Maruti To Invest INR 18,000 Cr In Sonipat Plant To Roll Out 1 Million Units Per Annum MSIL currently has a cumulative production capacity of around 2.2 million units per annum

By Teena Jose

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Maruti Suzuki Twitter handle

Maruti Suzuki India Ltd (MSIL) on Thursday announced to invest INR 18,000 crore in the Sonipat plant, the company's new manufacturing facility, to reach a peak production capacity of 1 million per annum in the next eight years. The new facility, which would come at 800-acre site at IMT Kharkhoda in Sonipat district, will entail a total investment of INR 11,000 crore in the first phase with the production capacity of 250,000 units per annum.

"When Suzuki Motor Corporation started operations in Haryana, India was not on the global car manufacturing map. Today, India is the fourth largest car manufacturer in the world. And we hope that in the coming years, India will become the third global car manufacturer, globally," said Kenichi Ayukawa, executive vice chairman, MSIL, in a statement.

According to reports, MSIL has a cumulative production capacity of around 2.2 million units per annum. The two manufacturing plants in Haryana, at Gurugram and Manesar, together roll out around 1.55 million units per annum.

As per the company's statement, phase 1 of the project will have an investment of about INR 11,000 crore. It includes land, car manufacturing plant, common infrastructure and facilities for future plants. MSIL presented a cheque of INR 2,131 crore to Haryana State Industrial and Infrastructure Development Corporation Ltd.

Vijayendra Kumar, Haryana government principal secretary of industries and commerce, in a news report was quoted as saying, "Maruti Suzuki and Suzuki Motorcycle have committed INR 18,000 crore and INR 1,466 crore (respectively) investment for Sonipat site. This facility would provide direct and indirect employment opportunities to over 13,000 people."

According to the India Brand Equity Foundation's infographic, on growth of automobile industry, India could be a leader in shared mobility by 2030, providing opportunities for electric and autonomous vehicles. The government of India expects automobile sector to attract $8-10 billion in local and foreign investments by 2023.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

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