Total capex till 2030-31 could be around Rs 1.25 lakh crore: Maruti
Maruti Suzuki India (MSI) is planning capital expenditures (capex) until 2030-31 amounting to approximately Rs 1.25 lakh crore, the company said in a stock exchange filing on Monday. The company's strategy involves expanding its current product lineup from 17 models to 28 while increasing its production capacity.
Maruti aims to have a total production capacity of 40 lakh units annually by 2030-31, it said in a presentation to shareholders. MSI aims to continue regular capex in their existing plants located in Gurugram, Manesar, and Gujarat, which amounted to around Rs 7,500 crore in the fiscal year 2022-23.
The company said it requires approximately Rs 45,000 crore to create a production capacity of 20 lakh units. This estimate considers current costs with a minor allowance for potential cost increases.
Elaborating on the benefits of issuing shares on a preferential basis to Suzuki Motor Corporation (SMC) rather than utilising cash for the acquisition of Suzuki Motor Gujarat (SMG), the company said funds would be needed for creating the sales, service and spare parts infrastructure to almost double domestic sale volumes.
«The infrastructure for exporting the much larger volume of cars will also have to be strengthened.
The conversion of production lines to have greater flexibility will need additional capex» it said.
R&D will need additional outlays to enable most of the development work relating to internal combustion engine (ICE) cars being done by the company, it added.
They also mentioned plans to develop 10-11 new models with various fuel options during this period. The production of electric vehicles (EVs) and SUVs would require significant capital expenditures, it said.
«Payout of over Rs 12,500 crore for
