Maruti Suzuki's Rs 1.25 Lakh Crore investment plan till FY2031

Maruti Suzuki India has unveiled an ambitious investment plan of approximately Rs 1.25 lakh crore until FY2031. This substantial capital expenditure is in addition to the regular expenses incurred for the existing plants in Gurgaon, Manesar, and Gujarat. The company foresees a temporal gap between investments and revenue as additional cash flows will be directed towards establishing new capacities.

Maruti Suzuki aims to achieve a production capacity of 4 million units by FY2031. To achieve this target, an estimated expenditure of roughly Rs 45,000 crore is anticipated, factoring in current costs and allowing for minor cost escalation. Out of the projected 4 million units, over 3 million are slated for the domestic market, including sales to other Original Equipment Manufacturers (OEMs), while 750,000 to 800,000 units are earmarked for exports.

The allocated funds will be utilized for augmenting sales, bolstering service facilities, and enhancing spare parts infrastructure to nearly double domestic sales. Investments will also be channeled into expanding capacities at both existing and upcoming facilities. By FY 2030-31, Maruti Suzuki India envisages a product lineup comprising approximately 28 different models, spanning from internal combustion vehicles to electric vehicles (EVs).

The automaker predicts that about 15-20% of its vehicle sales in 2030-31 will be EVs, while around 25% may be hybrids. The remainder is expected to be powered by ethanol, Compressed Natural Gas (CNG), and possibly Compressed Bio Gas (CBG).