Maruti Suzuki India has confirmed about its plan to relocate its first plant out of Gurgaon where Maruti’s marvellous journey in Indian auto market started.
One of the reasons for the removal is complicated traffic. Haryana government officials and Maruti’s representatives had met to discuss a new area for the plant. The recommended site was near Manesar where the second plant is situated with settled vendor base.
Commenting on the relocation of the plant, MSI Chairman RC Bhargava said:
“Shifting from existing site (Gurgaon) is inevitable. There is a need to shift from there but when and how and in what manner it will happen, we cannot make any comment at this point.”
He also said that the relocation needs to be gradually conducted and cannot affect the plant’s production.
Maruti Suzuki's Gurgaon facility will be gradually relocated, which is inevitable
He refused to reveal anything about the timeline to remove the plant in Gurgaon. Currently, the Gurgaon plant is manufacturing a variety of Maruti popular models such as the Wagon R and the Alto with approximately 7 lakh vehicles produced each year.
Gurgaon is a dynamic city with a rapid development, which makes the plant stuck in the middle of the city. As a consequence, the trucks are having difficulty in carrying input materials and output products in and out of the factory.
In addition to Gurgaon, Maruti Suzuki India also has a plant in Haryana at Manesar. The total production capacity of the two manufacturing units is 15.5 lakh each year.
A new facility in Gujarat has also been established by Suzuki Motor Corp with three lines. The first one is in now in operation with a 2.5-lakh-unit production capacity; the second one will be empowered in the first half of 2019; the work on the third one is underway and will go into operation in two years’ time. An annual capacity of 3 million vehicles by 2020 is now the target of Maruti Suzuki by 2025.