Auto giant Maruti Suzuki is planning to pump in up to Rs 18,000 crore for a new factory premises in Haryana. The company is pumping in money in what is touted to be the largest single-location automobile investment in the country. The new factory unit will have a peak capacity of 10 lakh units, said Maruti Suzuki Chairman RC Bhargava.
“We have a plan to invest Rs 17,000-18,000 crore. The total capacity that we are planning is between 7.5 lakh and 10 lakh cars per annum. This is the scale that we are looking at,” said Bhargava to Times of India, further adding that they would like to move to the new location quickly but would need to solve a series of issues first.
The greenfield location, likely to be spread over 700-1,000 acres, would serve as a replacement of the old -- and the first -- factory in Gurugram. However, the company will have to first address the state’s new mandate that states that 75 per cent of the jobs will be reserved for locals in business and factory establishments.
Bhargava said that the initial delay in the plans to establish the factory was due to the outbreak of coronavirus. He said that the company is talking to the state government to work out a solution that can make both parties happy.
Maruti Suzuki is planning to move to the new plant due to space constraints. The factory is spread across 300 acres.
Many other states have also approached Maruti for the large investment. However, the company, so far, seems to be keen on Haryana.
Also read: Maruti Suzuki hikes price for Swift, all CNG variants Also read: Maruti not shifting jobs, investment from Haryana to Gujarat: Chairman RC Bhargava