[tsk1979]

Recent years have seen lot of labor troubles of haryana. So maruti could be trying to shift from "all eggs in one basket".
Maruti has the sales volume to justify two different plants.

[djpeesh]

I still think Maruti is fishing for cheap land from Haryana, the government of which, will clearly be rattled enough to match the sops that Gujarat is planning to give.

As an aside, apparently after all this expansion, by about 2015/6 Maruti will have a capacity of about 3.5 million units a year. Is there enough demand to justify such capacity? I don't know. I think they're going overboard a little too early... just my two cents

[moralfibre]

It always helps for a manufacturer like Maruti Suzuki, Hyundai, Tata, M&M etc to have a plant close to a Shipping dock to reduce transport costs incurred for their export lots. I was told the idea of having a Nano plant in a state with a major port was to keep costs low for export oriented models. Seems MSIL has realized the same and is working around it. Remember, diesel and petrol prices are always on the rise.

[Chalu]

It makes Business sense for having a multiple manufacturing facilities for No 1 player in the Indian market. Best example would be Ericsson mobile when their plant went kaput and they lost the market share completely to Nokia.

[troublemaker]

Simply looking at the Tata Nano plant success story, I think, any major auto player would be tempted to come to Gujarat. Also, the new player can take advantage of the vendors supplying Tata.

Plus the port proximity and the positive government approach and all that.

[Digitonsam]

TWEET FROM"@hormazdsorabjee: Ford's second plant in India to come up in Gujarat. C-platform cars or spill over of B-platform models could be made there"

[issigonis]

>>>

Please note that the original choice of Haryana/Gurgaon way back in the 1980s was foisted on Suzuki. Subsequently Maruti-Suzuki grew and grew. Sometime back there were some talks of Maruti being pressurised to set up another plant in another state, but Maruti managed to wriggle out of it as the central government in its rare bouts of wisdom decided to adopt an arms' length approach to this jewel of the public sector organisation.

Now that Suzuki is in the private sector, it will expand into other states if it makes economic sense (capex, cash flows, break even, profitability et.al). Gujarat is a pragmatic place for business and that is one reason many automakers are thinking of setting up plants/warehouses there.

Regards, drive safe

[PCS]

Maruti to finalize plant tomorrow in gujarat. Key highlights

- Chief of Suzuki to meet Narendra Modi

- 1000 acres

- Upto 18000 cr investment in phased manner

- to roll out 5 Mn units by 2015


Hats Off to Modi !!!


Osamo Suzuki to meet Narendra Modi tomorw, may finalise MSI plant in Gujarat - The Economic Times

[ashis89]

Maruti is having a harrowing time at Haryana plant due to labour unrest. There is a large pending order list for its NSS(90000+ orders) and its plant is not operating at optimum capacity,there are QC issues leading to heavy losses.
The above problems have lead MSIL to look at Gujarat as the location for its new plant.

Gujarat is being rightly called the Detroit of India.

[aryasanyal]

Maruti looks more or less finalized on Gujarat -

Suzuki set to meet Modi to finalise Maruti plant - Rediff.com Business