New Delhi: Maruti Suzuki India Limited (MSIL) said on Thursday that its new 800-acre factory in Kharkhoda, Sonipat, Haryana has room to expand and will reach its maximum production capacity of 10 lakh units over the next next 8 years, requiring a total investment of INR 18,000 crore.
The company presented a check for INR 2,131 crore to the Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC). In its first phase, it invested INR 11,000 crore. This includes the land, the car manufacturing plant and some common infrastructure and facilities for future factories. It will have a production capacity of 2.5 lakh units at the new site.
According to Maruti Suzuki, the first phase of the new plant will start from 2025, followed by the second phase at the end of 2026. The plant is built to be expanded to meet domestic and export market demand.
Meanwhile, the country’s biggest automaker, which will bring its first electric car in 2025, shared that the Kharkhoda plant will not cater for the manufacture of electric vehicles (EVs).
“Only when Suzuki finds that the need for electric vehicle production has increased so much that the Gujarat plant cannot handle, then we will have to look for alternatives, whether in Manesar, Kharkhoda or elsewhere. production must first start in Gujarat, the capacity must be fully utilized and only then can we think of something else. At the moment, the Kharkhoda plant will not manufacture electric vehicles,” said RC Bhargava, president of MSIL, to ETAuto.
Its parent company, Suzuki Motor Corporation, in March this year invested INR 10,440 crore for the local manufacturing of EVs and EVs at its factory in Gujarat.
The new site is the automaker’s fourth manufacturing site after its two plants in Haryana-Manesar and Gurugram, and Suzuki’s plant in Gujarat. Maruti Suzuki also has an R&D center in Rohtak.
Another reason the company found a new site was to move production from its Gurugram factory where it says congestion has increased in the nearby residential area over the years. However, “since the Kharkohoda plant will take about 7-8 years to fully operate, there will be no immediate change in the Gurugram production facility and it will continue to operate as usual,” the company said. society.
Meanwhile, Haryana State has a Private Job Reservation Act requiring employers in the state to reserve 75% of jobs paying less than INR 30,000 per month for local applicants. In the face of industrialist opposition, the state government, which initially set the upper limit at INR 50,000, later revised it to INR 30,000. The state also had the requirement that local applicants should only be those who have resided in the state for the past 15 years, but this was also later revised to 5 years.
Suzuki Motorcycle India will also get 100 acres of land at the new Kharkhoda site. The company handed over a check for INR 266 crore for the land allocation to HSIIDC.
“Investment in the two-wheeler factory by Suzuki Motorcycle India will be separate and announced in due course,” said Kenichi Ayukawa, executive vice president of Maruti Suzuki.
The company recently said it was working on strong hybrids for the country. However, hybrid cars are subject to a total tax of 43%, including tax, in the country, against battery electric vehicles with a tax of 5%. Bhargava said they were lobbying the government but there was no result.
“Hybrids will improve fuel mileage by 30% to 35%, which means the carbon content goes down to that extent. I’m not sure of the numbers, but I don’t think with the current energy supply in India even electric vehicles will reduce it by 35% due to coal factor The government has given all kinds of incentives for electric cars but there is nothing for hybrids and CNG They are convinced that cars electric is the best answer for India. It is not,” he said.
India’s small car leader believes that the government’s draft notification on the six mandatory airbags in cars may lead to upsetting the demand scenario in the segment.
“I don’t even know if six airbags will fit small cars because they’re not meant for small cars. We will have to find out. This will certainly lead to a further decline in small car sales. Putting four additional airbags would be a substantial cost,” Bhargava said.
According to him, if inflation continues to rise, it will impact consumer demand for cars, as their attention will shift to buying the most needed items first.
Expecting most semiconductor supply issues to be resolved by next year, Maruti Suzuki said it currently has a backlog of around 3.5 lakh car reservations.
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