Maruti Suzuki, India’s biggest car maker by sales, is targeting annual production of 3 million units by 2025, and it sees car manufacturing cost coming down due to a new royalty formula signed with parent Suzuki Motor Corp.
“The contract manufacturing arrangement with Suzuki Motors Gujarat is working very satisfactorily,” RC Bhargava, chairman at Maruti Suzuki, said in a message to shareholders.
Maruti Suzuki has crossed production of 20 million vehicles in the country at its Gurgaon and Manesar factories earlier this week. This feat, achieved for the first time by a car-maker in the country, was achieved in 34 years and six months since the start of production in December 1983.
“The 20 million production milestone is a testimony of trust in brand Maruti Suzuki,” Kenichi Ayukawa, managing director and CEO at Maruti Suzuki India, said.
He said for over three decades, Maruti Suzuki has worked to listen and meet the evolving customer aspirations with contemporary products of global quality.
Maruti Suzuki had achieved the 1 million production milestone in March 1994, nearly after a decade of manufacturing cars in India. The 5 million milestone was achieved in April 2005, while 10 million was hit in March 2011. In the next seven years, the company achieved 20 million production milestone.
At present, Maruti Suzuki makes 16 models for the domestic market, and exports vehicles to more than 100 countries in Europe, Japan, Asia, Africa and Latin America.
In the company's annual report for 2017-18, Bhargava said the first production line is in full production and the second line will be commissioned early in 2019.
“Work has started on the third line and the expected commissioning is early 2020. We hope that the 2 million mark will be reached in the next financial year and the next goal is 3 million cars a year by 2025,” Bhargava had said the report.