Appx 100 new Japanese Cos. to enter India as OEM suppliers for Maruti Suzuki’s next car plant in Haryana: Kenichi Ayukawa

Almost stagnant for the last three years at 1455, the number of Japanese companies is likely to grow as Maruti Suzuki plans to invite new Japanese auto components manufacturing companies for its third plant coming up in Kharkhoda in Haryana.

Sanjeev K Ahuja On May 19, 2022

NEW DELHI: India’s largest carmaker Maruti Suzuki’s new plant coming up in Khakhoda in Haryana would attract about 100 new automotive components manufacturing companies from Japan to support it and strengthen its supply chain.

Kenichi Ayukawa, Executive Vice Chairman, Maruti Suzuki India Limited (MSIL) said this on Thursday when the company signed an agreement with the Haryana government for the allotment of 800 acers of land for company’s new plant in Kharkhoda (Sonepat) where it is likely to make an investment of Rs. 18,000 crores. The plant is projected to be commissioned by 2025 to starting producing 2.5 lakhs vehicles per annum.

On this occasion, Suzuki Motorcycle India Private Limited also has purchased 100 acres of land to set up its new plant here.

“As we are expanding our business in India we are expecting new entry of Japanese companies here. As regards the number it depends on the type of technology, industry etc, but we expect about 100-200 companies as OEM suppliers for our new plant to come up in the region. Of these, the number of new Japanese companies coming here in this segment should be around 100,” Kenichi Ayukawa said while replying to a query by Asian Community News Network.

MSIL has a more than 420 vendor base to cater to its two plants, one in Gurugram and another in Manesar.

However, the evolving technological requirements and other parameters such as environmental concerns would require MSIL to call new Japanese OEM or component suppliers from Japan to support its third plant in Haryana. India has declared to cut its emissions to net zero by 2070 to conform to the goal of the COP26 summit that requires countries to commit to reach that target by 2050.

While referring to Prime Minister Narendra Modi’s pledge to achieve net zero target by 2070 at the Glasgow summit, the MSIL’s Executive Vice Chairman told Asian Community News Network that the developing technological requirements and environmental concerns would require the MSIL to invite new Japanese companies to India to set up their manufacturing facilities here.

Most of these companies would be micro, small, and medium enterprises (MSMEs).

However, this development would ensure that the number of Japanese companies that has been stagnant at 1455 in India for the last three years would go up.

As per the updated list released by the Embassy and the Consulates General of Japan and Japan External Trade Organisation (JETRO) in India, the total number of Japanese companies registered in India till October 2020 has been recorded at 1,455, as compared to 1,454 in 2019. The number was 1441 in the year 2018.

Therefore, the increase in the total number of registrations of Japanese companies from 2019 to 2020 was recorded at one only. The year 2020 was COVID-19 pandemic-hit year that witnessed stalled business activity world-over including India.

Present on the occasion, the Haryana chief minister Manohar Lal Khattar said that apart from handing over 800 acres of land to Maruti Suzuki India Limited and 100 acres to Suzuki Motorcycle India Private Limited, as many as 1000 plots have also been allotted to small industrial units in IMT being developed on 3200 acres in Kharkhoda, Sonipat.