Gujarat could be bigger home for Maruti by 2020
its small cars to this centre later, as part of its effort to make India its export hub. Apart from being an investor-friendly destination with good infrastructure, Gujarat has several public and privately-operated ports. Maruti already uses the Mundra port for its car exports.
In March, Maruti had subtly hinted that its hub would shift from Haryana to Gujarat when its officials had said that while Manesar will see addition of a third production line in September, 2013, capacity at the Gurgaon plant would be successively reduced as part of a de-congestion plan due to the heavy traffic in the area.
By around 2015-16, Gurgaon will make about 5 lakh cars a year, down from the present 7 lakh.
Analysts said Maruti could be favouring Gujarat due to recurring labour problems at its Manesar plant, which resulted in a revenue loss of Rs 6,000 crore. The violence at the Manesar facility on July 18 this year claimed the life of a senior HR official and injured 96 others, after which the company fired over 500 of its permanent employees. However, the company has vehemently denied any plans to significantly shift out of Haryana because of such reasons, often praising the police and state administration for swift handling of the issue.
FAST TRACK
* Ground-breaking in ’13; full capacity seen by 2020
* First plant with 2.5 lakh units to be on stream by ’16
* Investment by Maruti, vendors at R20,000 cr
* Capacity at 15 lakh units, more than in Haryana
