Auto Expansion: Maruti to set up new $333m diesel plant
The plant, to be built in stages, will have a total production capacity of 300,000 engines, Bhargava says.
NEW DELHI:
India’s biggest carmaker, Maruti Suzuki India Limited, announced on Saturday it will spend $333 million to build a new diesel-engine plant to meet burgeoning demand for lower fuel-cost vehicles. The plant will be built in Gurgaon, a satellite city of the Indian capital New Delhi, and start up by the middle of 2013, Maruti chairman RC Bhargava told reporters. “This will be a brand new unit and will be owned by the company,” said Bhargava. The plant, to be built in stages, will have a total production capacity of 300,000 engines, Bhargava said. “We are going to invest INR17 billion ($333 million) to set up the diesel plant, which will be constructed inside our Gurgaon manufacturing facility,” he said. Demand for diesel vehicles has surged in India as the fuel is subsidised by the government and costs far less than gasoline.
Published in The Express Tribune, March 25th, 2012.
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