Suzuki to invest Rs 2,600 crore in Gujarat plant

Japanese automaker Suzuki Motor Corp plans to invest Rs 2,600 crore through its unit Suzuki Motor Gujarat (SMG), to build its second assembly plant in India and an engine and transmission unit. The units, in Mehsana in Gujarat, will become operational in 2019 and serve Indian and export markets. Suzuki Motor Corp has entered into a contract manufacturing agreement with its local unit Maruti Suzuki India Ltd, under which it will produce and sell vehicles to the latter. Suzuki Motor Gujarat aims to start production with initial capacity of 250,000 units a year in February 2017 and reach a maximum capacity of 1.5 million by 2030. With this, Suzuki’s total investments in Suzuki Motor Gujarat will increase to Rs 5,800 crore. This capital increase is to fund capital expenditure for facilities of SMG’s second assembly plant and engine/transmission plant which Suzuki plans to start in 2019 to prepare for the future growth of Indian automobile market and for the expansion of exports from India.