There is a right time to do things and for the Indian auto industry, the right time for big investments is now! Two consecutive years of a strong double-digit growth post-Covid-19 has convinced car makers to loosen their purse strings and commit over $10 billion as investment into products and capacity expansion in the coming decade.
The investments will lead to an incremental capacity of a minimum 2.5 million units, taking the overall industry capacity to about 7.5-8 million units by 2030. This fresh capacity will come over the next five to eight years.
Some of it has already started coming on stream, the rest will be added as the new generation electric vehicles get ready for a rollout between 2024-2028.
A significant part of this investment will also go into upgrading products, launching new models and getting into the electric vehicle space in the coming years.
A quick look at who's doing what suggests that market leader Maruti Suzuki will be adding one million units out of its new factory in Kharkhoda, Haryana by 2028. The first 2.5 lakh units will be commissioned by 2025 itself, with plant construction in full swing at present.
In order to cater to the increased demand, the company has also decided to increase capacity at Manesar factory by one lakh units in 2024.
RC Bhargava, chairman of Maruti Suzuki recently said, "Maruti is not holding back on capex, we are spending a very large amount of money. We have just approved a big investment in Kharkhoda, Haryana. Suzuki is investing in Gujarat for battery and electric vehicle manufacturing plans.
Denne historien er fra 1st January 2023-utgaven av Autocar Professional.
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Denne historien er fra 1st January 2023-utgaven av Autocar Professional.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Spain's Fersa Group invests in India-based Delux Bearings
Besides theRs100 croreinvestment, the Indian company gets access toadvanced technologies and bearings with arange of applications that willhelpinits global growth strategy, writes Manobhava Baruah.
Tata Autocomp to open compact dual-clutch transmission plant
Amidthe country’s growing need for personal mobility with easy manoeuvrability, comes the demand for vehicles with automatic transmission. Tata AutoCompisready tomovein writes Shruti Mishra.
Pankaj Munjal-backed Hero Motors raises equity from GEF Cap
The company willinvest Rs1,500 crore over thenextthree years andit expects 60 percent ofits turnover to come fromelectric vehicle parts. Itaims to becomea Global EV Solutions Company from India
New age thermoplastics for next-generation EV batteries
Saudi-based global materials major SABIChas developed cutting edgein fire-resistant polymers and flame-retardant materials that comply with various EV battery safety standards across the world.
Switch Mobility to meet growing e-bus demand with fresh capex
Oncourse for abillion-dollar business, the company is exploringa possibility of operating satellite factories across the country to serve different geographies, write ShahkarAbidi and Ketan Thakkar.
Kia India to invest Rs 2,000 crore in EVS, to introduce new e-RV in 2025
New investmentto drive R&D, infrastructure development and manufacturing capabilities. The company willlocally produce EVsin India with possibility of exports as well, writes Mayank Dhingra.
"The government has given enough time for indigenisation but the industry has not taken it seriously"
Amitabh Saran, Founder and CEO, Altigreen, shares his views on problems inthe EV industry and battery localisation solutions with Amit Vijay M.
TATA MOTORS SEES ONE INTWO CARS SOLDAS EVS BY 2030
The company aims to offer wider choices withnew EVs that may straddle a pricebracket of Rs20to 40lakhinthe coming years, writes Ketan Thakkar.
MG Motor India in expansion drive, to invest $100 million
The investment willbe usedtoramp up existing production capacity from1.2to1.4-15lakh units per annum atthe automaker's Halol plantin Gujarat, writes Ketan Thakkar.
"Technology and its multiplier effect are driving business transformations and customer experiences"
Technical Centre India is one of Continental’s largest research and development centres in the world, andasa Centre of Competence’ it also develops customised products for the BRIC countries.
