Maruti Suzuki plans to invest 40 billion rupees ($716 million) to build a new plant in India.
The new facility will be situated in the western Indian state of Gujarat and will produce 2 million units by 2015-2016. Maruti Suzuki has already signed an agreement with the Gujarat government, which allows the company to buy land and build the new facility. The company estimates the plant will need 2, 000 employees.
“As we take our first step in Gujarat, Maruti Suzuki is entering into a new phase of its business life. India has a bright future, wherein the auto industry is set to grow rapidly. Our plan for capacity expansion is to prepare for that growth even as the industry crosses over four million cars by 2015-16. Our new plant will take our combined capacity to two million units,” said Shinzo Nakanishi, managing director and chief executive officer, Maruti Suzuki.
The company already has two facilities in Manesar and Gurgaon that produce 1.4 million cars annually, and with this new plant production will reach 2 million units. Maruti, which is 54.2% owned by Suzuki Motor, reported a 5% decline in its monthly vehicles sales in May.