Maruti Suzuki India is trading higher by 3% at Rs 1,141, extending its about 4% rally in past two days after the country's largest car maker said it will invest Rs 4,000 crore to set up a new production facility in Gujarat by 2015-16.
“The company has on Saturday signed State Support Agreement (SSA) with the Government of Gujarat for purchase of land near Mehsana to set up an all new manufacturing facility", Maruti Suzuki India said in a filing.
“The overall capacity in the first phase will be 250,000 units. This new facility will take Maruti Suzuki’s combined manufacturing capacity to 2 million units by 2015-16,” it added.
Meanwhile, according to media reports the company has cut some production of its petrol cars and focusing on boosting output of diesel cars. The demand for petrol cars are comes down due to a sharp rise in fuel prices.
The stock opened at Rs 1,109 and hit a high of Rs 1,142 on the BSE. A combined 713,519 shares have changed hands on the counter so far on both the exchanges.