Boost For Gujarat Manufacturing: Suzuki To Invest Rs 9,000 Crore In State Towards Doubling Capacity

In what will be a huge boost to the manufacturing activity in the state, Suzuki Motors is expected to invest Rs 9,000 crore at it manufacturing units in Gujarat, Mint has reported. This will double the company’s annual manufacturing capacity, and bring the company’s total investments in India up to Rs 30,000 crore. The new investment cited in the report does not include investments of Maruti Suzuki.

“The company has recently purchased some private land where it plans further expansion. The overall capacity of Suzuki in Gujarat will reach 1.5 million vehicles once these two projects are complete,” a state government official told Mint.

“The company is giving direct employment to at least 4,000 people in the state. It will create overall direct and indirect employment for about 25,000-30,000 people in future,” said another official.

Suzuki’s plans for India also include an engine manufacturing unit, a research & development unit in Rohtak and a lithium-ion battery unit in Gujarat. The lithium-ion battery unit is expected to be set up in association with Denso Corp and Toshiba Corp.

On 23 August, Nikkei Business had reported that Suzuki is keen to pull out of China, disbanding its joint venture with the Chinese partner Chongqing Changan Automobile Co. Thus, the investments in India are expected to make up for capacities that were in China so far. Suzuki has earlier pulled out of the United States market in what is seen as its attempt to focus on the Indian market.