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Maruti Suzuki To Invest $1.3 billion In Gujarat
Maruti Suzuki's chairman RC Bhargava has revealed that the carmaker needed an investment of about $1.3 billion for a new car plant with a production capacity of one million units. He along with Suzuki motors chairman Osamu Suzuki had visited Gujarat earlier last month to hold talks with government officials.
Maruti Suzuki is seriously considering Gujarat as it has turned out to be an investment friendly state. Several other carmakers have also expressed their wish to set up their plants in Gujarat. Tata Motors and General Motors already have car plants here. Ford has already started construction of its new plant in Gujarat while French carmaker Peugeot Citroen has also signed an agreement with the state's government.
Maruti Suzuki is expected to make a final decision on its new plant in Gujarat in the end of October. The carmaker needs to start a new plant soon as it will struggle to meet demands and grow at expected levels with its two plants in Gurgaon and Manesar. It is also facing increased competition with Hyundai Motors.
Maruti Suzuki's sales growth for this year might be due to the current strike at the Manesar plant. Analysts say the carmaker's profitability could be severely hit as the swift built at Manesar is its most profitable car.
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