Maruti Suzuki India Limited, the Indian subsidiary of the Japan based automaker, is currently going through a rough patch in production of its bestselling flagship small car segment models owing to the violence that fuelled at its Manesar facility in Haryana. After the labour unrest at this plant, it is anticipated that the company will be embarking upon the construction of a new plant, planned at Mandal taluka near Ahmedabad.
In a recent tour to Japan, Mr. Narendra Modi, Chief Minister of Gujarat had some deliberations with Mr. Osamu Suzuki, the Chairman & CEO, Suzuki Motor Corp for the business expansion in the state. As per Mr. Maheshwar Sahu, Principal Secretary (Industries) of Gujarat, member of delegation who accompanied Mr. Modi confirmed that Maruti Suzuki will commence the establishment operations of a car manufacturing plant in the state within the next three months.
The Gujarat government has already allocated two acreage of land to the country’s largest car maker extending 160 and 70 hectares. Maruti Suzuki has agreed to infuse an amount of Rs. 4000 crore, which the largest investment made by the company so far outside Haryana for establishment of this greenfield project near Becharaji, Mandal taluka by 2015-2016. Even the component vendors of the automakers are speculated to make an equivalent investment.
In the initial phase in 2015-16, the overall installed capacity of the new plant is estimated to be 2.5 lakh units and will be gradually ramped up. The company has showcased increased interest in the setting up of the plant in the country’s automotive hub.
