The Gujarat plant will be taken over by Maruti Suzuki India Limited (MSIL) from Suzuki Motor Corporation, ending the two parties’ contract manufacturing arrangement. By 2025, this plant will begin producing Maruti Suzuki’s first-ever electric vehicle (codename: YV8), which the company is co-developing with Toyota.
According to the statement, the board of directors of both firms has approved the purchase of the plant, and the transfer will proceed pending the completion of all legal and regulatory requirements, including prior permission from minority shareholders.
Efficiency and output of the plant
- The Gujarat plant will serve as Maruti’s first EV production facility.
- Currently, this plant turns out 7.5 lakh cars a year.
- 60 percent of Suzuki’s current global production is currently produced in India.
Maruti Suzuki’s takeover to improve the effectiveness of manufacturing
The production version of the eVX idea, the Maruti Suzuki firstborn EV, will be produced at this site, as we’ve previously reported. This all-electric SUV will be produced in India and exported to other countries where it will be marketed as both a Suzuki and a Toyota product. Toyota will also offer its own version of this EV in India, although that will happen after Maruti’s version hits the market.
A number of Maruti Suzuki models that are sold in India and on other continents are produced in large quantities at the Suzuki Motor Gujarat (SMG) plant, which was established in 2014. Currently, the facility turns out 7.5 lakh units yearly.
According to the statement, the transfer is intended to boost the supply chain and manufacturing efficiency. By 2030–2031, MSIL would need to roughly double its existing manufacturing capacity in order to meet the potential expansion of the Indian auto market and export demand. According to MSIL, this would occur in many places, some of which are known and some of which are under investigation.
A number of powertrain technologies, including EVs, hybrids, CNGs, ethanol, and others, will coexist for a considerable amount of time due to the criteria for carbon neutrality, and according to MSIL, managing this scale and complexity of production will present a number of difficulties.
60 percent of Suzuki’s current worldwide production capacity is located in India. India is expected to make up between 68 and 70 percent of Maruti Suzuki’s global sales once the new facility in Kharkhoda, Haryana, is operational. The manufacturing of a brand-new seven-seat SUV built on the Grand Vitara will also take place at the Kharkhoda factory.
