New Delhi. The country’s major automobile companies are preparing to make big investments in the current financial year. According to a Moneycontrol report, buoyed by record sales in FY24, the country’s top four passenger car (PV) manufacturers have committed to invest over Rs 1 lakh crore for the current financial year. With record-breaking sales of 42,30,000 passenger vehicles in India during FY 2023-2024, the confidence of automobile companies in the market has strengthened. Companies believe that the demand for vehicles will increase rapidly in the coming times, for which companies will have to be ready to increase production.
A significant portion of the investments by carmakers such as Maruti Suzuki, Hyundai Motor India, Tata Motors, Mahindra & Mahindra (M&M), and JSW-MG Motor India will be allocated to expanding capacity of internal combustion engine vehicles (ICEVs) to meet demand, with a large amount also directed towards platform, product, and technology development for electric vehicles (EVs).
Maruti Suzuki, one of the top carmakers, is aiming to regain its 50 per cent market share by the middle of the decade. A senior company official told Moneycontrol that the company plans to invest Rs 10,000 crore in various initiatives including new product launches and capacity expansion in the current financial year.
Hyundai Motor India Limited (HMIL), which has achieved its highest ever sales in calendar year 2023 and financial year 2023-24, has expressed keenness to spend Rs 13,180 crore in the medium term. Of this amount, about Rs 6,180 crore will be invested in building a greenfield facility in Chennai, Tamil Nadu and Rs 6,000-7,000 crore for overhauling production lines at the Talegaon facility in Maharashtra.
Homegrown auto major Mahindra & Mahindra (M&M) has announced plans to invest around Rs 27,000 crore during FY25-27 in product development, capacity expansion and technological advancements in the automotive division.
At the same time, Tata Motors has announced an investment of Rs 43,000 crore for products and technologies in 2024-25. Most of this, about Rs 35,000 crore, is expected to be invested by Jaguar Land Rover (JLR), the British arm of Tata Motors.
JSW MG Motor (formerly MG Motor India) recently revealed plans to invest Rs 5,000 crore to increase production capacity and launch a new car every 3-6 months from September. The joint venture between China’s SAIC and Indian conglomerate JSW Group aims to boost sales in the new energy vehicle segment.
A year after announcing plans to invest Rs 5,300 crore in India, Nissan Motor Corporation and Renault SA have revealed their future portfolio expansion, with four new sport utility vehicles (SUVs) expected to hit the market from 2025.
Tags: Auto News, Car Bike News
FIRST PUBLISHED : June 1, 2024, 06:14 IST