Maruti Suzuki making production lines flexible, aims to roll out both ICE and EVs

Maruti Suzuki is making its production lines flexible to roll out both internal combustion engine-propelled and electric vehicles. This strategy of making its production capabilities flexible will allow Maruti Suzuki to roll out more models from the production lines, which will eventually push the company's production volume from the same manufacturing setup.

Maruti Suzuki is looking to add another 20 lakh unit production capacity to its kitty by 2030-31, with about 28 different passenger vehicles in the market. The biggest car manufacturer in India currently has a production capability of around 26 lakh units per annum across its production plans in Haryana and Gujarat. The company has also commenced production at its new plant in Kharkhoda. The new facility will have an annual production capacity of 2.5 lakh units and produce the compact SUV Maruti Suzuki Brezza, PTI has reported. Besides that, Suzuki Motor Gujarat, a unit of the company, has also set up a facility in Gujarat with an installed production capacity of 7.5 lakh units per year.

Speaking about the production strategy, Maruti Suzuki India Senior Executive Officer (Corporate Affairs) Rahul Bharti said in an analyst call that the company is increasingly making its plants more flexible so that more production lines can manufacture more models. "We are also taking care that the newer lines that are established can also manufacture EVS," he further added.

Maruti Suzuki is planning to launch its first electric car, the e Vitara, in September 2025. The majority of the production in the first year for this electric SUV will be meant for the overseas markets. Speaking on this, Bharti said that electric vehicles are far heavier vehicles than the traditional models due to the battery weight and the enhanced body strength to handle that weight. "So, there is some difference in the production line on that account. But we are making it flexible, whether it is in Gujarat or Kharkhoda (Haryana)," he said while also adding, “The utilisation is something that we have to closely watch, and the operating leverage associated with it. That is something we will be watchful of."

On a question regarding the profitability of the EVs, he noted that the company is conscious that, by design, electric vehicles will have a much lower profitability, and that's true for the entire industry. "We can't expect EVs to have the same level of profitability as IC engines. And if they were, then the government probably doesn't need to have a 5 per cent GST or so many schemes or so many support policies on that. So, we have to be conscious of that," Bharti said.

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