Maruti Suzuki India, the biggest car manufacturing company of the country expects to complete land acquisition for a facility in Gujarat in a month; however a top company official said that they have no immediate plans for starting construction work there. Mr. R.C. Bhargava, Chairman at Maruti Suzuki India said that they will initiate work at Gujarat facility only when Manesar plant’s facility would be completely used. He also stated that land acquisition process is on and they hope it will be finished by the month of December 2011. They aren’t sure that they will be starting the work for quite a few years from now for at least 2 to 3 years. They will require the Gujarat’s facility only when Manesar plant is completely utilized, depending in the market situation.
At present, Maruti Suzuki India has two production plants at Manesar and Gurgaon, both in Haryana with combined capacity for producing 1.2 million cars in a year. As per the senior official of the government of Gujarat, the original land requirement of Maruti Suzuki India was designated to be 1000 acres. The carmaker had stated in the month of June 2011 that with its vendors, they would be investing Rs. 18,000 crores in Gujarat as it looks to develop and design almost 20 lakh cars in the state. Mr. Bhargava said that no one can produce capacity when market doesn’t need, but they produce capacity to market and make vehicles. So, if there is no demand for vehicles, they do not have to manufacture that capacity. Till November 2011, Maruti Suzuki India marketed around 6,81,200 cars down by 17 percent as compared to 2010.