Suzuki to Invest US$215 Million on New Factory in Haryana

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Sept. 7 – Japanese automaker, Suzuki Motors, has announced plans to invest US$215 million for a new car factory in India by 2011 with a yearly capacity of 250,000 cars.

Suzuki wants to maintain its 50 percent market share in the face of rising competition from other automakers reports Reuters. The new Suzuki plant will be based on the current Manesar facility in the Haryana state located 50 kilometers from New Delhi.

Currently, Suzuki through its unit Maruti Suzuki India Limited, makes an estimated 1 million cars a year in the country. Automakers are betting big on the Indian market’s need  for small economic cars. There is already the brisk demand for Tata Motors’ affordable Nano with Toyota Motor Corp, General Motors, Ford Motor and Volkswagen scheduled to release their own versions of the economic cars next year.