Maruti Suzuki Gurgaon plant to move; congestion, traffic hassles blamed

Country's largest car maker Maruti Suzuki India (MSI) said Friday relocation of its first plant from Gurgaon to another site is "inevitable" due congestion and traffic hassles.

Representatives of the company had recently met Haryana government officials with a view to finding a new site to relocate the plant, preferably near Manesar where its second plant is located with established vendor base.

"Shifting from existing site (Gurgaon) is inevitable. There is a need to shift from there but when and how and in what manner it will happen, we cannot make any comment at this point," MSI Chairman RC Bhargava told PTI.

He declined to share a timeline for shifting the Gurgaon plant, where the company began its India journey in 1983 by rolling out its first model -- the iconic Maruti 800.

At present, the Gurgaon plant rolls out many of the company's popular models, including Alto and WagonR, with an estimated annual capacity of around 7 lakh units.

With the rapid development in Gurgaon, the company now finds its plant in the middle of a bustling city which has made it difficult for trucks carrying raw materials and finished products move in and out of the plant.

Local residents and authorities want congestion issues due to the plant to be addressed.

Besides Gurgaon, MSI has another manufacturing unit in Haryana at Manesar. Both Gurgaon and Manesar currently have a production capacity of 15.5 lakh units per annum.

Its parent Suzuki Motor Corp has also set up a facility in Gujarat. The first line with a capacity of 2.5 lakh units is in full production and the second one will be commissioned early next year.

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Work has also started on the third line and the expected commissioning is early 2020. MSI is targeting annual production of 3 million units by 2025.