Maruti Suzuki likely to invest 1.3 billion dollars on a new plant

India’s largest car manufacturer, Maruti Suzuki, would make an investment of 1.3 billion dollars in order to build a new facility probably in Western Gujarat. This announcement was made by the company’s chairman, R.C. Bhargava.

It’s pretty much evident now that global manufacturers are eyeing Gujarat for their investments to set up new plants with most recently Peugeot Citroen and Ford Motors making their presence felt in the State along with Tata Motors who’d arrived at an earlier date.

Bhargava told Maruti would be looking at a single plant for a capacity to produce 1 million units. The plant would be set up over time with an investment close to 1.3 billion dollars.

Maruti Suzuki likely to invest 1.3 billion dollars on a new plantBhargava told Maruti was eyeing Western Gujarat as the probable for plant’s location, but cited a final decision on this matter would only be made at the end of October 2011.

54.2% of Maruti is owned by Suzuki Motors, Japan. Maruti Suzuki currently is facing stiff competition from Hyundai Motors, the South Korean car makers that are the 2nd biggest car manufacturers.

Maruti Suzuki’s current situation does not seem very favourable for the growth of its popular Swift. About 80,000 customers have already booked the Swift with a delay from Maruti’s side for delivery and customers having to endure long wait periods for the car. Furthermore, the Swift is being manufactured at Maruti’s troubled Manesar plant in Haryana. These prevailing circumstances do raise doubts about Maruti’s growth in the market.

Suzuki Motors has a major hold of shares in Maruti. Suzuki’s CEO and chairman, Osamu Suzuki, did visit Gujarat sometime this month.

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