New Delhi: Suzuki Motor Corp is considering setting up fourth production line of 2.5 lakh units at its Gujarat plant to take its total capacity to a million units, according to Maruti Suzuki India chairman R.C. Bhargava.
The Japanese firm along with partners will set up the proposed lithium-ion battery production plant in Gujarat.
“The Gujarat facility which Suzuki has set up, the first line of 2.5 units has been already commissioned, work is going on the second and third lines that will increase the Gujarat plant capacity to 7.5 million units in 2-3 years," Bhargava said.
Fourth line of similar capacity (2.5 lakh units per annum) is presently under review, he added. He however did not share financial details.
The Hansalpur—based facility in Gujarat is the Suzuki Motor Corp’s first wholly—owned unit in India.
Bhargava said that the company will reach 2 million car sales in 2020 and 2.5 million cars two three years later. “So that is the kind of growth we are planning and investing on currently," He said.
Maruti Suzuki India, a subsidiary of Suzuki Motor Corp, produces 1.5 million cars from its two plants in Haryana.
Commenting on the lithium ion battery plant, Bhargava said it will come up in Gujarat. In April, Suzuki had announced joining hands with Toshiba Corporation and Denso to set up a plant in India to produce lithium ion batteries, entailing an investment of ¥20 billion (nearly Rs1,200 crore).
At the time of announcement, the Japanese firm had not confirmed the place where the plant would come up. The three Japanese entities have signed an agreement to form a joint venture, which is aimed at tapping into the growing popularity for electric vehicles in India. The joint venture will ensure stable supply of lithium- ion battery packs in the country.