India will be the new small car production hub for Suzuki Motor Corporation. Shifting the entire production operations of their small vehicles to Indian shores, is the latest decision taken by the Japanese car makers. It comes at a time when the appreciating Yen is causing severe constraint to company profitability, not to mention recent natural calamities such as earth quake and tsunamis.
This commencement of Indian production operations will come into effect once Maruti Suzuki India’s new plant, coming up in Gujarat is ready. Maruti is already manufacturing Suzuki cars for foreign markets, but once the new plant is ready, India will take over as the new export hub for Suzuki small cars.
The company’s Japanese plant will cater to domestic markets while global exports will take place from India. The plant in Gujarat is situated near Mehsana and site and location is conducive to enable effective export operations from the Mundra port.
Currently L&T is building a wall around the MSI Gujarat construction site. Rs.8,000 crores has been invested in the new plant which will have capacity to roll out 1.5 million vehicles by 2015-16 and will also possess a skill development center on its premises. Exports will be effected to Africa, Middle East and Europe from this plant.