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Maruti Poised to Begin Building Gujarat Factory
Maruti Suzuki India Ltd. says it could start construction of a new 40 billion-rupee ($730 million) assembly plant in Gujarat, India, as early as next quarter, pending board approval next month.
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Maruti Suzuki India Ltd. says it could start construction of a new 40 billion-rupee ($730 million) assembly plant in Gujarat, India, as early as next quarter, pending board approval next month.
The facility is slated to open in late 2015 or early 2016 with initial annual capacity of 250,000 vehicles for local and export markets. Output could eventually be tripled, thus bringing Maruti's capacity in India to about 2.2 million vehicles.
Maruti bought an additional 600 acres adjacent to the new factory, leaving open the possibility of further expansion.
The new assembly plant will be the company's first outside the northern state of Haryana, where labor clashes have turned violent. Maruti says it won't move work from Haryana to the new facility.
The company unveiled plans for the Gujarat factory in December. It notes that the site's coastal location will cut transportation costs. The state is becoming an automotive center. General Motors and Tata have plants there, and Ford is building one.
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