Maruti Suzuki India planned to double its production capacity to 40 lakh units in nine years, said Chairman R C Bhargava on Saturday. Mr Bhargava hinted that the automaker might reorganise its structure to achieve the ambitious plan, termed Maruti 3.0. 

Addressing shareholders in the company’s annual report for 2022-23, Mr Bhargava stated that he expected the company to grow at over 6 per cent during FY24. He also projected a 6 per cent growth rate for the country’s car industry until FY31. 

“Our first phase was when we were a public enterprise. The second phase ended with the COVID pandemic, and the Indian car market became the third largest in the world,” he said, adding that it took 40 years to create a capacity of 20 lakh units. 

“Your company now has to add the next 2 million (20 lakh) in a period of nine years. The task of managing all the issues relating to the production of 4 million (40 lakh) units a year requires considerable thought and possible reorganisation of the structure of the company.... We will as soon as possible announce what we are proposing,” he said. 

Mr Bhargava highlighted that in FY23, the company’s exports had reached 2.59 lakh units, and it anticipated a continued growth in demand for exports. As a result, the company projected export volumes to reach around 8,00,000 cars by FY31. 

Due to increasing domestic and export requirements, Maruti Suzuki India had recognised the need to expand its manufacturing capacity, he said. 

Outlining the expansion plan, Mr Bhargava said that the company was working on the first site in Kharkhoda, Haryana, where a plant with a capacity of 2.50 lakh units was expected to commence production in the first half of 2025. 

Subsequently, Maruti Suzuki plans to add a similar plant each year to achieve a total capacity of 10 lakh units. Additionally, the company is in the process of selecting a second site to add another 10 lakh capacity by FY31.