4 June 2012
Maruti Suzuki India Ltd. signs an agreement with the
Gujarat state for land purchase
Plans to construct a new plant in the vicinity of
Suzuki Motor Corporation's subsidiary in India, Maruti
Suzuki India Ltd. has signed an agreement to purchase land
approximately 2.8 million m2 (700 acres) for the new
automobile plant, with the Gujarat state, located in
The land purchase is in line with the long-term management
strategy to strengthen the production capacity of Maruti
Suzuki to meet the growing automobile market in India. With
the purchase of this land, the new plant in Gujarat will
join the two existing plants in Gurgaon and Manesar, both
located in Haryana.
The location of the new plant is suited for Maruti Suzuki's
production and export hub, with approximately 100km away
from Ahmedabad, the largest city in Gujarat, and
approximately 300km away from the Mundra port, a major
exporting port in Gujarat.
Maruti Suzuki is in need of renewal of the aged building of
the Gurgaon plant, and the efficiency of production and
logistics is becoming less with many traffic jams happening
as the neighboring area of the plant rapidly urbanizes.
For this reason, Manesar plant is also strengthening its
production capacity. The third assembly line (Manesar C
line) is scheduled to start its operation in mid 2013 with
its production capacity of 250,000 units. With this line in
operation, the total annual production capacity of Maruti
Suzuki would be 900,000 units in Gurgaon plant and 850,000
units in Manesar plant, a total of 1.75 million units.
Maruti Suzuki plans to start the construction of the new
plant in Gujarat after the Manesar C line officially starts
its operation. The plant in Gujarat is planned to start its
operation from between 2015 and 2016. The initial
production capacity of the plant is expected to be 250,000
units with the total investment amount of approximately 60
billion yen (40 billion rupees). With this plant in
operation, the annual production capacity of the Maruti
Suzuki would be 2 million units.