Maruti Suzuki Ltd may start construction work on its Gujarat unit next year.

According to Mr M.M. Singh, Managing Executive Officer (Production), the company was “hopeful” of taking up construction work in the Gujarat unit work at its Manesar unit in Haryana is completed, most likely by next year.

The company is expected to sign the necessary agreements with the Gujarat Government by June to obtain 600 acres. Maruti has proposed to set up a greenfield unit in Gujarat's Mehsana district.

“We are also in talks to acquire another 600 acres on our own. Discussions are on in this regard. We hope to get details of the acquisitions by June,” Mr Singh told reporters on the sidelines of the launch of Ertiga, its multi-utility vehicle.

According to Mr Singh, the company will develop a vendor park on the proposed 1,200 acres in Gujarat.

Export facilities

Mr Singh added that the company intended to use its Gujarat unit as an export hub and was likely to manufacture those car models that are exported.

“Because of the proximity of the Gujarat unit to Mundra port we will save nearly Rs 4,000 per car,” he added. Currently, the company's compact car, A-Star, is exported to European nations.

New Diesel unit in Gurgaon

Meanwhile, the company will invest nearly Rs 1,700 crore to set up a diesel engine manufacturing unit in Gurgaon. Built in two phases, the plant will have the capacity to manufacture 3,00,000 units a year. It is expected to be operational by next year end, Mr Singh said.

abhishek.l@thehindu.co.in

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