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India’s largest car manufacturer is setting up two new manufacturing plants in Gujarat to increase production capacity and to make way for newer models planned for launch as well as higher export from the Indian factories. With the sales of Maruti Suzuki cars on a rise and the production facility in Haryana reaching its saturation point, Maruti Suzuki will invest about Rs. 4000 crore for the new plant to meet production needs and further expansion of the company.

Suzuki closed up shop in America in November 2012 due to dismal sales, so the Japanese parent company has decided to concentrate on Asia for expansion and better sales. Maruti Suzuki has bought two pieces of land for the ambitious set up with a 480-acre land at Ughroz and Ukarade as well as a 700-acre plot at Mehsana reserved for them by the Gujarat Government. Due to overpricing of plots in Haryana in 2005 by the Government, Suzuki will acquire the former 480-acre plot directly from the land owners. The company will have a set up similar to Haryana, with 5 factories on two separate plots.

These plots in Gujarat are 100 kms from the state capital Ahmedabad and within 300 km radius of the Mundra port which will be used by the company for export operations. The new state of the art plants will have a production capacity of 2.5 lakh units in the initial phase and will be expanded according to the demand from the Indian as well as the export market. Suzuki has planned many new launches in India as well as international markets, and the production of these cars will be done jointly at the Haryana as well as the Gujarat factories.

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