Companies

Maruti, Suzuki Motorcycle hand over ₹2,400 crore to Haryana govt as land cost for new plants

BL New Delhi Bureau | Updated on: May 19, 2022

The 800-acre site at IMT Kharkhoda in Sonipat will entail a total investment of ₹11,000 crore in the first phase

Maruti Suzuki India (MSIL) and Suzuki Motorcycle India (SMIPL) on Thursday handed over ₹2,400 crore to the Haryana government as the cost of land for new factories coming up in Kharkhoda, Sonipat.

Both companies are investing a total of around ₹20,000 crore over the next eight years to set up their plants. While, MSIL presented a cheque of ₹2,131 crore to Haryana State Industrial and Infrastructure Development Corporation (HSIIDC), SMIPL, which will get a 100-acre plot at the new facility, handed over a cheque of ₹266 crore for land allotment. Of the total investment, MSIL is investing ₹18,000 crore, while SMIPL is investing the rest. MSIL’s new facility, which is to come up at an 800-acre site at IMT Kharkhoda in Sonipat district, will entail a total investment of ₹11,000 crore in the first phase, with a production capacity of 2.5 lakh units per annum. The first set of vehicles are expected to roll out of the facility in 2025.

“We were born in Haryana (with the first plant in Gurugram in early 1980s), grew in Haryana and will continue to grow in Haryana. The Kharkhoda facility alone will manufacture a million cars a year. This will probably be the biggest manufacturing site in India,” RC Bhargava, Chairman, MSIL, said.

Subject to market conditions, he said the company would reach peak production capacity in eight years.

Currently, MSI has a cumulative production capacity of around 22 lakh units per annum across its two manufacturing plants in Haryana and parent Suzuki Motor’s facility at Gujarat. The two plants in Haryana—at Gurugram and Manesar—together roll out around 15.5 lakh units per annum.

Its parent Suzuki Motor Corp has also set up a facility in Gujarat with an installed production capacity of 7.5 lakh units per year after the third unit started production in April last year.

The growth of Maruti Suzuki and the prosperity of people of Haryana are interlinked, Kenichi Ayukawa, Executive Vice Chairman, MSIL, said.

“When Suzuki Motor Corporation (Japan) 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 largest car manufacturer, globally,” he added.

Published on May 19, 2022
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