Wednesday, May 16, 2012
By Shilpa Chopra
Maruti Suzuki India could cut down production in Gujarat!
India’s largest car maker, Maruti Suzuki is planning to cut down the production in the new hub of Indian auto industry Gujarat, as per latest media reports. Maruti has its manufacturing unit in Mehsana, Gujarat, where the firm was said to produce numerous cars. After the Manesar plant labour strike, Maruti was taken aback and started amplifying the Mehsana plant, but now the company is planning to slow down the production there substantially.
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The initial figure for Maruti was 1 million, which was planned to be manufactured every year from Gujarat unit, but now it might come down to just 10000 units per year. This massive chop down in production by the firm is being credited to the uneven economy, which dropped down the car sales considerably. Depending on the demand, the production at the Mehsana Maruti Plant might be amplified.
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As of now, if Maruti is taking it easy with the Gujarat manufacturing unit, the projected investment of Rs. 6000 crore could just be radically slashed. However, if the production is lowered, then Maruti would employ fewer workers. Besides, the subsidiary produces that are likely to supply parts to Mehsana Maruti factory will cut back their investments as well. In last couple of months, the investments by the auto industry have been tumbling down.
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At first, the French car maker, Peugeot, dropped down its huge investment of Rs. 4000 crore in Gujarat and is chalking out plans to manufacture its cars from GM India’s Halol unit, which also located in Gujarat. Even Tata Motors hasn’t been able to make use of its full production of 2.5 lakh units per annum for Tata Nano in Sanand. And now, India’s largest car maker scaling down its plans for Gujarat shows the diminishing interest of auto industry in Gujarat. Now, one will have to wait and see what will be the final official word by Maruti regarding this matter.