Maruti Suzuki’s Gujarat Facility To Begin Production In 2017

Published: Friday, June 6, 2014, 12:45 [IST]

The upcoming manufacturing facility in Gujarat that will be build using investment from Suzuki Motor Corp (SMC) will begin producing cars exclusively for Maruti Suzuki from 2017.

This statement was made by Maruti Suzuki India Ltd (MSIL) Chairman RC Bhargava in Ahmedabad on Wednesday, reports BL.

The company will start a roadshow this month to win the support of investors to let parent Suzuki Motor Corp own the proposed plant in Gujarat, another related PTI report states.

Also Read: Maruti Suzuki Ciaz To Be Launched Before Diwali

It was in January this year that SMC announced its plan to set up its own factory in Gujarat (it was earlier supposed to be set up by MSIL) and to begin production through a wholly owned subsidiary.

However, SMC's proposal to manufacturer and sell cars to MSIL at cost price did not go down well with investors, who approached SEBI, asking it to intervene.

MSIL has argued that it is in everyone's interest to let the parent company take up the job of manufacturing and selling the cars to its Indian subsidiary.

The roadshow will begin during the middle of this month and will continue till the middle of August. The goal of the programme would be to convince local and global investors about the benefits of letting SMC setup the $488 million facility before the investor voting process begins.

If indeed everything goes as per planned, the Gujarat facility will be the Japanese automaker's first ever fully owned car manufacturing facility in India. The plant would have an initial capacity of 1,00,000 units a year, catering only to Maruti Suzuki.

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