Maruti will acquire Suzuki’s plant in Gujarat, production capacity will increase
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New Delhi : India’s automobile manufacturer Maruti-Suzuki has decided to acquire the Gujarat plant of its rival brand Suzuki. Maruti Suzuki has announced that it is terminating the agreement with Suzuki Motor Corporation for its plant in Gujarat. Maruti Suzuki will acquire the shares of Suzuki Motor Gujarat Private Limited (SMG) from Suzuki Motor Corporation (SMC) subject to legal and regulatory compliance. The Suzuki Motor Gujarat plant was supposed to be wholly owned by Suzuki Motor Corporation, but with the new move, it will be wholly owned by Maruti Suzuki.
plan to increase production capacity
Vehicle manufacturer Maruti Suzuki has also said that it plans to increase the production capacity to about 4 million cars per year by 2030-31, which is almost double from the current level. For this, the auto company is aiming to set up new plants. The car brand has said that it is currently studying the feasibility of setting up production facilities at multiple locations.
Maruti’s profits rise
Meanwhile, the automaker has released its first quarter results, which showed that the profit of the auto company has more than doubled on the basis of utility vehicles. Maruti Suzuki has been betting big on the SUV and MPV line-up over the past few quarters and its strategy has paid off. Keeping an eye on the growing demand for SUVs and MPVs across India as across the world, Maruti Suzuki has increasingly started focusing on utility vehicles through its Arena and Nexa retail outlets. The automaker has also expressed its ambition to capture a larger share of the Indian utility vehicle market through its range of SUVs and MPVs.
24.85 billion profit to Maruti
The carmaker’s sales volumes were greatly benefited by higher sales of costlier and margin-boosting utility vehicles. Maruti Suzuki earned a net profit of 24.85 billion for the quarter ended June 30. Interestingly, Maruti Suzuki’s last quarter results were similar to those of its rival Tata Motors, whose profits also exceeded estimates.
Suzuki plant in Hansalpur Bechraji village of Ahmedabad
Explain that the vehicle manufacturer Suzuki Motor Gujarat (SMG) Private Limited is an automotive manufacturing plant owned by Suzuki Motor Corporation. This plant of Suzuki Motor is built in Hansalpur Bechraji village of Mandal taluka of Ahmedabad district of Gujarat. It is the first and only Suzuki automobile manufacturing plant in India to be wholly owned by Suzuki as a foreign company. The rest of the plants are owned by Maruti Suzuki. The plant supplies vehicles to Maruti Suzuki in the domestic market and overseas markets.
Suzuki has four plants in Gujarat
Suzuki Motor’s Gujarat plant was opened on 1 February 2017 and has a total annual capacity of 750,000 units. This plant has helped Suzuki achieve exports of 2 million units from India. Suzuki Motor currently has four plants in Gujarat, with Plant-A opened in February 2017, which has a total annual capacity of 250,000 and is currently assembling the Baleno. In addition, Suzuki’s Plant B was commissioned in January 2019 and has a total vehicle production capacity of 250,000. Currently it is assembling Swift. Plant C started production in April 2021 with an annual capacity of 250,000 and is currently assembling the Dzire. The powertrain plant has an annual capacity to manufacture 500,000 engines and 500,000 powertrains.
Gada Millstone on August 2022
The biggest thing is that only 3 years and 9 months after production started in February 2017, this plant of Suzuki crossed the 1 million production mark on 21 October 2020. It is the fastest production site of Suzuki to reach the milestone. It crossed the production figure of 20 lakh units on 20 August 2022. It has achieved this feat in 5 years and 6 months after starting production in February 2017 and is the fastest by any Suzuki production plant. The two millionth vehicle produced was the Baleno with South African specifications.
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