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Maruti Suzuki will be opening up a new manufacturing plant in Gujarat, which is set to be fully functional by 2016. The recent strike and lockout at the company’s Manesar plant has made Maruti Suzuki sit up and take notice. Now India’s largest car maker is planning to double the capacity at its upcoming plant, to ensure waiting periods would only be a thing of the past. The Gujarat plant could churn out as many as 5 lakh cars a year and would see an investment of Rs. 4000 crore.

The increase in capacity at Gujarat has multiple benefits for Maruti Suzuki. Firstly it will reduce the burden on the existing plants and any sort of stoppage in production would not lead to heavy losses. Secondly and most importantly, India accounts for half of Suzuki’s total production. Thus the Gujarat plant could serve in manufacturing cars for the export markets. With a port being nearby, it becomes easy for Maruti Suzuki to export vehicles.

Suzuki will continue to invest heavily in India. The company is investing Rs. 2600 crore to set up a diesel engine plant in Haryana. These funds will also be utilized in capacity expansion and boosting R&D activities. There have been rumors about Maruti Suzuki withdrawing from Manesar, however the company does not plan to shut down any of its current plants. Neither does the company plan to reduce the number of cars being produced at Manesar or Gurgaon, even after the Gujarat plant is operational.

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