Maruti Suzuki India, Suzuki Motocycles Invest INR 13,000 Crore For New Plants At IMT Kharkhoda

Mobility Outlook Bureau
19 May 2022
04:30 PM
1 Min Read

In the first phase, MSIL will invest INR 1,100 crore to create a manufacturing capacity of 2.5 lakh vehicles annually by 2025, while Suzuki will invest INR 2000 crore.

Maruti Suzuki

In what is termed the biggest transaction for Haryana, Maruti Suzuki India Limited (MSIL) and Suzuki Motorcycles on Thursday signed a deal worth INR 13,000 crore for the first phase with the Haryana government to acquire land spread across 900 acres for their new plants at IMT Kharkhoda.

Earlier MSIL announced that in the first phase, with an investment of INR 1,100 crore, the company plans to start with a manufacturing capacity of 2.5 lakh vehicles annually by 2025, while Suzuki has invested INR 2,000 crore for the first phase.

MSIL also noted that the site will have space for capacity expansion to include more manufacturing plants in the future. Under the deal, the 800-acre of the land has been allocated to MSIL, while the rest 100 acres has been allocated to the two-wheeler maker.

With this, both parties are expected to create employment for 13,000 people, including 11,000 for MSIL. Interestingly, the state government has asked both parties to reserve 75% for local employment. 

Manoharlal Khattar, Chief Minister, Haryana, said that history has been repeated after 40 years as MSIL sets up its third plant in Haryana.

Dushyant Chautala, Deputy CM, Haryana, said that Haryana has been associated with MSIL for over four decades now.

He continued that the company has been the base for the state’s development. “MSIL has converted Gurugram and Manesar from a small villages to global cities. I believe the same will happen to Kharkhoda,” he added.

Further, as the state sees more industries coming in, the deputy CM noted that the aim is to become the first state in India to have a heliport connecting Narnol, Karnal, Pinjore and Bhiwani airports under the Regional connectivity scheme.

RC Bhargava, Chairman, MSIL, said that this is the biggest investment for the company, the state as well as the automotive industry in India.

He added that the new plant will have a maximum production capacity of one million units per annum which the company expects to achieve within eight years by 2030. However, he noted that there are no plans to produce EVs from the plant at the initial stage.

While Kenichi Ayukawa, Vice Chairman, MSIL, noted that with the new plant, the state will see around 120-200 ancillaries coming in as the business expands.

He added that the company was the largest automobile exporter in the country in FY22, with total exports of 2.38 lakh units exported during the fiscal.

“India is the fourth largest automobile market in the world. We expect it to become the third largest very soon,” Ayukawa concluded.

Share This Page