Maruti Suzuki India Ltd (MSIL), the country’s largest passenger carmaker, on Wednesday said 10-15 per cent of the total car production from the proposed plant in Gujarat will be exported.

The new facility is being set up by MSIL’s parent company, Japan-based Suzuki Motor Corporation, at Hansalpur in Ahmedabad district.

The company will set up three production lines at the plant, for which the foundation stone was laid here on Wednesday by Gujarat Chief Minister Anandiben Patel.

“This is the second project for Suzuki Motor (in India). We plan to commission the plant by May 2017 with an initial production capacity of 1,50,000 cars, which will be ramped up to 2,50,000. This will happen at an investment of about 60 billion yen (around ₹3,000 crore). In the second and third phases, we will have three production lines with a total production capacity of 7.5 lakh cars annually,” said Osamu Suzuki, Chairman and CEO, Suzuki Motor Corporation.

The vehicles manufactured at the facility will be supplied exclusively to MSIL to support its target of achieving two million units sales a year.

On the passenger car market outlook, MSIL Chairman RC Bhargava said the car market will not weaken, but improve with every passing year. “The repeat of a 2008 or 2011 scenario is unlikely and things have changed, hence, we see good market, going forward.”

Commenting on exports, Bhargava mentioned that MSIL began exports about 20 years ago. This year, its exports will be around 1,20,000 units. “When we will optimise the production, we will export cars. If they are manufactured here (Hansalpur), then the distance to the ports is lesser. It takes longer to bring it from Haryana. We believe the exports would be about 10-15 per cent,” he said.

Chief Minister Patel welcomed Suzuki’s new plant and maintained that this will increase employment for the locals. The company will also engage with five industrial training institutes (ITIs) in the surrounding areas and will employ students passing out from these institutes.

Bhargava added the total production capacity of 7.5 lakh cars at the site will require an investment of ₹8,000-8500 crore.

Maruti currently has about 300 vendors, which are likely to eventually set up bases at Hansalpur.

The choice of model will be desided as per the market requirement and in accordance with MSIL’s requirements, he added.

comment COMMENT NOW