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Suzuki’s new Gujarat plant will roll out Celerio first; YRA hatchback next

Snapshot: The new facility is expected to commence operations by end of 2016.

According to certain reports, the first car to roll out of Suzuki’s upcoming facility in Gujarat will be the newly launched Maruti Suzuki Celerio hatchback. The new facility is expected to commence production towards the end of 2016 or early 2017 and is rated to produce 2,25,000 units annually. Currently, the Celerio hatchback is built at Maruti’s plant in Manesar. Furthermore, Maruti Suzuki’s upcoming hatchback, which is internally known as the ‘YRA’ will also enter the production line at the plant in Gujarat, after initially being built at the facility in Manesar. 

The new Gujarat plant is spread across 1,190 acres of land and has attracted an investment of close to Rs 3,000 crores by parent company Suzuki. Located just 75 km away from Sanand, the new plant will contract manufacture cars for Maruti. This way, Maruti will not have to worry about issues such as component sourcing, logistics or even labour agitation. 

While this announcement was received with a mixed response, in the recent days, Maruti’s institutional shareholders, comprising seven mutual fund houses which together hold a 3.93 percent stake in the company have raised a red flag citing that this move is “neither fair nor in the interest of shareholders”.

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