New Delhi: The country’s largest carmaker, Maruti Suzuki India Ltd 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 Gurgaon plant)," Maruti Suzuki’s managing director and chief executive, Kenichi Ayukawa, told the Press Trust of India.
Mint was the first to report on Maruti Suzuki’s plans to shift out operations from Gurgaon, amid traffic congestion and complaints from residents and civic bodies. With the rapid development of the Delhi suburb, 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.
The Haryana government has offered new sites in Rohtak, Karnal, Faridabad and Dharuhera, among others, to Maruti Suzuki, the 14 December report had said.
The company has not set any timeline for shifting the plant and the focus right now is to locate a good land parcel, Ayukawa told PTI.
When asked if the company is looking to establish the new plant in Haryana itself, Ayukawa said: “First we have to discuss with the Haryana (government) people...because Haryana is our mother state...first we have to focus in that area...besides, we also have a lot of suppliers here (Haryana)...we have to manage that also." So far, Maruti Suzuki has received 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.
If Maruti Suzuki decides to build its new car plant in Haryana, it is estimated to require an additional investment of about ₹ 12,000 crore, the 14 December Mint report had said. These would include the cost of procuring land and building four assembly lines capable of producing one million cars a year.
It was at the Gurgaon plant that the then Maruti Udyog Ltd began its India journey in 1983 by rolling out its first model—the Maruti 800. At present, the plant rolls out many of the company’s popular models, including the Alto and Wagon R, with an estimated annual capacity of around 7 lakh cars.
Besides Gurgaon, Maruti Suzuki has another car plant 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 also started on the third line and the expected commissioning is early 2020. Maruti Suzuki is targeting annual production of 3 million units by 2025.