Maruti Suzuki plans $1.3-bn investment for new plant

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SME News, Wednesday, Sep 21, 17:21:03 PM IST
NEW DELHI: Auto manufacturer Maruti Suzuki, has planned the investment of around $1.3 billion (approximately Rs 6,300 cr) for the development of a new plant which is expected to come up in Gujarat.

The global automakers are bullish on business in Gujarat as car makers such as Ford Motor and PSA Peugeot Citroen have also announced their investment plans in the state in the past few months.

Maruti has not yet finalised the location of its new plant and will take a final decision by October-end but is looking Gujarat as the potential location for the plant.

The company's 54.2 per cent shareholdings were held by Japan's Suzuki Motor and is currently facing stiff competition from domestic rivals and with the South Korea's Hyundai Motors.

Moreover, the production of its popular Swift model was also highly affected by the ongoing strike at its Manesar plant in northern Haryana state.

The standoff between the management of the company and the labours is raising doubts about the company's ability to maintain sales growth. The labour minister of Haryana Shiv Charan Lal Sharma has blamed the workers of the Maruti's Manesar plant for their adamant attitude. The minister expressed disappointment over the workers' attitude who are not agreeing to come back to their jobs unless the company brings back the suspended and dismissed workers.
 
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