Maruti Suzuki, India's largest passenger car maker, will invest nearly $1.3 billion to lay the foundation stone of a new plant, most probably in Gujarat. The information was passed on by R.C. Bhargava, Chairman of Maruti Suzuki India Ltd.
Global automakers are making every effort to commence their business activities in Gujarat, owing to the business-friendly culture that surrounds the place. Ford Motor and PSA Peugeot Citroen have announced their plans to invest in the state.
"On one plant for a million capacity, which will be set up over a number of years, the investment will be close to $1.3 billion," R.C. Bhargava was quoted as saying.
He also added that the company is considering Gujarat as a consummate location to set up its plant, but a final decision will be made only by end-October.
Maruti, 54.2 per cent of which is owned by Japan's Suzuki Motor, has been confronting strong competition from the likes of South Korea's Hyundai Motors, the second-largest car maker in India, and even the local rivals.
Moreover, the production of its popular Swift model has bore the brunt of the ongoing unrest at the Manesar plant in northern Haryana, making the Maruti camp frantic regarding its sales growth.
