Maruti Suzuki zeroes in on Narendra Modi’s home district of Mehsana, Gujarat for new plant!

Putting the labour woes at its Manesar unit behind it, the country’s largest car maker, Maruti Suzuki has got approval from its board for setting up a new plant at Mehsana district in Gujarat. While Sanand had been projected as the location for the latest Maruti Suzuki plant, it seems that Gujarat chief minister Narendra Modi’s home district Mehsana has found favor with the Maruti board.

Though the Maruti Suzuki board has approved Maruti’s expansion plan in Gujarat, legal formalities needs to be completed before the land purchase for the manufacturing unit can go through. Maruti Suzuki will sink in a massive INR 12,000 Crore or over 2 Billion USD into this facility over two phases.

At full capacity, this facility will be able to produce twenty lakhcars every year, of which a chunk of cars could also be earmarked for the export market as Gujarat’s proximity to major ports makes it an ideal location for exporting cars. Another major investment is scheduled to happen in Mehsana, Gujarat as Maruti Suzuki vendors are also expected to follow Maruti into Mehsana, to support the manufacturing plant.

The estimated investment by Maruti Suzuki vendors is expected to be another INR 6,000 Crore. Both these investments together form almost INR 18,000 Crore, which is over USD 3 Billion, making Gujarat one of the biggest investment destination in India for he automotive industry.

The Maruti Suzuki plant and the associated vendor plants at Mehsana, Gujarat are also expected to generate big employment options for the locals. Over the past  few months or so, three big automakers, Ford, Maruti and Peugeot have chosen Gujarat for setting up their new production units with big ticket investments.

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