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Maruti to pump in $1.8 billion

NEW DELHI: Japanese auto major Suzuki Motor Co. on Monday unfolded its subsidiary Maruti Suzuki’s plan to invest $1.8 billion US dollars in R&D, marketing and capacity expansion as finalised and made public the top management rejig.

“We have expanded our production capacity at Manesar. Hereafter, Maruti Suzuki will have to invest in sales and research and development. Therefore, the focus will shift on R&D and marketing,” Suzuki Motor Co. Chairman Osamu Suzuki said while addressing a media meet here.

As many of the major international manufacturers are increasing their share in India, MSIL could not afford to be working on at the current pace, Mr. Suzuki said.

Asserting that there has to be a strong link between SMC and MSIL in terms of product pipeline and R&D and that two entities should be able to develop more and more products in India, he said overall Maruti Suzuki India (MSIL) will invest $1.7-1.8 billion, which would be equally distributed on setting up a R&D facility and marketing, and expanding the capacity of its Manesar plant where it manufactures new models like Swift and the SX4.

Since the site at Manesar would used now for further building capacity, he revealed, “We have already sought 500 acres of land from the Haryana government for setting up of the R&D facility.”

The R&D facility in India will be the second largest facility for SMC after Japan and it will be used to develop products not only for the India but also for Suzuki’s global markets.

This facility would be as good as their facility in Japan, he elaborated.

The top management rejig he announced would see its current Managing Director Jagdish Khattar to retire on December 18 and S. Nakanishi, the incumbent Joint Managing Director succeed him. R. C. Bhargava will take over as the Chairman.

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