Suzuki Motor Corp. plans to invest at least 90 billion Indian rupees in a new car plant in Gujarat, India, Mint reported Sept. 3, citing a company executive who declined to be named.
The facility will reportedly be established in the district of Ahmedabad, close to the automaker's existing factory in the Hansalpur-Vithalpur area. Two Gujarat government officials who also requested anonymity also told the news outlet that Suzuki has already purchased the land where it plans to expand.
According to the report, vehicles from the new site will be rolled out after 2020.
Apart from the new facility, Suzuki will add another 250,000 units of capacity at its existing Gujarat factory over the next few months, and further expand it to 750,000 units by 2020, the report said.
One of the officials reportedly said that the project is expected to increase Suzuki's annual production capacity in the state to 1.5 million units. As a result, the automaker's total production capacity in India will grow to 3 million units per year, given that its local arm, Maruti Suzuki India Ltd., currently has an annual production capacity of 1.5 million vehicles, the newspaper reported.
The new manufacturing site reportedly also increases the automaker's combined investment in India to 300 billion rupees, excluding those made by Maruti Suzuki, which controls 51% of India's car market.
The Japanese parent intends to use the funds to buy land in India, establish three assembly lines with a total annual capacity of 750,000 vehicles, create an engine manufacturing unit, and build a research and development center in Haryana at the city of Rohtak. It also plans to partner with Denso Corp. and Toshiba Corp. to set up a lithium-ion battery plant in Gujarat, the report said.
The development comes after Suzuki was reported to be pulling out of China, after the company's exit in the U.S., the newspaper added.
As of Aug. 31, US$1 was equivalent to 70.88 Indian rupees.