Haryana government has allotted Maruti Suzuki 900 acres in Sonipat for a third factory; Maruti Suzuki Share zooms 7%

Maruti Suzuki will open a new production factory in Sonipat, Haryana, in the Very soon. The Haryana state government has given the Indo-Japanese manufacturer permission to build a new production plant on over 900 acres of land in Kharkhoda, Sonipat district, according to Haryana Chief Minister Manohar Lal Khattar. After this news Share of Maruti Suzuki zooms to 7%

The new Sonipat factory of Maruti Suzuki is expected to produce at least 7.5 lakh units per annum

Maruti Suzuki is likely to start work on its new factory in Sonipat, Haryana, soon after the state government approved 900 acres for the firm.

Manohar Lal Khattar, the Chief Minister of Haryana, recently declared that the proposal to build the factory on 900 acres of land in Kharkhoda, Sonipat district, has been finalised.

It has been revealed that Maruti will utilise 900 acres of the property to build its third factory in the state, while Suzuki will use the remaining 100 acres to build a 2-wheeler manufacturing facility.

The company already has production facilities in Gurugram (capacity of 7 lakh units) and Manesar (capacity of 8 lakh units), as well as a research and development (R&D) centre in Rohtak.

Maruti would have to pay Rs. 2.96 crores per acre for the property, and the Haryana government claims that if the business pays the money within 45 days, it will receive a 10% discount on the overall payment.

Furthermore, the State government has granted the corporation SGST reimbursement for a period of 15 years, with the intention that the new plant and other auxiliary units will produce around 1 lakh new jobs.

Maruti is projected to need roughly 30 months to develop the factory, which is expected to have a manufacturing capacity of at least 7.5 lakh cars per year, with operations beginning in the third year.

The company has already boosted its capital expenditure (capex) budget for the factory by Rs. 2200 crores this fiscal year and has a 10-year investment plan totaling Rs. 18,000 crores.

With the new Sonipat factory’s increased production capacity, Maruti would be able to create at least 22.5 lakh cars on its own, while Suzuki Motor Gujarat (SMG) would be able to produce an additional 7.5 lakh cars each year.