May 18: Japanese car manufacturer Suzuki Motor Corp is seen dominating the Indian car market and sells one out of two cars that changes hands here. The company, in order to maintain this dominance in the Indian market, is planning to multiply the production capacity by 2.5 million cars per year till 2030.
According to reports, the expansion will be the largest one ever for Suzuki in India and will be conducted in two phases. In the first phase, the Maruti Suzuki plant in Gujarat will be developed and will be equipped to produce around 750,000 cars in 2020.
A new plant, which is going to be the fourth one in India, will come up in the second phase of the expansion. Suzuki currently has three plants in India – at Gurgaon, Manesar and Gujarat. The details about the location of the new plant are not yet out but there is news that the upcoming plant will probably have a production capacity of 1.5 million units.
By the end of the two phases, the carmaker’s production capacity will be about 4.5 million. The expansion plan of the company was disclosed to some of its suppliers at the meeting held in Abu Dhabi, said reports.
Osamu Suzuki, Chairman of Suzuki Motor Corp, in a conference held earlier this month said that the company aims to sell as many as 5 million passenger vehicles by 2030.
It has been reported that the company’s plan to expand the plant in Gujarat is to ease their target of three million units by 2025. And in order to maintain their dominance in the market the company is planning to open a new plant.
The new version of Ciaz, a mid-size sedan is likely to be launched in 2020 and the production of the same will be shifted to Gujarat plant.
Apart from this, in order to stay ahead of the Korean and European rivals in India, the company is planning to invest an amount of $ 1.5 billion to the R&D segment. There were also reports that the company is working on producing hybrid vehicles and gasoline engines.