Maruti to invest 1.3 billion dollars for its new plant

by khalid on 22/09/2011 · 2 comments

 India’s biggest car maker Maruti Suzuki will invest about 1.3 billion dollars (Rs 6300 crore) to set up its new plant. The place is yet to be finalised but according to Chairman RC Bhargava western Gujarat is being considered as a potential location.

The final decision on the location will be made by the end of October. Recently global auto makers like Ford Motor and PSA Peugeot Citroen has announced their investment plan in the business friendly state of Gujarat.

 Japan’s Suzuki Motor holds 54.2 percent in Maruti and is the largest car maker in India. They are facing tough competition from Hyundai Motors, a Korean company which is the 2nd largest Car maker in the domestic market. Maruti Suzuki has been in news for quite some time because of its ongoing strike in Manesar plant in Harayana. The strikes have hit the production of Maruti Swift model. The strikes have also raised concerns over the firm’s ability to maintain its sales growth. Recently Suzuki Motor Chairman & CEO, Osamu Suzuki came to Gujarat

During Osamu Suzuki visit he announced that Maruti will be investing 416 million dollars in a new plant to meet the growing car demand in India. Maruti has a larger market share in the middle class segment and cover nearly half of the Indian market share. In the Indian stock exchange the stock has underperformed from a long time. Presently the stock is trading at CMP of Rs 1124. The share price fell by 2.65 % in the BSE to close at rupees 1124.

“Bell the bull says: Maruti has the largest Market share in the Indian car Segment.”

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