Indian prime minister Narendra Modi (right) and Toshihiro Suzuki, president, Suzuki, at an event at which the announcement was made

Suzuki’s Indian subsidiary, Maruti Suzuki India, said it had “has “reached an understanding” with the state of Gujarat for construction of a new automobile production plant.

The new plant would start operation in FY2028-29 with eventual annual capacity of 1m units and investment of INR350bn excluding land acquisition.

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Suzuki also announced the establishment of a fourth production line at Suzuki Motor Gujarat (SMG) by investing INR32bn, in view of increasing production of electric vehicles in the future.

The fourth line was expected to start operation from FY2026. With the completion of the fourth line, annual production capacity at SMG will increase from the current 750,000 units to 1 million units.

Suzuki plans capacity for 4m units in India by FY2030 to prepare for future expansion of the market there. Another new plant in Kharkhoda (Haryana state) starts operation in 2025.

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