Ahmedabad-based Suzuki Motor Gujarat (SMG) is a wholly-owned subsidiary of Japan’s Suzuki Motor Corporation (SMC). At present, SMC holds 100% equity capital of SMG. In a statement, Maruti Suzuki India said that the turnover of SMG in FY23 was Rs 318,525 million.
“EV production at the Gujarat facility will now be done by Maruti Suzuki instead of Suzuki Motor Corporation. Acquisition of Gujarat Plant will be completed by FY24 end,” said RC Bhargava, Chairman of Maruti Suzuki India. “We have not arrived at any valuation of Suzuki’s stake, it depends on the book value. Suzuki’s Battery plant will be independent of this transaction. Open to buy the battery plant from Suzuki but we have not taken a final call. Once we take over the plant, employees of the Gujarat facility will be now part of MSIL’s workforce”, he added.
Maruti Suzuki said that with the growth of the Indian car market and potential for exports, MSIL needs to increase its production capacity to about four million cars per annum by 2030-31, almost double from current levels. This will happen in multiple locations, some of which are known and some are being studied.
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In response to the carbon neutrality requirements, different powertrain technologies, including EVs, Hybrids, CNG, Ethanol, etc., will coexist for a reasonably long period. However, managing the production at such a large scale with multiple powertrains, under different managements, will present several challenges, according to Maruti.
In terms of actual production, logistics, sales, and the cost thereof, there will be no change as the cars supplied earlier by SMG as a contract manufacturer, will now continue to be supplied as before, a company statement read.
Maruti Suzuki India on July 31 reported a net profit of Rs 2,485.1 crore, witnessing an increase of 145.5 percent during Q1 FY24. The company’s revenue for Q1 Fy24 grew 22 percent YoY to Rs 32,326.94 crore.