric vehicles in future.
It is not possible to share long-term plans due to uncertainties related to market growth in the future, he added. The company had earlier indicated that the new plant would replace the Gurugram plant, which has been facing serious congestion issues. Asked whether the new plant can be used to manufacture electric vehicles, Bhargava said it could happen.