The very reputed Japan-based company, Suzuki Motor has decided to invest 970 million for in their second new plant in Gujarat, to boost their output in order to keep pace with India’s growing car market.
Suzuki’s second line could debut in early 2019 and will manufacture the same volume production as the first line, which is going to debut in 2017. With this addition, the production line will definitely increase manufacturing capacity of the car up to 2 million per year. They will also add assembly lines for engines and transmission.
This line will manufacture models such as Baleno, which will improve more than 40% car sales of Suzuki in India. It will also help in exporting the vehicles, as Gujarat has the logistical advantage of a major port.
In corresponding to last year, the sales of mid-size sedan and sales of utility vehicles like Gaspy, S-cross are hiked, so that Suzuki’s planned expansion, rides the tailwinds of India’s rapid market growth. The new-car sales push up more than 7% in fiscal year 2015 and they are expected to increase by double digits in fiscal 2016.
Maruti Suzuki India operates their two plants on the north side of the country which combine the annual capacity of 1.5 million vehicles. After this addition of new production line, Suzuki’s capacity will hit 2 million cars per year. With still room for enlargement in Gujrat plant, the company eyes onto bolstering the production.
Suzuki Motor Invests 970 Million for Establishing Second Vehicle Production Line in India
