Addressing shareholders in the company’s annual report for 2022-23, Bhargava said the company will, as soon as possible, announce what it is proposing for its next stage of growth.
“Your company now has to add the next 2 million in a period of 9 years. The task of managing all the issues relating to the production of 4 million units a year requires considerable thought and possible reorganisation of the structure of the company keeping in view the best interests of all shareholders as well as other stakeholders of the company. We will, as soon as possible, announce what we are proposing,” he told shareholders in his written message.
Maruti Suzuki India Limited yesterday released its Annual Integrated Report for the financial year 2022-23. titled ‘Maruti Suzuki 3.0’.
It took 40 years for it to create a capacity of 2 million units. The required investments will all come from internal resources, he stated.
The overall auto industry, according to him, is expected to grow at a 6 per cent rate till 2030-31. In 2023-24, Maruti Suzuki India expects to grow at a slightly higher rate.”Along with the rising domestic demand, the prospects for exports are also expected to continue to improve,” he said.Further, stating that its exports rose to 259,000 units last year, the company now expects the demand for exports to continue to grow and export volumes are projected at 750,000-800,000 cars by 2030-31.
“The domestic plus export requirements have made it necessary for your company to add another 2 million manufacturing capacity. Work is progressing at the first site in Kharkhoda (Haryana), and it is expected that the first plant of 250,000 capacity will start production in the first half of 2025,” he said.
“Thereafter, one similar plant will be added each year to reach a capacity of one million. At the same time, we are in the process of selecting a second site for adding another one million capacity by FY 2030-31,” Bhargava said.
By 2030-31, it said the company could have about 28 different models. The development of electric vehicles is proceeding at the Gujarat facility and it expects to start the sale of the first model in 2024-25. By 2030-31, 6 EV models are expected.