Maruti Suzuki may open third plant in South India

India's largest car manufacturer, Maruti Suzuki may open its third plant in South India, a business daily reported. 

The report quoted RC Bhargava, Chairman, Maruti Suzuki as saying, "If the company plans to further expand beyond the current capacity then South is a logical destination to set up a plant."

"I can’t see where a third site would be other than in the South. The plant will not be only near to the market but also help in exports",he added. 

Southern Region has been one of the preferred destinations of major automakers. While Tamil Nadu which is home to many companies like Hyundai Motor India, Renault-Nissan, Ford, BMW, and TVS. 

On another hand, Andhra Pradesh has lately attracted automaker by offering rebates on taxes and incentives.

In the recent past, global carmaker like Kia Motors India has started setting up its facility while the world's largest motorcycle manufacturer Hero Motor Corp is also building its eighth plant. 

With an aim to manufacture 30 lakh vehicles by 2030, Maruti Suzuki current capacity stands at 18 lakh units per annum. 

Out of which 15.5 lakh units or of Haryana (Manesar and Gurugram) plants and the rest 2.5 lakh is of Gujarat plant which will be further expanded to 7.5 lakh units per annum by 2020. 

Meanwhile, the company is also scouting new land in Haryana to shift it Gurugram facility because of traffic congestion.

The Haryana government has even offered as many as seven locations to Maruti Suzuki to shift its Gurugram plant which manufacturers top models like Wagon R and Swift. 

The government has offered new sites in Rohtak, Karnal, Faridabad, and Dharuhera.

The carmaker sold 13.08 lakh cars posting a growth of 7.4 percent between April and December when compared to 12.20 lakh units in April-December 2017.