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Government of India and Suzuki Motor Corporation, Japan (SMC) have deliberated here today in detail on the issues emanating from the recent announcements by SMC towards setting up of capacities for manufacturing diesel engines and for assembling additional 250,000 vehicles annually in India. A delegation from SMC discussed the matter with the officials in the Ministry of Heavy Industries and Public Enterprises, and explained the nature of the proposed investment, plans and prospects for developing an automotive complex with the full involvement of Maruti Udyog Ltd.,(MUL). Government of India welcomed the announcement of further investment by SMC in India and appreciated their initiative to make their preferred manufacturing base and outsourcing destination.
Both the sides expressed their full and abiding commitment to the covenants of agreements enshrined in the Revised Joint Venture Agreement (RJVA) signed between the two sides in May 2002. While Government supported the need for creation of additional automobile assembling capacity in the context of MUL’s more than 100% capacity utilization and also appreciated the need to set up facility for manufacturing diesel engine to meet emerging needs in this region., SMC agreed that such capacity creation would have to be in a manner which enhances value of MUL, redeems faith of public investors in the company and is also in furtherance of the objective enshrined in the RJVA.
Both the sides decided that a new automobile assembly plant for manufacture of high-end automobiles would be set up to meet growing demands of Maruti-Suzuki vehicles in India and abroad. The new corporate entity will share common vendors, marketing and servicing network and R&D infrastructure of MUL, thus, enhancing value of MUL.
Both the sides further agreed that to meet the emerging global requirements of diesel engines, SMC will set up, in equity participation with MUL, a new manufacturing facility for diesel engines.
SMC is also exploring the possibilities of further investment in India for setting up a new gearbox manufacturing facility to meet the requirements of Maruti-Suzuki cars in India.
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