AUTOMOTIVE ASSEMBLY MARKET ANALYSIS

Key Developments

• On January 10, 2024, Maruti Suzuki, the Indian subsidiary of Suzuki Motor Corporation, a Japan-based automaker, revealed plans to construct its second automotive manufacturing plant in Gujarat state. Maruti Suzuki, presently the leading car manufacturer in India, aims to increase its production capacity by 167% to manufacture 2 million vehicles annually, with an investment of 350 billion rupees ($4.2 billion).
• In December 2023, Renault Group, a automotive manufacturer unveiled a comprehensive transformation plan for its industrial base as part of the "Renaulution" strategic initiative, aiming to position the company as a next-generation automotive manufacturer. The plan targets a 30% reduction in production costs per vehicle for internal combustion vehicles and a 50% reduction for electric vehicles by 2027, along with shortening vehicle development times from three to two years.
• In November 2022, the Moskvich Automobile Plant in Russia, resumed production by initiating serial semi-knocked down assembly of the Moskvich 3 crossover with a gasoline engine
• In June 2021, the launch of a Toyota assembly plant in Ghana marked the second auto assembly plant in the country within a year, contributing to a reduction in imports of second-hand vehicles and bolstering export earnings. This assembly unit, with an annual production capacity of approximately 1,330 units, followed Volkswagen's launch of a 5,000-unit per year capacity assembly facility in August 2020.
• In October 2020, Mercedes-Benz announced plans to commence local assembly of its performance vehicle range AMG in India, starting with the AMG GLC 43 4MATIC Coupe at its plant in Chakan, Pune