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Jeet B Bhayani (SEBI RA)

13th Jan · SEBI-Registered Analyst

Maruti Suzuki India Limited will set up a new manufacturing facility in Gujarat to create one million more vehicles each year. This will boost Maruti Suzuki's ability to produce and help meet the rising demand for new cars across India. The new facility will be located in the Khoraj Industrial Zone and will enable Maruti Suzuki to expand its production capacity for new vehicle sales throughout India. The board has given its approval to make a preliminary investment of Rs. 4,960 crore (US$ 598 million) to acquire, develop, and prepare land for factory activities. Funding for this will come from both internally generated resources and outside loans. The growth is a component of a broader effort by Maruti Suzuki and its parent, Suzuki Motor Corporation, to enhance manufacturing capacity in India and establish the country as a worldwide automotive manufacturing center. With the growth of domestic sales for entry-level vehicles and the anticipation of continued increases, there is a heightened demand for production capacity for these items. The Company’s latest sales figures have been robust, as shown by increasing dealer sales. The expanded capacity will aid in supporting upcoming domestic sales increases, future export strategies, and further solidify India’s role in the global automotive supply network.

MARUTI

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