In a bid to raise the production capacity of its passenger cars for catering to the rising demands in the Indian auto market, Maruti Suzuki is intending to purchase a vast area of 600 acres for establishment of its greenfield manufacturing facility along with the development of a vendor park at Mehsana in Gujarat.
The increase in production capacity is not viable due to lack of infrastructure limitations owing to which the automaker will be utilizing the 600 acres land in Gujarat for set up of first phase of the plant. However, the plant at Gurgaon will continue assembling operations but in a lower scale.
Mr. M.M. Singh, Managing Executive Officer (Production), Maruti Suzuki India, said, "The Gujarat government will hand over 600 acres of land to Maruti following the agreement. The balance 600 acres will be privately acquired by us. The process is on. We are expecting to get hold of the land by June."
Maruti Suzuki will be commencing the construction of this new facility in the year 2013 so as to meet the deadline of making it operative by 2016. Also, the company will be purchasing another 600 acres land in the state for development of a vendor park.
Even at the Manesar facility, the car maker had established a second plant with a high production capacity of 2.5 lakhs units per annum while a third plant is planned to be set in 2013. The company is aiming to depreciate the quantum of production from its Gurgaon plant, which is planned to be converted to an engine-manufacturing hub so that production can be executed at the Manesar and Mehsana facility in future.
