India’s largest car manufacturer Maruti Suzuki is expected to sign an agreement with the state of Gujarat regarding the proposed manufacturing facility at Mehsana on June 2, 2012. The new facility will be the company’s first plant outside Haryana and will be set up with an initial production capacity of 2,50,000 units. The capacity will be gradually increased according to the demand from the domestic market and exports.
According to a government official, the state is expected to allocate an area of 500 acres to the company for the setting up of the new facility. The company is aiming production of 20,00,000 cars annually in Gujarat by developing various facilities in the state in phases. In this manner, the automaker plans to shift its primary production center from Haryana to Gujarat.
The proposed agreement is a result of the willingness of the state government to make the state an auto hub by inviting various automobile manufacturers and auto parts manufacturers to set up camp in the state. The state already houses facilities of General Motors, Tata Motors, Ford Motors and Asia Motor Works.
