Japan’s Suzuki Motors has decided to set up a car factory in Gujarat (India) to capture a greater market share in India and to boost its exports to Europe, stated sources close to the matter.
Suzuki’s executives were recently in Gujarat to negotiate an agreement with the state government to purchase the land for setting up the factory. The company is expected to invest more than Rs. 4800 crore in the project. In the year ended March 2011, Maruti Suzuki sold 10,00,000 passenger cars in India. The company now hopes to boost its production with the setting up of the new plant to meet the growing demand in India.
Suzuki’s Indian affiliate, Maruti Suzuki has two plants in Northern India, which together roll out 10,00,000 vehicles each year. The Gujarat plant is expected to boost Suzuki’s exports as the plant will be located in close proximity to nation’s largest and best run port, Mundra. For the year ended March 2011, Suzuki exported 1,38,266 cars.
After Ford and Peugeot’s decision to set up a plant in Gujarat, Suzuki is the latest automobile player to choose Gujarat to set up its manufacturing plant in Gujarat.