Maruti Suzuki plans to expand its passenger vehicle production capacity at Manesar in Haryana by around two lakh units over the next two years.

Currently, the Manesar plant produces the company's new models like the Swift, A Star and the Ritz, and has a capacity of around three lakh units.

According to sources, the cost of setting up a one lakh vehicle production capacity is expected to be around Rs 1,500 crore.

The purpose of expanding the Manesar vehicle production facility comes following the company’s decision to stop production of cars at plant 1 located at its Gurgaon production facility.

Plant 1 in Gurgaon has an annual capacity of around 1.6 lakh vehicles. There are three plants located inside its Gurgaon facility that produce older Maruti models like the Maruti 800, Wagon R, Omni, and the Versa, and one engine manufacturing facility that churns out the K series engine. Total vehicle production capacity at Gurgaon stands around seven lakh units per annum.

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