Maruti to launch more SUVs, to invest ₹7,000 crore till March

India's largest car manufacturing company Maruti Suzuki India Limited is planning to step up its game in the SUV segment in coming days. The carmaker has announced it will invest more than ₹7,000 crore this year which will be used for development of new SUV models besides other areas. Maruti had made its SUV plans clear when it launched the new generation Brezza earlier this year. The Grand Vitara was one of the biggest launches from Maruti Suzuki just before the festive month. Among the upcoming SUV, Maruti is reportedly planning a three-row SUV as well.

Maruti's ₹7,000-crore investment will also be utilised to construct its newest facility near Sonipat, Haryana. Maruti had announced an investment of ₹11,000 crore in the first phase of the Sonipat facility. The facility located in Kharkhoda will be its third factory in the country. Maruti aims to make it operational in the next three years and expects to produce around 2.5 lakh units annually in the first phase.

Maruti currently manufactures over 22 lakh cars every year at its existing facilities in across the country, including the Suzuki facility in Gujarat. The Manesar and Gurugram plants in Haryana roll out around 15.5 lakh units annually.

Ajay Seth, Chief Financial Officer at Maruti Suzuki, said, "All the new model launches that we are doing where we have to have the investment on toolings, et cetera, I think that will be another large piece of capex. So, these are two areas where the capex will be maximum."

"Going forward, the company will strive to further strengthen its SUV portfolio to dominate the SUV segment, just like all other segments," he added. Seth said Maruti is now keen to bring in more models in the SUV segment after the success of both Brezza and Grand Vitara.

Supply chain issues affected Maruti's production this year. It failed to manufacture around 35,000 cars in the current year due to electronics component shortages. Maruti currently has a backlog of 4.12 lakh vehicles at the end of second quarter. Its latest models, which also include Brezza and Grand Vitara, have pending bookings of around 1.3 lakh.

Check out Upcoming Cars in India 2024, Best SUVs in India.