Maruti Suzuki to invest Rs 18,000 cr to set up its largest plant in Haryana

The country’s largest passenger car maker Maruti Suzuki India Ltd (MSIL) today secured 800 acres of industrial land from the Haryana State Industrial & Infrastructure Development Corporation (HDIISC) against Rs 2,131 crore to set up its largest manufacturing plant.

MSIL, which already has manufacturing facilities in two locations in the state - Gurgaon and Manesar- will be investing in excess of Rs 18,000 crore over the current decade in the third and upcoming plant.

According to Kenichi Ayukawa, CEO, MSIL, the new plant will be the largest with a production capacity of one million units per year. While the first set up in Gurgaon was built on 300 acres of land, second location in IMT Manesar was set up on 600 acres, while the new plant will be on 800 acres.

“The new plant will be operational by 2025 with a capacity of 250,000 units per year in the first phase. Kharkhoda plant will be largest plant for MSIL. India is the fourth largest car manufacturer in the world and will become third largest in coming years”, he said.

According to RC Bhargava, Chairman, MSIL, it will be the largest investment not only for MSIL but for the automobile sector in India. As the set up at IMT Manesar has been exhausted in terms of capacity, Bhargava says the upcoming plant will take 8 years to be utilised fully. “We will reach the one million a year full capacity at Kharkhoda in eight years”, he said.

Additionally, the Suzuki Motorcycle India Pvt. Ltd. has secured 100 acres of land parcel adjacent to the MSIL plot against Rs 266 crore from HDIISC. The plant will be rolling out Suzuki two-wheelers at an investment of Rs 1,400 crore.

According to Manohar Lal Khattar, Chief Minister of Haryana, the two plants will ensure creation of over 13,000 jobs out of which some 10,000 will be directly available to residents of Haryana. 

“We discussed with MSIL top management and convinced them about the 75 per cent jobs quota for the locals. MSIL was born in Haryana and has since grown to the size in Haryana. It is an integral part of the state. Today, history is repeating itself as they again keep faith in the state’s industrial policies and business environment”, the CM said referring to MSIL’s earlier stance of setting up plant at Gujarat.

Also read: Maruti Suzuki finalises site for new manufacturing unit in Haryana