Suzuki asks Maruti to boost small car R&D

02 September 2008

Mumbai: Japanese auto major Suzuki Motor Corporation wants its Indian subsidiary Maruti Suzuki to increase research and development (R&D) for small car engines to meet growing demands.

Suzuki Motor Corp chairman Osamu Suzuki has told the board of Maruti Suzuki India to strengthen R&D of small engines of up to 1,200 cc, Maruti chairman R C Bhargava told shareholders of the company at its annual general meeting.

Bhargava said Suzuki, which owns 54.2 per cent of Maruti, wanted to shift to bulk of its research and development on cars with engine capacity of 1200 cc or lower to India.

"Now 60-70 per cent of it is being developed in Japan. Suzuki wants to make 90 percent in India," he said without elaborating.

Maruti Suzuki India Ltd, India's top car maker, said it is focusing on fuel-efficient small cars, hybrids, electric and multi-fuel cars, but has no plans to launch an ultra-cheap small car.

Already Suzuki has announced its plans to make India an R&D hub and bring the level of product developments to that in Japan.