Maruti Suzuki to acquire Suzuki Motor Gujarat plant

Maruti Suzuki on Monday announced that it is terminating the agreement with Suzuki Motor Corporation for the latter's plant in Gujarat. Maruti Suzuki will acquire the shares of Suzuki Motor Gujarat Pvt Ltd (SMG) from Suzuki Motor Corporation (SMC), subject to legal and regulatory compliances. The Suzuki Motor Gujarat plant was supposed to be wholly owned by Suzuki Motor Corporation, but with the new move, it will be wholly owned by Maruti Suzuki.

Maruti Suzuki has also said that it plans to increase the production capacity to about 40 lakh cars per year by 2030-31, which is almost double from current levels. For this, the auto company is aiming to set up new plants. The car brand has said that it is currently studying the feasibility of setting up production facilities in multiple locations.

Meanwhile, the automaker has released its first quarter result, which shows that the auto company's profit has more than doubled based on the utility vehicles. Maruti Suzuki has been betting big on the series of SUVs and MPVs over the last few quarters and that strategy has paid off. Keeping an eye on the rising demand for SUVs and MPVs across India, just like the rest of the world, Maruti Suzuki has started increasingly focusing on utility vehicles through its Arena and Nexa retail outlets. The automaker has also expressed its ambition to grab the lion's share of the Indian utility vehicle market through its range of SUVs and MPVs.

The carmaker's sales volume benefitted significantly from the higher sales of pricier and margin-boosting utility vehicles. Maruti Suzuki posted a net profit of ₹24.85 billion for the quarter that ended on June 30. Interestingly, Maruti Suzuki's last quarter results were similar to its rival Tata Motors, whose profit too raced past estimates.