Maruti Suzuki to open new factory in Haryana

Maruti Suzuki is expanding its production capacity, and by a vast amount. The carmaker has signed a memorandum of understanding with the State of Haryana to open a new manufacturing plant in Sonipat on 800 acres of newly acquired land. The plant is proposed to produce 2,50,000 vehicles in its first phase, to open by the year 2025. There are also plans and possibilities of expanding the site later. Maruti Suzuki has allocated ₹11,000 crore to build the new factory in its first phase.

Maruti already has manufacturing plants in Haryana at Manesar and Gurugram, with a combined production capacity of 15,80,000 vehicles. This new investment comes as Maruti Suzuki attempts to break the rapid rise of Indian manufacturers Tata and Mahindra. The former has ridden a crest of support from its electric vehicle department led by the success of the Tata Nexon EV, while the latter has succeeded with the Mahindra Thar and Mahindra XUV700 becoming sales successes. Maruti Suzuki hopes to crack the electric vehicle market with its innovative and efficiency-led production techniques.

This news comes on the back of Maruti Suzuki’s new emphasis on building electric vehicles. As we had reported earlier, parent company Suzuki has also invested more than ₹10,000 crore in a memorandum of understanding with the State of Gujarat to expand its capacity for building electric vehicles, as well as new plants to build batteries for electric vehicles that will be exported globally from India as well. That investment also includes the creation of new scrappage centres to help the recycling of old cars in India.

This is good news for the Indian car market, as it means more and more carmakers are getting serious about the electric vehicle business. When the largest fish in the sea makes a commitment of this size, one can only hope that other carmakers follow suit. The rise of electric vehicles has been inevitable. Although Maruti Suzuki has not been as quick as Tata to seize the momentum, it will undoubtedly be a tough competitor for the Indian manufacturer.