Maruti Suzuki India Limited today released its Annual Integrated Report for Financial Year 2022-23. Titled ‘Maruti Suzuki 3.0’, the report can be accessed via the link- Company Report- Maruti Suzuki India Limited.
Description automatically generated a rich legacy of 4 decades, Maruti Suzuki has played a significant role in shaping the Indian automobile industry. From a humble start of manufacturing about 20,000 cars in a year, to manufacturing close to 2 million cars a year in FY 2022-23, the Company has delighted over 27 million customers in India and around 100 countries of the world. Maruti Suzuki today offers a range of feature-rich, safe, environment-friendly vehicles with world-class quality at affordable prices.
The Company played a pioneering role in building the local component manufacturing system, expanding network, introducing new-age products and advanced technologies, and developing the value chain, augmenting the Company’s leadership position. Maruti Suzuki has embarked on an ambitious path in terms of manufacturing scale while at the same time transiting through a low-carbon path. This marks a new phase for the Company.
Explaining the genesis of Maruti Suzuki 3.0, Mr. R. C. Bhargava, Chairman, Maruti Suzuki India Limited, said, “Our first phase was when we were a public enterprise. The second phase ended with the COVID-19 pandemic, and the Indian car market became the third largest in the world… It took us 40 years to create a capacity of 2 million units and Suzuki Motor Corporation helped in this process by establishing the Gujarat facility. Your Company now has to add the next 2 million in a period of 9 years.”
Expressing his confidence in the global economy, Mr. Bhargava shared, “Our exports rose to 259,000 units last year. We expect the demand for exports to continue to grow and export volumes are projected at 750,000-800,000 cars by FY 2030-31.”
Mr. Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India Limited said, “With expanding capacity, offering multiple carbon reduction technologies, bringing many new products, we are writing a new chapter in the history of the Company – ‘Maruti Suzuki 3.0’.”
Aiming for further efficiency of automobile production business in India to meet the needs for growing market and carbon neutrality, Suzuki Motor Corporation (“Suzuki”), Maruti Suzuki India Limited (“MSIL”), and Suzuki Motor Gujarat Private Limited (“SMG”) have each recently approved at their board meeting held on 31 July 2023, that SMG, a wholly owned subsidiary of Suzuki, will become a subsidiary of MSIL.
SMG entered into a contract manufacturing agreement with MSIL and commenced production of automobiles in 2017. All vehicles are supplied to MSIL. MSIL has a right to acquire all the shares of SMG held by Suzuki if the contract manufacturing agreement is terminated. SMG will become a subsidiary of MSIL through termination of the contract manufacturing agreement and acquisition of all the shares of SMG held by Suzuki.
The subsidiarization of SMG by MSIL is subject to an approval by shareholders of MSIL and an approval of the Government of India, as necessary. While it depends on the progress of the future procedures, it is expected that the subsidiarization will be completed by the end of this financial year.
This change to the manufacturing structure aims to further enhance competitiveness by enhancing the efficiency of production operations through integration of manufacturing of automobiles in India to MSIL. MSIL has announced construction of new plants having manufacturing capacity of one million units in addition to manufacturing at the existing plants and the new plants in Kharkhoda (State of Haryana) which are planned to start operations in 2025. MSIL plans to secure a production capacity of approximately four million units in India by the financial year 2030 and MSIL will make investment necessary for such increase of capacity.
On the other hand, with the aim of further strengthening research and development on future technologies, Suzuki will utilize Suzuki R&D Center India Private Limited, a wholly owned subsidiary in India of Suzuki, to make investments in development of technologies in advanced fields, manufacturing of batteries for electric vehicle (BEV), and biogas business, etc.