- 29 Aug 2022
- ICICIdirect Research
Maruti Suzuki lays foundation stone for new facilityMARUTI - 8270 Change: 27.05 (0.33 %)
News: In regulatory exchange filing Maruti Suzuki informed exchanges about the Prime Minister laying the foundation stone of Suzuki Motor’s Gujarat electric vehicle battery manufacturing facility at Hansalpur, Gujarat and virtually doing the same for Maruti Suzuki’s (MSIL) vehicle manufacturing facility in Kharkhoda, Haryana.
View: MSIL has a present capacity of ~15 lakh units in Haryana and ~7.5 lakh units in FY23E from SMG plant in Gujarat. With sales volume expectation of ~20 lakh units, the new greenfield capex comes at an opportune time. In an earlier notification for this new plant the company has disclosed the initial capex of overRs 10,000 crore for a capacity of 2.5 lakh units in first phase. The said expansion bodes well for the company as the PV space still remains underpenetrated in India. The company also remains committed to captive EV launch by 2025 and regaining loss market share through new offerings in the SUV space.