India’s leading automaker, Maruti Suzuki has said that the new land purchased in Gujarat will be used for expansion and is not meant for replacing the Haryana plants.

Recent reports in the media had suggested that the company might be planning to move out of Haryana and set up base in Gujarat followings months of unrest in its plants in the north Indian state. The company clarified that its Board of Directors approved the purchase of land in Gujarat for future capacity additions.

The company said that the decision to expand in Gujarat was taken before the unrest began in Haryana and it has not link to the expansion plans. MSI said: "The Company’s plan to invest in Gujarat started much before the industrial unrest situation at Manesar."

It assessed that it chose to establish facility in Gujarat due to its close proximity to Mundra port and it was more favorable on logistics to reach markets in West and South India.

Maruti Suzuki has said that its investment plans in Haryana are still intact. The palns include installation of the 2.5 lakh capacity Assembly line in Manesar (Manesar C), a world class R&D Center and test course in Rohtak. The company is planning to invest Rs. 3,400 Crores on these plans in the state.