Maruti Suzuki begins production at its new Kharkhoda plant, boosting capacity
Maruti Suzuki has commenced commercial production at its newly established Kharkhoda plant in Haryana, marking a significant expansion of its manufacturing footprint in India. The Maruti Brezza is the first model to roll off the production line at this facility, which now stands as the company’s third plant in Haryana, alongside the existing units in Gurugram and Manesar.
Enhanced Production Capacity
The Kharkhoda facility, spread across an expansive 800-acre site, currently has an initial annual production capacity of 2.5 lakh units. However, the plant is designed for scalability, with a planned capacity of one million units annually once fully operational. This development elevates Maruti Suzuki’s overall production capacity in India to approximately 2.6 million units per year.
Maruti’s Gurugram plant, one of its oldest facilities, can produce up to 7 lakh vehicles annually, while the Manesar plant has an installed capacity of 9 lakh units per year. In addition, Suzuki’s wholly-owned plant in Gujarat contributes another 7.5 lakh units annually to the overall production output.
Strategic Expansion to Regain Market Leadership
The expansion aligns with Maruti Suzuki’s broader strategy to regain its 50 percent market share in India, a target the company had previously held but has seen eroded due to rising competition and changing market dynamics. The automaker plans to double its production capacity to 4 million units annually by 2030-31, supported by an investment of approximately Rs. 45,000 crores.
This growth plan includes not only increased production but also the introduction of new models across popular segments, such as SUVs and MPVs, along with electric vehicles (EVs). Additionally, Maruti is considering new entry-level models powered by both internal combustion engines (ICE) and electric drivetrains to cater to evolving consumer preferences.
Suzuki’s Renewed India Focus
Suzuki Motor Corporation, Maruti’s parent company, has acknowledged the need to reassess its strategy for the Indian market, citing intensified competition and a slowdown in entry-level car sales. To address these challenges, Suzuki has outlined plans to invest nearly Rs. 70,000 crores in India over the next five years.
While the company remains committed to expanding its presence and product offerings, it has also revised its long-term sales outlook for the Indian market, trimming projections by around 15 percent.
Despite these adjustments, the commencement of production at the Kharkhoda plant reflects Maruti Suzuki’s confidence in the Indian market’s potential and its commitment to maintaining a leadership position through increased production capacity, technological advancements, and a diversified product portfolio.