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Maruti May Hike Capacity of Future Gujarat Plant

Maruti Suzuki India Ltd. is considering doubling the initial capacity of the assembly plant currently under construction in Mehsana in Gujarat state to 500,000 vehicles per year, according to Dow Jones Newswires.

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Maruti Suzuki India Ltd. is considering doubling the initial capacity of the assembly plant currently under construction in Mehsana in Gujarat state to 500,000 vehicles per year, according to Dow Jones Newswires.

The 40 billion-rupee ($725 million) factory is scheduled to open in the fiscal year ending in March 2016.

The news service cites an unidentified government official who says Gujarat Chief Minister Narendra Modi met with executives at Maruti parent Suzuki Motor Corp. during a trip to Japan last month. Suzuki Chairman Osamu Suzuki's current visit to India included a meeting with Modi late last week.

The Dow Jones source says no agreement has been reached.

The Mehsana assembly facility will be Maruti's first outside Haryana state, where walkouts and labor violence have disrupted output at the company's plant in Manesar for more than a year.

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