Heavy investment: Maruti may double capacity at new plant

Gujarat plant will be the first for India’s biggest carmaker outside the northern state of Haryana.

NEW DELHI: Japanese-owned Maruti Suzuki may double capacity at its planned car plant in India’s Gujarat state, a report said, as it reviews strategy following deadly labour unrest at another major factory. The Gujarat plant – due to open 2015-16 – will be the first for India’s biggest carmaker outside the northern state of Haryana. Dow Jones Newswires, quoting an unnamed senior Gujarat state official, said  that initial capacity of the new plant could be as high as half a million cars per year – twice what Maruti originally envisioned. Maruti is investing $727 million to build the factory. Suzuki is on a week-long visit to India to take stock of the situation at Maruti, which is crucial to the Japanese firm’s fortunes.

Published in The Express Tribune, August 26^th, 2012.