2 days ago
GST Reforms Boost Economy and Maruti’s Expansion Plans
Maruti Suzuki says new GST changes helped India’s economy keep growing during a difficult period.
The company’s chairman said GST reforms helped many industries, including car makers.
He also said tax collections stayed high despite the West Asia crisis.
Maruti expects India’s car industry to become much larger by 2031.
The company is preparing by building more factories and production lines.
It plans to spend Rs 77,500 crore over five years.
New production lines have opened in Haryana and Gujarat.
Maruti also plans a large new factory at Sanand in Gujarat.
Maruti Suzuki chairman R.C. Bhargava said GST 2.0 supported economic growth during the West Asia crisis.
He forecast India’s car industry would reach 6.1 million to 6.3 million units by 2031.
Maruti Suzuki plans Rs 77,500 crore in capital expenditure through FY2030-31.
The company’s installed capacity is expected to reach 2.9 million units by FY2026-27 and 3.65 million by FY2030-31.
New production lines are operating at Kharkhoda and Hansalpur, while a one-million-unit plant is planned at Sanand.
- Who
- Maruti Suzuki India chairman R.C. Bhargava and Managing Director and CEO Hisashi Takeuchi.
- What
- Maruti Suzuki discussed GST 2.0’s economic impact, India’s projected car-market growth, and the company’s expansion and capital-expenditure plans.
- Where
- The annual general meeting was addressed in New Delhi; the company’s expansion includes plants in Kharkhoda, Haryana, and Hansalpur and Sanand, Gujarat.
- When
- The remarks were made on Monday at Maruti Suzuki India’s annual general meeting; the expansion plan covers FY2026-27 through FY2030-31.
- Why
- Bhargava said GST reforms supported economic activity and helped the economy withstand the adverse impact of the West Asia crisis, while Maruti is expanding to meet expected demand.
Key facts
- Projected car industry size by 2031
- 6.1 million to 6.3 million units
- Planned capital expenditure
- Rs 77,500 crore through FY2030-31
- FY2026-27 capital expenditure
- Rs 14,000 crore, up from around Rs 10,000 crore the previous year
- Installed capacity by FY2026-27
- 2.9 million units
- Installed capacity by FY2030-31
- 3.65 million units
- Sanand planned capacity
- 1 million units, with proposed investment of about Rs 35,000 crore
- Hansalpur capacity
- 1 million units after commissioning of a fourth production line
Quotes
Hisashi Takeuchi
Managing Director and CEO of Maruti Suzuki India
“Regarding the capex side for FY26-27, we have planned a 40 per cent jump in capex expenditure in a single year, from around Rs 10,000 crore last year to Rs 14,000 crore this year. Cumulatively, during FY26-27 to FY30-31, we have planned a capex of Rs 77,500 crore”
thehansindia.com
“A fourth line of 2.5 lakh units capacity was commissioned in Hansalpur in Gujarat, raising total capacity to 1 million. This is Suzuki's largest plant anywhere in the world”
thehansindia.com
Sources
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