Shares of Maruti Suzuki India Ltd are still reeling under selling pressure as concerns over the company's Gujarat plant continues to hound investors.

Maruti Suzuki stock slipped as much as 4.2 per cent in morning session trading on Wednesday. At 09:25 hrs, the stock was trading at Rs 1,686.95 a share, down 3.93 per cent. Suzuki Motor Co, which holds a majority stake in Maruti Suzuki India Ltd, announced in January this year that it would invest $488 million on a new plant in Gujarat and shelved an earlier plan for Maruti Suzuki India to establish the factory itself. Investors are concerned that the new plan would hurt the interest of Maruti Suzuki India's shareholders.

On 5th of March, a group of sixteen big fund managers wrote a letter to company's management, raising concerns that the plan would move manufacturing activity away from Maruti suzuki India and turn it into a shell company of its Japan-based parent firm. In the letter, the fund managers wrote, "The decision of the MSIL board is ill-conceived in its entirety and results in outsourcing of the core manufacturing activity that is fundamental and critical for MSIL.

This clearly is not in the best interest of MSIL and its shareholders." Under the plan proposed by Suzuki Motor Co, Maruti will purchase vehicles produced by Japanese manufacturer's upcoming Indian facility in Gujarat and sell them in the open market. Currently, Maruti Suzuki India manufactures and sells its own cars.