AMN / WEB DESK
Maruti Suzuki Limited (MSIL) chairman RC Bhargava has said the automaker is planning to double its production capacity to 4 million units in nine years from now.
In his address to the company’s shareholders in the Annual Report for 2022–2023, he said that the company is currently revamping its manufacturing facilities to “conform to the realities and what we are projecting for the future” in light of the growing popularity of SUV sales in India.
Bhargava added that although the Indian automobile sector is not anticipated “to grow in double digits, like what happened in China in the past, we do expect that a 6 percent growth rate will be maintained till FY 2030-31”.
Emphasising on the steps taken to fulfil anticipated demand, he said, “Our first phase was when we were a public enterprise. The second phase ended with the COVID-19 pandemic, and the Indian car market became the third largest in the world… It took us 40 years to create a capacity of 2 million units and Suzuki Motor Corporation helped in this process by establishing the Gujarat facility. Your Company now has to add the next 2 million in a period of 9 years.”
“Your company now has to add the next 2 million in a period of 9 years. The task of managing all the issues relating to the production of 4 million units a year requires considerable thought and possible reorganisation of the structure of the company keeping in view the best interests of all shareholders as well as other stakeholders of the company. We will, as soon as possible, announce what we are proposing,” he told shareholders in his written message.
On Saturday, India’s largest automaker
released its annual integrated report for the financial year 2022-23. titled ‘Maruti Suzuki 3.0’.
Bhargava said it took 40 years for MSIL to create a capacity of 2 million units. The required investments will all come from internal resources.
According to the MSIL report, the overall auto industry is expected to grow at a 6% rate till 2030-31. In 2023-24, Maruti Suzuki India expects to grow at a slightly higher rate.
“Along with the rising domestic demand, the prospects for exports are also expected to continue to improve,” Bhargava said in the report.
By the fiscal year 2030–31, Maruti Suzuki projects export volumes of between 7.5 lakh and 8 lakh cars. The Chairman emphasised that the company has to increase its manufacturing capacity by an extra 20 lakh units due to the mix of home and foreign demand.