Security staff survey damage to a factory building caused by rioting workers at Maruti Suzuki India Ltd’s Manesar plant. (Photographer: Sanjit Das/Bloomberg)

Maruti Scouting For Land In Haryana Only To Shift Gurgaon Plant

The country's largest carmaker, Maruti Suzuki India is seeking a land parcel of around 700 acres in Haryana for shifting its Gurgaon plant, a top company official said.

The company considers Haryana as its "mother state" and will scout for another location in the state only, considering the presence of its supplier base.

Already, Manesar plant is spread across 700 acres so we are looking at a similar kind of land for shifting the Gurgaon plant
MSI Managing Director and CEO Kenichi Ayukawa

The company has not set any timeline for shifting the plant and the focus right now is to locate a good land parcel, he added.

When asked if the company is looking to establish the new plant in Haryana itself, Ayukawa said, "We have to discuss with the Haryana government because, Haryana is our mother state. As we have a lot of suppliers here, we have to focus more on this area.”He also stated that so far the company has received a positive response from the Haryana government over the issue.

When asked to comment on the planned investment in the new plant, Ayukawa said it would depend on the production capacity which is yet to be decided.

MSI has been looking to shift its plant from Gurgaon due to congestion and traffic hassles. With the rapid development in Gurgaon, the company now finds its plant in the middle of a bustling city which has made it difficult for trucks carrying raw materials and finished products move in and out of the plant.

It is at Gurgaon plant where the company began its India journey in 1983 by rolling out its first model -- the iconic Maruti 800. At present, the plant rolls out many of the company's popular models, including Alto and WagonR, with an estimated annual capacity of around 7 lakh units.

Besides Gurgaon, MSI has another manufacturing unit in Haryana at Manesar. Both Gurgaon and Manesar plants have a production capacity of 15.5 lakh units per annum. Its parent Suzuki Motor Corp has also set up a facility in Gujarat. The first line with a capacity of 2.5 lakh units is in full production and the second one will be commissioned early next year.

Work has been started on the third line and the expected commissioning is early 2020. MSI is targeting annual production of 3 million units by 2025.

Also read: Maruti Suzuki To Hike Prices From January

Also read: Q2 Results: Maruti Suzuki’s Profit Declines For The First Time In Four Years