Country’s largest passenger vehicles (PVs) manufacturer, on Monday has increased its capex outlay and said will invest around ₹77,500 crore till financial year 2030-31 (FY31) on capacity expansion across its plants and new products.
The company is also launching seven new vehicles in the coming years, Hisashi Takeuchi, Managing Director and Chief Executive Officer, MSIL, said while responding to queries from the shareholders during the 45th annual general meeting (AGM).
“Regarding the capex side for FY26-27, we have planned a 40 per cent jump in capex expenditure in a single year, from around ₹10,000 crore last year to ₹14,000 crore this year. Cumulatively, during FY26-27 to FY30-31, we have planned a capex of ₹77,500 crore,” he said.
Takeuchi said the major allocations would go towards capacity expansion, new model development, research and development (R&D), plant maintenance, marketing and sales infrastructure, carbon reduction measures and logistics.
Last year, Toshihiro Suzuki, Representative Director and President of Suzuki Motor Corporation (Japan) — the parent of MSIL — had stated that the company would invest ₹70,000 crore in the next five to six years in India to strengthen its operations.
To another question about E20 fuel compatibility, Takeuchi said, “I would like to assure that all of our current ongoing products are E20 compatible products. Actually, we have improved our compatibility to ethanol from the production year 2008. So, after 2008, all of our products are E20 compatible.”
On sustainability efforts in manufacturing, he said the company is taking many steps to achieve carbon neutral manufacturing, including increasing in-house solar capacity from 79.1 megawatt in FY25-26 to 211.3 megawatt by 2030-31, “which will cover almost 35 per cent of our total electricity requirements”.
He further said, ‘’The remaining portion we are going to buy green electricity mainly by solar and wind power for our plant operations.” The company will also put up biomass plants at its Manesar and Kharkhoda factories and also at the new plant at Sanand in Gujarat.
On asked by another shareholder about the company’s preparedness on new engines and advanced technology in the upcoming cars, he said most of MSIL’s work is based on new technology and market research capabilities.
“We have strengthened our processes and systems in the area of new product development and also market research capabilities…along with Suzuki Motor Japan we are working extensively on future-ready technologies in our vehicles. In addition, we are engaging with startups companies to explore new innovations and process technology,” he noted.
One of the shareholders also pointed out that MSIL still does not have a strong hold on premium SUVs like what Mahindra & Mahindra or Tata Motors have with products like Scorpio and Safari respectively.
Takeuchi in his response said, “We will introduce 10 new SUVs in next five years so as to improve our market share in SUV space also. So, both in small cars as well as SUVs portfolio, we are expanding further improve our market share in the Indian market.”