INDIA: Maruti board clears INR32.7 billion investment for new Suzuki JVs

By just-auto.com editorial team | 6 April 2005

Maruti Udyog's board has decided to invest INR32.7 billion in two new joint ventures with Suzuki Motor Corporation.

At a meeting in Hammamatsu, the board gave the nod to a new car plant and a new engine and transmission factory in Manesar, Haryana, near Delhi.

While the decision to form two new joint ventures with Suzuki had been announced some months earlier, the board of directors has now cleared the investment.

The passenger car manufacturing plant will be a joint venture called Maruti Suzuki Automobiles India Limited.

Maruti Udyog will hold 70% of the venture and Suzuki Motor will take the remaining 30%. The investment in this JV will be INR 15.24 billion. The plant will have an initial capacity of 100,000 cars a year, which will be scaled up to 250,000 as demand increases.

Maruti will also form another joint venture with Suzuki to make engines and transmissions. In addition to building car diesel engines, as decided earlier, this facility will also manufacture petrol engines and transmissions.

Plant capacity will be 100,000 diesel engines (this could be scaled up to 300,000), 20,000 petrol motors and 140,000 transmissions. The will be a joint venture company, Suzuki Powertrain India Limited (earlier called Suzuki Metal India Limited) in which Suzuki will take 51% and Maruti Udyog the remaining 49%.

Maruti will invest INR17.48 billion in the JV and the plant is expected to start production by the end of 2006.

Deepesh Rathore / Tilak Swarup