RC Bhargava, the chairman of Maruti Suzuki India has said that the company is planning to reduce production at its Gurgaon plant but has not plans to completely move out production from the location.

Bhargava clarified that the company is closing down one line out of the three assembly lines at the plant, a move that will reduce the installed capacity by 30% to five lakh cars. The plant now has an installed capacity to produce 7.2 lakh cars at the plant.

A media report had indicated that the company might be planning to stop production at its plant in Gurgaon. However, the chairman of the country’s largest automaker said that the repots are not true and the company will only start production at its proposed Gujarat plant when its existing facilities in Gurgaon and Manesar are fully utilized.

“What we did say was that out of the three assembly lines at Gurgaon, we would shut down one line by 2015, reducing the installed capacity to 5 lakh cars, as against 7.2 lakh at present. In the space which would become available we would install our new diesel engine plant with a capacity of 3 lakh engines and also make components,” Bhargava said.

The cut in production comes after complaints by residents of Gurgaon that the heavy movement of the trailers carrying cars and incoming material raises inconvenience.