Suzuki plans to set up production units in Haryana

India: On the fourth day of the ‘Make in India’ week in Mumbai, Japanese carmaker Suzuki revealed its plans to set up production plants in Haryana in coming years. Suzuki Motors has already announced an investment of INR18,000 crores in Gujarat to set up multiple units with a total production capacity of around 1.5 million units.

Currently, Suzuki Motor Corporation’s new car manufacturing unit is being constructed in Hansalpur village of Ahmedabad district in Gujarat, which is expected to be ready by 2017. The plant is coming up at an estimated investment of INR4,000 crores and will have an initial capacity of 1,50,000 units per year.

Manohar Lal Khattar, the Chief Minister of Haryana said, “We have spoken to the Suzuki chief executive officer in Japan and has conveyed that the company is interested in setting up another project in Haryana.” In March 2016, Haryana will host “Happening Haryana Global Investors Summit” to allure investments in the state. He further said, “All clearances and processes have been made time-bound and put under one roof. We are working hard on improving the ease of doing business. In fact, we have already exceeded our target of attracting INR1 lakh crore investments to the state.”

The recent report published by TechSci Research, “India Tyre Market Forecast and Opportunities, 2020” depicts that India is the seventh largest vehicle producer in the world, with an average annual production of more than 20 million vehicles in 2014. Almost all major global automobile manufacturers operate in India. This creates huge opportunity for tyre manufacturers in the country.

As per TechSci Research, this announcement by a major car manufacturer in the country will drive the demand for OEM tyres and will strengthen Suzuki’s hold in the country’s automobile market, as the brand already captures majority of the car market in India.