KATHMANDU: Maruti Suzuki has announced plans to increase its annual production capacity in India by up to 1 million units. The expansion follows the company’s purchase of land worth around $550 million to support future manufacturing growth.
The expansion comes amid strong demand for entry-level cars in the domestic market. The company currently has an order backlog of about one-and-a-half months for its affordable models, media reports citing company sources say.
Maruti Suzuki reported strong sales growth in December. Sales to domestic dealers rose 37 percent year-on-year to a record 178,646 units.
The expansion aligns with Suzuki Motor’s long-term investment plan in India. In August, the Japanese automaker announced an $8 billion investment over the next five to six years.
Suzuki Motor has already started commercial production of the mid-size Vitara SUV at its Gujarat plant. Through its majority stake in Maruti Suzuki, the company currently manufactures 17 models in India.
These vehicles are exported to around 100 countries, including Japan. Suzuki has also confirmed that India will serve as its global production hub for electric vehicles.
The planned capacity increase is expected to strengthen Maruti Suzuki’s position in the Indian market while supporting its export and electric vehicle strategy.
