Suzuki to pump Rs 6,000 crore into Gujarat plant, double capacity

NEW DELHI: Maruti's parent

Suzuki

will invest Rs 6,000 crore at its

Gujarat

factory premises to double production capacity and set up a facility for engines. The fresh funding - to be made within two years - will ramp up the company's investments in the state to nearly Rs 9,000 crore, and enhance installed capacity to 5 lakh units annually.

This will also enable Maruti and Suzuki's cumulative annual production capacity in India to move beyond 20 lakh units -15.5 lakh units at Maruti's two factories in Haryana and 5 lakh units at Suzuki's plants in Gujarat.

Kenichi Ayukawa

, MD & CEO of Maruti Suzuki, said the company expects double-digit growth in 2017-18 on the back of demand for new models and expansion of the Indian economy. "Models like the

Brezza mini SUV

and the

Baleno

hatchback will lead the charge for us," Ayukawa told TOI. .

The company sold 15.68 lakh vehicles last fiscal at a growth of 10%.. The engine plant will re quire another Rs 3,000 crore investment and this will have a capacity of 5 lakh units annually. "Most of the engines produced here will be petrol fuel." Maruti and Suzuki have been boosting investments in India as the company aims at sale of 2 million cars by 2020.