India's Maruti to spend $716 million on new car plant

Sat Jun 2, 2012 9:58am EDT
 
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MUMBAI (Reuters) - India's top carmaker Maruti Suzuki (MRTI.NS: Quote) is to invest 40 billion rupees ($716 million) to set up a new manufacturing facility in the western Indian state of Gujarat, raising its total capacity to 2 million units by 2015-16.

The company has signed an agreement with the government of western Indian state of Gujarat to buy land to set up a new manufacturing facility, it said in a statement on Saturday.

Maruti Suzuki estimates it will generate employment for more than 2,000 people.

Maruti, 54.2 percent owned by Japan's Suzuki Motor Corp. (7269.T: Quote) on Friday, reported a 5 percent fall in its monthly vehicles sales in May.

($1=55.8900 Indian rupees)

(The story is corrected to show new facility will raise company's total capacity)

(Reporting by Indulal PM; Editing by Mike Nesbit)