India's largest carmaker, Maruti Suzuki Ltd announces an investment of Rs 7,410 crore to build a third factory at Kharkhoda in Haryana, to expand production capacity to meet the rising domestic demand as well as exports.

The Board of Directors of the company convened and authorized the creation of a third manufacturing facility in Kharkhoda, with a planned production capacity of 250,000 vehicles annually, according to reports.

The new factory is projected to begin operations by 2029, which will increase the overall capacity at Kharkhoda to 750,000 vehicles per year.

The investment will be funded through internal accruals. The Kharkhoda plant is a greenfield project where the first factory started commercial operations in February this year to produce the compact SUV Brezza.

Suzuki Motor Corporation from Japan, which is the parent company of Maruti Suzuki India, revealed a revised mid-term strategy last month in response to changes in the business landscape caused by a decrease in market share in India and the rise of the electric vehicles sector.

In its updated plan for 2025-30, the company has designated India as its primary market. Maruti Suzuki plans to establish manufacturing capabilities to produce 4 million vehicles annually to regain a 50 percent market share in India and position the country as a global export hub as well.

The auto major plans to expand its EV lineup starting with the e-Vitara, and is aiming to launch four new EV models by FY30 in a segment where its rivals like Tata Motors and Mahindra & Mahindra already have a varied EV portfolio in India.

 

Besides, Maruti Suzuki reported a 16 per cent increase in net profit to Rs 3,727 crore for the October-December quarter of the current financial year compared to the corresponding figure of Rs 3,206.8 crore in the same quarter last year.

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The company’s revenue from operations rose 15.7 per cent year-on-year to Rs 38,764.3 crore on the back of higher sales from Rs 33,512.8 crore in the same quarter of the previous year.