Construction and fitting out of Suzuki Motor’s new vehicle manufacturing plant in India has been completed and production should start on 1 February, the automaker said. The plant is owned and operated separately from the long standing Marutu Suzuki joint venture manufacturing and sales operations but will supply all its vehicles to Maruti.
Suzuki Motor Gujarat (SMG) is located in Ahmedabad, Gujarat state in India and is a 100% subsidiary of Suzuki Motor Corporation. The new assembly plant is in Hansalpur, also in Gujarat.
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SMG was established in March 2014 as Suzuki’s first 100% owned vehicle production company in India, aiming, the automaker said, “to secure production ability in preparation for the automobile market growth in India, as well as for expansion of exports.”
Located close to Mundra Port, the Gujarat plant will be an export hub for shipments to Europe, Africa, and Japan.
“By making it a different manufacturing company from Maruti Suzuki, Suzuki aims to enhance productivity and quality [of automobiles],” the automaker added.
First production will be the Baleno premium hatchback for sale through Maruti’s NEXA channel. The model line-up will be increased “according to the market situation”.
Maruti Suzuki built 1,515,000 units last year at its two plants in Gurgaon and Manesar which were operating at full capacity.
Gujarat is starting with capacity for 250,000 units but a second assemble plant – Gujarat Plant number 2 – and an engine/transmission plant are also planned, scheduled to start operation at the beginning of 2019.
With Plant 2 on line, Suzuki’s overall India capacity will be 2m units.
Suzuki Motor Gujarat is managed by resident director Naoki Aizawa, previously asenior managing officer of Suzuki Motor in Japan, and the plant occupies a 640 acre (2.6m square metre) site. Suzuki spent about JPY60bn (US$521m buildind the first plant and the second plant and engine/transmission factory will cost another JPY100bn.
Hyundai Motor has a similar dual-source arrangement in Brazil where its vehicles are assembled and sold both by an independent importer and by ‘factory-owned’ assembly/distribution companies.
Further analysis of Suzuki Motor and its Maruti Suzuki Indian unit is available in just-auto‘s research database QUBE.
