Maruti Suzuki India Pvt. Ltd. plans to start building a 40-billion-rupee ($727 million) manufacturing plant next quarter that will allow the auto maker save on logistics costs for exporting vehicles.
The Project Report will be presented at their Board meeting in April.
The plant will be the third for India’s largest car maker by sales and its first outside the northern state of Haryana, where labor agitation affected production at a factory for most of last year.
Maruti acquired 700 acres of land for the plant from the Gujarat government and the new plant is expected to start production in late 2015 or early 2016 with an initial capacity of 250,000 vehicles a year. The new plant in Gujarat would be used also to manufacture cars for the local market.
Maruti exports cars to more than 125 countries in Europe, Asia, Latin America, Africa and Oceania using a car-terminal facility at the Mundra port in Gujarat. It exported 108,341 cars in the first 11 months of the current fiscal year that began April 1. The proposed manufacturing facility near Mehsana town is about 300 kilometers away from the port at Mundra.
Gujarat is fast emerging as an auto hub and moving towards becoming Global Automotive Manufacturing Hub.
– Kidsfreesouls News Desk
