Maruti Suzuki officials on Gujarat tour today to discuss next production facility

Gujarat could be beckoning Maruti Suzuki with the company dealing with continuous production loss as there labor union strikes much too often. This will be the company’s first move out of Haryana if the plan materializes. Chairman of Suzuki Motor Corp, Osamu Suzuki, Chairman of Maruti, RC Bhargava, MD of Maruti, S Nakanishi, and other officials will meet Gujarat CM Narendra Modi in Gandhinagar today.

The ongoing strike at the Maruti Manesar plant has had a negative impact on operations and sales of the new Maruti Suzuki Swift, and other cars. Workers have refused to sign a good conduct bond, and continue to strike.  Peugeot recently invested Rs. 4,000 crore in Sanand, and Ford Motor too has started work on their plant at Sanand. The first to take a plunge was Tata Motors when problems at Singur began while Tata was trying to begin full-fledged production of the Nano.

One can’t expect an agreement by end o day today, but this could surely result in another production plant in Gujarat, strengthening the state’s stance as a major Indian auto hub. As per a senior Industries Department official in the state, Maruti would be given 1,000 acres at Hansalpur in Ahmedabad. In close proximity to Mehsana district in northern Gujarat, the plot is along the Viramgam-Mehsana highway, and boasts of good connectivity with Pipavav, Kandla and Mundra ports. As per a previous agreement, Maruti will have a car terminal for exports at the Mundra port.

Of the 1,000 acres at Hansalpur in Ahmedabad, the Gujarat government owns 650 acres. Maruti would have the purchase the remaining 350 acres. The senior Industries Department official Gujarat said, “As most of the land is wasteland, there will be no problem in acquiring it.” RC Bhargava, Chairman of Maruti had this to say. “We are going to Gujarat on Thursday to work our future strategies for Maruti. We are looking at options to utilise capacities for our future growth and also meet the global export commitment of our parent Suzuki.”