Maruti Suzuki mulls biggest ever expansion plan

Maruti Suzuki, the country’s largest passenger vehicle manufacturer, is set to drive biggest ever capacity expansion at its Gujarat facility to achieve its target of hitting 2.5 million units by 2022.

Suzuki Motor Corp holds a significant share of the Indian automobile market, to continue its dominance the company plans to expand its capacity for the decade. This humongous capacity expansion it will be divided into two phases.

The company will first expand its Gujarat capacity to make 7,50,000 units by 2020. In the second phase, it will build a new plant, the location for the same is not yet finalised. The plant will be the fourth plant after Manesar, Gurgaon and Gujarat.

Maruti plans to sell 5 million passenger vehicles by 2030. Further, Suzuki also wants to invest US$1.5 billion in research and developments for competing with its rivals. On completion of the expansion plan, the capacity of the company will reach 4.5 million from the current 1.75 units.

 Meanwhile, the stock closed by 2.52 per cent at Rs. 8,512 per share, on Friday