Suzuki Set To Build A Mega Factory In India

Suzuki plans to build a plant in India that will make as many as one million vehicles a year. It will be the company’s fifth factory in India, where it already produces 2.6 million cars.

The plan of the Japanese car manufacturer “Suzuki” is to build a new, “giant” factory in India, a facility that will produce as many as one million cars per year.

The company, based in the city of Hamamatsu, according to Japanese media, has purchased seven square kilometers of land worth 550 million dollars in the Indian state of Gujarat, where it will build its fifth factory in that large South Asian country.

The curiosity is that as many vehicles will be produced in that complex as in all three “Suzuki” car factories in Japan together.

When the new plant in Gujarat is completed and production reaches its peak, Suzuki, which has become Japan’s third-largest carmaker by overtaking the floundering Nissan, will make a total of 3.6 million vehicles a year in India.

For the sake of comparison, in Japan, where business costs are many times higher than in India, Suzuki intends to keep production at around one million units.

Back in 2007, the company started producing more cars in India than in Japan.

It is expected that due to the shortage of chips for cars, which has particularly affected the currently second-placed Honda, Suzuki will push that company during this year and take second place among the largest Japanese car manufacturers behind the undisputed Toyota.

By the way, a total of 5.26 million passenger cars and commercial vehicles were sold in India in fiscal year 2024, and “Suzuki” through its subsidiary “Maruti-Suzuki” holds as much as 40 percent of the market share in that subcontinent.

The management of the Japanese company expects that in the future, with the growth of the middle class, the demand for cars in India will also grow rapidly.

Suzuki vehicles produced in India, apart from being sold on the Indian market, which is now the third largest in the world after China and the USA, are exported to Europe as well as to the homeland.

The Japanese media recently reported that the last calendar year saw a record import of cars into their country and that the largest number of these vehicles came from India, primarily from the factories of “Suzuki,” but also of “Honda.”

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