Scouting land for Maruti Suzuki India Limited (MSIL)’s third manufacturing plant in the country, Suzuki Motor Corporation chairman Osamu Suzuki had a “cordial and positive” meeting with Gujarat chief minister Narendra Modi here on Thursday.
Having received an invitation by the Gujarat CM to set up a plant in the state, MSIL will now seek formal approval from the boards of both MSIL and Suzuki Motor Corporation (SMC) for the third plant, an announcement on which will be made by October-end.
In his first formal meeting with the CM, Suzuki was accompanied by MSIL chairman R C Bhargava and managing director Shinzo Nakanishi.
“I met the CM on Thursday formally for the first time. We had a discussion on setting up a plant here. Considering the discussion we had with the CM, we have to take formal approval from the boards of MSIL and SMC and only then shall we be able to decide on whether to apply land or not. The decision will be taken by October-end,” said Suzuki.
According to Bhargava, the timing will depend on market conditions in the near future. “The CM has extended full support for whatever plant we want to set up. The company needs to gather more information on the land and the risks associated.
We definitely need another plant. But whether it comes up in 2014, 2015, 2016 or 2017 depends on how the market behaves," said Bhargava.
MSIL would require 500 acres of land for its first manufacturing facility outside Haryana, with a capacity to produce a million cars a year.
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Additionally, the company would require 500 acres for a vendors' park.
At present, it has a total production capacity of 1.7 million units per annum from the Gurgaon and Manesar plants put together. The current production as well as sales volume is 1.2 million units per annum. "There are 18 auto manufacturers who have come to the Indian market and most of the companies are bigger than Suzuki Motor Corporation," said Suzuki.
Suzuki's interaction with the state government came merely days after French car maker PSA Peugeot Citroen announced its first car plant in India at Sanand.
In May, Bhargava and Nakanishi had met Modi to express intent to set up the company's new facility in Gujarat.