Suzuki Plans Second Car Plant Worth INR 35,000 Crore In Gujarat; Aims To Double Production
Opportunity India Desk
Jan 10, 2024 -
2 min read
Japanese carmaker Suzuki Motor on Wednesday announced its plan to invest INR 35,000 crore to build a second car plant in Gujarat, aiming to raise production capacity in one of its key markets. Suzuki will also invest INR 3,200 crore to add a new production line in an existing plant in the state, which will boost its electric vehicle production.
Toshihiro Suzuki, Pesident of Suzuki Motors, while speaking at the 10th edition of Vibrant Gujarat Summit 2024, said, “The first Battery Electric Vehicle (BEV) of Suzuki group will be rolled out from Suzuki Motors Gujarat by the end of this year. We plan to sell this model not only in India but also export to Japan and European countries.”
New Production Line
“To expand our BEV production, Suzuki will invest INR 3,200 crore in Suzuki Motor Gujarat to add a new production line which can produce 2.5 lakh units per year. This will increase the annual production capacity of Suzuki Motor Gujarat from 7.5 lakh to 1 million units,” he added.
According to the company, with the addition of the second car plant, Suzuki’s total annual production in Gujarat will be 2 million units per year.
Toshihiro further said, “In the past 10 years, under the leadership and constant support of Prime Minister Narendra Modi to manufacturing industries, India's automotive market has experienced a consistent growth. Consequently, India has now secured its position as the third-largest automobile market globally.”
Suzuki’s Biogas Production Plants
In addition to vehicle manufacturing, Suzuki has signed a Memorandum of Understanding (MoU) with the National Dairy Development Board (NDDB) and Banas Dairy as part of its efforts to reduce greenhouse gas emissions. “Taking advantage of India’s animal wealth, we will start the production of biogas from cow dung,” Toshihiro said. Suzuki has already started construction of four biogas plants in Gujarat.
The project is aimed at making fuel for automobiles by refining methane from biogas, which is generated by fermenting cow dung. Four biogas production plants will be operated starting from 2025 in Banaskantha district in Gujarat. The total investment of four plants is planned to be INR 2.3 billion. Also, biogas filling stand will be established alongside each plant, which will distribute fuel for CNG vehicles in which Maruti Suzuki holds over 70 per cent market share in India.
The 10th edition of the Vibrant Gujarat Global Summit, which is being held from January 10 to 12, was inaugurated by Prime Minister Narendra Modi on Wednesday.
