India’s largest car manufacturer Maruti Suzuki India has announced its plans to invest Rs 4,000 crore in its new upcoming facility in the state of Gujarat which is expected to be functional by 2015-16. The new facility will be spread in an area of 700 acres near Mehsana and will be established in different phases based on production capacity. The plant will be equipped to produce 2,50,000 units annually by the completion of the first phase.
In statement on Saturday June 2, 2012, the company stated that it has signed the State Support Agreement with the Gujarat government to initiate the purchase of land near Mehsana. The statement also talked about the company’s long term view for expansion of the manufacturing facilities in India and taking the total production capacity to 20,00,000 units annually with the commencement of full operation at the new plant combined with the production at Manesar which is expected to witness further expansion.
Apart from the setting up of a manufacturing plant by Maruti Suzuki, the component suppliers and vendors for the company are likely to invest a similar amount of money to set up their respective production plants in the region.