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NEW DELHI: Maruti Suzuki‘s capex till 2030-31 could be around Rs 1.3 lakh crore as the company plans to enhance product range to 28 models from 17 currently and expand production capacity, according to a regulatory filing.
The country’s largest carmaker is lining up capex to expand total production capacity to 40 lakh units per annum by 2030-31.
“The regular capex in the existing plants at Gurgaon, Manesar and Gujarat will continue. The amount in 2022-23 was around Rs 7,500 crore. Total capex till 2030-31 could be as much as Rs 1.25 lakh crore,” Maruti said.
In a presentation for shareholders, analysts and proxy advisors, the auto major stated that it will need about Rs 45,000 crore to create a capacity of 20 lakh units. This is based on current costs and a small amount for cost escalation.
On the benefits of issuing shares on a preferential basis to Suzuki Motor Corporation rather than utilising cash for the acquisition of Suzuki Motor Gujarat, the company said funds would be needed for creating the sales, service and spare parts infrastructure to almost double domestic sale volumes.
“The infrastructure for exporting the much larger volume of cars will also have to be strengthened. The conversion of production lines to have greater flexibility will need additional capex,” it said. Capex will also be needed to develop 10-11 new models with different fuel options in this period, Maruti Suzuki said.Production of EVs and SUVs will need larger capex, the company stated.
The country’s largest carmaker is lining up capex to expand total production capacity to 40 lakh units per annum by 2030-31.
“The regular capex in the existing plants at Gurgaon, Manesar and Gujarat will continue. The amount in 2022-23 was around Rs 7,500 crore. Total capex till 2030-31 could be as much as Rs 1.25 lakh crore,” Maruti said.
In a presentation for shareholders, analysts and proxy advisors, the auto major stated that it will need about Rs 45,000 crore to create a capacity of 20 lakh units. This is based on current costs and a small amount for cost escalation.
On the benefits of issuing shares on a preferential basis to Suzuki Motor Corporation rather than utilising cash for the acquisition of Suzuki Motor Gujarat, the company said funds would be needed for creating the sales, service and spare parts infrastructure to almost double domestic sale volumes.
“The infrastructure for exporting the much larger volume of cars will also have to be strengthened. The conversion of production lines to have greater flexibility will need additional capex,” it said. Capex will also be needed to develop 10-11 new models with different fuel options in this period, Maruti Suzuki said.Production of EVs and SUVs will need larger capex, the company stated.
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