File photo:Osamu Suzuki visits Narendra Modi

New Delhi, 29 October, 2011

Maruti Suzuki’s board meeting today approved a new manufacturing facility in Gujarat and purchase of land in Mehsana district.

The board “granted approval to purchase land in district Mehsana, Gujarat, for future expansion of manufacturing facilities. This purchase would be subject to final negotiations on price and all legal formalities being completed”, the statement said.

Gujarat government is said to have earmarked 500 acres of land in Mehsana District, Gujarat, for the project.

Though officially not confirmed, Maruti along with vendors could invest up to Re 18,000 crore in Gujarat as it looks to produce around 2 million or 20 lakh units in the long run. Maruti Suzuki India is looking at a phased manner of starting car production in the state. It is said that Maruti proposes to invest around Rs. 4,000 crore in the first phase of the plant.

Modi says it’s a new year gift

It’s Gujarat’s new year & this is Maruti’s gift to Gujarat on this occasion:Tweeted Narendra Modi after Maruti’s board meeting decision to enter Gujarat in Saturday afternoon.

As per local sources:

-Maruti exports around 1.38 lakh cars to Europe and Africa every year. Of these over one lakh cars are exported from a special export unit at Mundra Port. Currently, all Maruti cars are manufactured in Haryana and transported by road to Mundra Port – the transportation cost per car comes up to Rs 25,000. With this new manufacturing facility in Mehsana area, Maruti is expected to save Rs 185 crore in transportation costs alone.

-Mehsana is the closest (approx 40km away) city from Maruti’s proposed location, and it is due to be an investment region in the later stages of the DMIC. The site is located at 110 km from Ahmedabad. The plant site is 275 kms from Mundra port and is well-connected to its Gurgaon headquarters by road.

-Maruti’s possible location near Mehsana is on the way between Sanand and the Ports of Kutch.

-The facility is likely to generate more than 1.50 lakh jobs.

Timeline
Maruti Suzuki’s Gujarat decision to be out this Saturday

Osamu Suzuki meets Modi:Gujarat decision in October board meet

Maruti is coming:Osamu Suzuki to meet Narendra Modi

Narendra Modi’s Gujarat re-writes story of Indian Auto Industry

Gujarat on way to become a new automobile industry hub of the region

Maruti says it again that Gujarat is a preferred location for expansion

Maruti Suzuki India’s MD to meet Narendra Modi

Modi wants Maruti Suzuki car plant in Gujarat