Maruti Suzuki targets 2 million units production by March 2023

    To increase the production capacity, Maruti has invested Rs 11,000 crore in its new Haryana plant, company chairman RC Bhargava said.

    Published On Aug 09, 2022 03:40:00 PM


    Maruti Suzuki plant

    Image used for representation only

    Listen to this Article

    Maruti Suzuki says it aims to increase its production to 20 lakh units in the ongoing fiscal year, thanks to greater availability of semiconductors. In his address to the company shareholders in the Maruti's annual report for FY2022, chairman RC Bhargava said that the upcoming Grand Vitara midsize SUV will be a key driver in the company’s aim to touch 2 million units.

    The carmaker has recorded higher production in the first three months of FY2023  it produced a total of 4,54,161 units, registering a 26 percent growth compared to the first quarter of FY2022. Given the rising demand for many of its models, it is likely that Maruti Suzuki will meet the 20 lakh units target by the end of March 2023. 

    Chip availability to increase production

    Commenting on the outlook for FY2023, Bhargava was positive that vehicle production will swell because of the improving availability of semiconductors. He cited the upcoming launch of the Creta-rivalling Grand Vitara midsize SUV – to be manufactured at Toyota’s factory in Karnataka along with the Urban Cruiser Hyryder – as one of the reasons for the increase. 

    Updating Maruti’s SUV portfolio is necessary to make up the decline in sales of entry-level hatchbacks, which has been the core segment for the company. Sales of Maruti Suzuki’s budget hatchbacks declined by 5 percent in FY2022 compared to FY2021, due to rising costs. 

    Earlier, the carmaker did not have enough models in the rapidly growing SUV segment. However, Bhargava said the situation has greatly improved with the launch of the new Brezza and the upcoming Grand Vitara. He also added that more SUVs from the brand are to follow. 

    Maruti Suzuki invests Rs 11,000 crore in its new plant 

    To meet future demands, Bhargava said Maruti Suzuki has finalised land purchase at Kharkhoda, Haryana for its new manufacturing plant, where it is investing Rs 11,000 crore for the first phase. "The first unit is planned to be commissioned in 2025 and the second about a year later," he added. Depending on market conditions, Bhargava said that the plant has the potential to become “one of the largest car manufacturing sites anywhere in the world.” 

    Commenting on the Maruti's electrification plans, the chairman said it will start producing EVs at Suzuki’s Gujarat plant from FY2025, reiterating that it will take time for EVs to penetrate in all segments of the car market. Until then, the carmaker will be looking at the use of CNG, ethanol, biogas and strong hybrids to reduce its carbon footprint. 

    Also see: 


    Maruti Suzuki Cars

    Copyright (c) Autocar India. All rights reserved.



    No comments yet. Be the first to comment.

    Ask Autocar Anything about Car and Bike Buying and Maintenance Advices
    Need an expert opinion on your car and bike related queries?
    Ask Now

    Search By Car Price

    Poll of the month

    Would you buy an electric Royal Enfield?

    Yes, electric mobility is here to stay and we must adapt



    No, it's not a proper Royal Enfield without the sound and feel



    Total Votes : 1276
    Sign up for our newsletter

    Get all the latest updates from the automobile universe