Maruti Suzuki India is encountering a minor delay in finalizing the location for its new plant, which is set to have an annual capacity of 1 million units. Despite this setback, the company’s upcoming facility in Kharkhoda, Haryana, is on schedule to begin production by 2025-26, according to Chairman RC Bhargava.
Speaking at the company’s annual general meeting, Bhargava confirmed that Maruti Suzuki remains committed to its expansion plans. The delay in site selection for the new plant has not impacted the timeline for the Kharkhoda plant, which is expected to contribute to the company’s sales in the fiscal year 2025-26.
Earlier this year, Suzuki Motor Corporation President Toshihiro Suzuki announced a Rs 35,000 crore investment for a new manufacturing facility in Gujarat with a planned capacity of 1 million units per annum. Additionally, Maruti Suzuki is investing Rs 18,000 crore in the Kharkhoda plant, which will be the company’s third plant in Haryana.
On the topic of entry-level cars, Bhargava emphasized Maruti Suzuki’s commitment to producing affordable and small cars, which he believes are essential for India’s economic and social landscape. Despite a temporary dip in demand, the company expects a resurgence in the market for small cars within the next two years.
Bhargava also outlined the company’s plans to enhance its sales and service network in rural and smaller towns to extend the benefits of Maruti’s services beyond major cities. Regarding the company’s electric vehicle (EV) strategy, Bhargava projected that Maruti Suzuki would introduce six EV models by fiscal year 2030-31, with the first model set for production and export to Europe and Japan within a few months.
In addressing shareholder concerns, Bhargava clarified that hybrid vehicles are complementary to electric vehicles, aiming to reduce pollution and oil consumption. He reiterated Maruti Suzuki’s commitment to environmental sustainability and carbon neutrality, emphasizing the company’s ongoing efforts to develop new technologies in collaboration with Suzuki in Japan.
Regarding shareholder requests for bonus shares and stock splits, Bhargava stated that while the company is open to exploring these options, they have not yet identified a clear benefit that would enhance competitiveness or profitability. Looking ahead, Maruti Suzuki aims to boost its production capacity to approximately 4 million units, introduce six new EV models, and increase exports to 7.5-8 lakh units annually by FY30-31.
