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Maruti Suzuki's EV Export Push: A Strategic Win for Investors

Maruti Suzuki Boosts Production for ICE and Electric Vehicles

Maruti Suzuki Boosts Production for ICE and Electric Vehicles

India’s largest automaker plans to enhance production flexibility, enabling the simultaneous rollout of internal combustion and electric vehicle models. By FY2031, the company aims to add 20 lakh additional capacity and have a 28-model portfolio.

Summary:

Maruti Suzuki, India’s top carmaker, is reengineering its production strategy to support internal combustion engine (ICE) and electric vehicle (EV) models from the same assembly lines. The move aligns with its long-term target of adding 2 million units of annual capacity by 2031. With the new Kharkhoda plant already operational and the highly anticipated e-Vitara EV launch around the corner, Maruti Suzuki is poised to offer a diverse portfolio of 28 models to maintain leadership in a rapidly transforming auto industry.

Maruti Suzuki’s Dual EV Production Strategy

Maruti Suzuki India Limited (MSIL) is upgrading its manufacturing facilities to support the production of both internal combustion engine (ICE) and electric vehicles (EVs) on a unified platform, reflecting the company’s strategic push toward a flexible and future-ready product line. The move signals Maruti’s pragmatic and forward-looking approach as the Indian automotive market begins transitioning toward cleaner mobility options while ICE vehicles continue the current demand landscape.
This flexibility in manufacturing is a cornerstone of Maruti’s Vision 3.0, which aims to double down on capacity expansion, product diversification, and technological innovation by the end of this decade.

20 Lakh Units Additional Production Capacity by FY2031

Maruti Suzuki has revealed that it plans to add 2 million (20 lakh) units of annual production capacity by FY2031, bringing its total production capacity to over 4 million vehicles per year. This significant expansion will be driven by:
New facilities like the Kharkhoda plant in Haryana, which has already started rolling out models,
Upgrades to existing factories in Manesar, Gurgaon, and Gujarat,
Introduction of new vehicle platforms and modular manufacturing systems.
The increased capacity will be crucial to meeting the growing demand for ICE and EVs and supporting exports from India as the company seeks a larger share of international markets.

Kharkhoda Plant: Maruti’s Next-Gen Manufacturing Hub

The newly commissioned Kharkhoda plant in Haryana, which is spread across 800 acres, has begun production and is positioned as Maruti Suzuki’s flagship manufacturing hub for the next generation of automobiles. The facility is designed with a high level of automation, digitization, and multi-energy platform capability, making it the epicentre of Maruti’s flexible manufacturing strategy.
In its initial phase, the Kharkhoda plant will contribute 2.5 lakh units annually, with a phased ramp-up to 10 lakh units per year as new models—especially EVs—are launched.

28 Models by 2031: Diversification to Meet Evolving Demand

Currently offering 17 models across hatchbacks, sedans, SUVs, and MPVs, Maruti Suzuki aims to expand its product portfolio to 28 models by 2031. This will include:
Multiple EVs across segments (e.g., compact SUV, premium hatchback, and possibly MPV),
Continuation and modernization of ICE models to meet evolving emission norms,
New CNG and flex-fuel options are available in select segments.
The diversified portfolio is intended to cater to urban EV adopters, rural ICE loyalists, and eco-conscious hybrid customers, making Maruti a one-stop solution for every type of buyer.

e-Vitara: Maruti’s First EV Set for Launch

The e-Vitara, a battery-electric variant of Maruti’s well-loved compact SUV, will be the brand’s first electric vehicle, anticipated to debut in 2025. The model will be based on a dedicated EV platform jointly developed with Suzuki Motor Corporation and Toyota.
Introduce hybrid solutions that connect internal combustion engine (ICE) vehicles with electric vehicles (EVs).
It will feature regenerative braking, fast charging, and connected car technologies.
The EV will be manufactured in India and likely be exported to European and Asian markets.
With this launch, Maruti Suzuki enters the EV market with a competitive offering while leveraging its scale and dealership network for rapid market penetration.

Flexibility = Future-Readiness

With the auto industry evolving unprecedentedly, flexibility is now the keyword for success. Maruti’s decision to revamp its production lines to handle multi-energy vehicles positions it ahead of many competitors still relying on segregated production setups.
This move also offers:
Faster go-to-market timelines for new models,
Improved cost efficiency through shared platforms,
Reduced capex as the same infrastructure serves multiple drivetrain options.
Maruti’s scalable modular platforms, similar to Toyota’s TNGA and VW’s MQB, are optimized to handle ICE, hybrid, and electric variants with minimal modifications, allowing it to remain agile and responsive.

Policy Support and Market Tailwinds

Maruti’s strategy for electric vehicles and production aligns with India’s national goals.
The FAME II scheme and PLI incentives for battery and EV manufacturing,
A growing charging infrastructure across urban and semi-urban locations,
Rising customer awareness about green mobility and total cost of ownership of EVs.
Furthermore, states like Gujarat, Maharashtra, and Tamil Nadu offer EV-friendly policies, making it conducive for Maruti to scale up nationwide.

Conclusion: Maruti Sets the Tone for India’s Dual-Track Auto Future

Maruti Suzuki’s decision to integrate ICE and EV production marks a pivotal shift in India’s automotive manufacturing strategy. The company is creating a robust bridge between traditional mobility and the electric future by embracing flexibility and committing to large-scale capacity expansion.
As India’s auto market becomes more diverse and technology-driven, Maruti’s strategy to offer 28 models by 2031, backed by next-gen facilities like Kharkhoda, will likely ensure that it not only retains its market leadership but also sets the benchmark for innovation, scale, and adaptability in Indian manufacturing.

 

 

 

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