[volkman10]

The investment to build a new car plant will double Suzuki’s annual production capacity in Gujarat to 1.5 million cars, underscoring its ambitious plans for India.

The investments towards building the new factory will be made in Ahmedabad district, close to Suzuki’s existing factory in Hansalpur-Vithalpur area

The infusion of fresh funds would boost Suzuki’s combined investment in India to as much as ₹ 30,000 crore.

Suzuki will use the funds to build three assembly lines with a total annual capacity of 750,000 vehicles, an engine manufacturing unit, buy land, build a full-fledged research and development (R&D) centre in Rohtak (Haryana) and set up a lithium-ion battery unit in Gujarat in alliance with Denso Corp. and Toshiba Corp.

Suzuki is also in the process of pulling out of China, which would mean the company won’t be present in the world’s top two automobile markets.

Suzuki’s investment does not include those made by Maruti Suzuki, which spends about ₹ 5,000 crore each year on capital expenditure and on purchasing land parcels across the country.

Source:

[gauravanekar]

What about MoU with Toyota, doesnt that add capacity for Suzuki?

[volkman10]

Suzuki to start building second plant in Gujarat by 2021.

The land acquisition for the new plant at Vithalapur is likely to be completed soon. Already in possession of 400 acres land, Suzuki is the process of acquiring another 100 acres and additional 60 acres will be allotted by the state government

The Vithalapur plant will also have three assembly lines with each having 2.5 lakh units capacity. For each line, the investment is estimated to be Rs 3,000 crore

Link

[volkman10]

Suzuki’s Gujarat Plant No.2 starts production.

Suzuki Motor Gujarat (SMG), the 100 percent subsidiary of Suzuki Motor Corporation for production of vehicles in India, has completed construction of the Gujarat Plant No.2 and commenced production of the Swift hatchback earlier this month.

Plant No 1 produces the Baleno and Swift, while Plant No.2 produces the Swift. Both plants have annual production ability of 250,000 units, which makes the ability of SMG to 500,000 units. Together with Maruti Suzuki’s production ability of 1.5 million units, Suzuki’s production ability of automobiles in India will be now 2 million units.

The company’s total automobile sales in 2018 were 1.75 million units (109% year-on-year) and production 1.87 million units (108% year-on-year) in India. Along with the Plant No.2, the Powertrain Plant has also started operating. Plant No.3 is slated to start operating in 2020.

Link

[volkman10]

Suzuki’s Gujarat plant to drive out fewer cars,will restrict the capacity to 750,000 vehicles a year instead of increasing it to 1.5 million vehicles a year as planned.

The infrastructure around the place where Suzuki built its plant has not developed and getting skilled labour is also a challenge in that part of the country. Also, the overall cost of operations is much higher since Suzuki doesn’t have its entire vendor base there

Meanwhile, the issues in Gujarat may also lead Suzuki to choose a location in south India to build a new plant to prepare for a potential surge in demand in the future

Suzuki could in the interim also access the factory of Toyota Motor Corp on the outskirts of Bengaluru to make Suzuki models at a time when domestic demand may not grow substantially in the next few years.

Link

[padmrajravi]

Interesting news. I read somewhere that the Gujarat plant is owned by Suzuki and not the India listed entity Maruti Suzuki Limited. If that is true, then Toyota India and Maruti Suzuki Limited are the same for Suzuki - Both are resellers who buy cars from Suzuki and sells them at a premium.

[volkman10]

Maruti Suzuki says Suzuki Motor preparing for start of new Gujarat plant.

India's biggest carmaker Maruti Suzuki today said that Suzuki Motor Gujarat has started preparations to commence operations of Plant No.3 in April 2021, subject to market demand

Link

[Cessna182]

What started with the Nano is now a Maruti playground. Glad to hear about it nonetheless. They transformed the area completely. 10 years ago it was a cowshed. Today it is one of the most promising manufacturing parks in India. When I drive around the place I feel completely mesmerized. Glad to see this happening in India and let's hope for more expansion by all makes. Even Colgate has a big factory here.

All it takes is 10 years of determined political will to realize the potential of people and companies. Wish all states, especially those like Bihar and UP which are spearheading the illiterate population growth in India, learn from this experience.