Maruti in search of land in 'mother-state' Haryana to shift Gurgaon plant

The country's largest carmaker Maruti Suzuki India (MSI) is seeking a land parcel of around 700 acres in Haryana for shifting its Gurgaon plant, a top company official said.

The company considers Haryana as its "mother state" and will scout for another location in the state only, considering the presence of its supplier base.

"Already, Manesar plant is spread across 700 acres so we are looking at a similar kind of land (for shifting Gurgaon plant)," MSI Managing Director and CEO Kenichi Ayukawa told PTI.

The company has not set any timeline for shifting the plant and the focus right now is to locate a good land parcel, he added.

When asked if the company is looking to establish the new plant in Haryana itself, Ayukawa said: "First we have to discuss with the Haryana (government) people ...because Haryana is our mother state...first we have to focus in that area ... besides, we also have a lot of suppliers here (Haryana) ... we have to manage that also."

He added that so far the company has received a positive response from the Haryana government over the issue.

When asked to comment on the planned investment in the new plant, Ayukawa said it would depend on the production capacity which is yet to be decided.

MSI has been looking to shift its plant from Gurgaon due to congestion and traffic hassles. With the rapid development in Gurgaon, the company now finds its plant in the middle of a bustling city which has made it difficult for trucks carrying raw materials and finished products move in and out of the plant.

It is at Gurgaon plant where the company began its India journey in 1983 by rolling out its first model -- the iconic Maruti 800.

At present, the plant rolls out many of the company's popular models, including Alto and WagonR, with an estimated annual capacity of around 700,000 units.

Besides Gurgaon, MSI has another manufacturing unit in Haryana at Manesar. Both Gurgaon and Manesar plants have a production capacity of 1.5 million units per annum.

Its parent Suzuki Motor Corp has also set up a facility in Gujarat. The first line with a capacity of 250,000 units is in full production and the second one will be commissioned early next year.

Work has also started on the third line and the expected commissioning is early 2020. MSI is targeting annual production of 3 million units by 2025.