TOKYO: Japanese carmaker Suzuki is drawing aggressive plans to sell five million vehicles in India by 2030 through Maruti in an attempt to remain the market leader with a 50 per cent share. This will be a near three-fold jump from its current sales volume and the auto major, which sits on a cash pile of $13 billion (including Maruti’s $5 billion) is getting ready to invest further in its most promising market.
It expects the Indian market to grow to 10 million units annually by 2030 and it intends to control half the market then, like it does now. “The group will reinforce the sales network and service network globally. In India, in particular, although we currently have acquired the majority share in the passenger car sector, we would like to secure the majority share even in 2030. We will proactively deal with ways to realise this in detail,” said Suzuki Motor Corp (SMC) noted in its latest annual report released last week, report agencies.SMC has already invested Rs 134 billion in a Gujarat facility, its first in India. It is now looking to invest Rs 90 billion in a new manufacturing unit in Gujarat. The existing unit at Hansalpur makes cars that get sold through Maruti Suzuki network. The existing plant will produce 750,000 units when the third phase becomes operational in about a year.
A senior Gujarat government official told Business Standard that the company has bought a private land adjacent to the existing plant. “All such large industries get three kinds of benefits from the government including a subsidy for skill development, concession in power tariffs for initial years and refund of state goods and services tax (SGST), as compared to VAT refund under the previous tax regime.” The SGST refund is for cars sold in Gujarat. According to the official, the new plant may employ 6,000 people directly and will have a total annual capacity of 750,000 cars, set up in a phased manner.