Maruti Suzuki to launch A-Star in October, ramp up R&D capabilities despite dip in sales

Bhargava's remarks come close on the heels of Suzuki Motor Corp. chairman Osamu Suzuki directing his Indian counterpart unit to ramp up MSIL's R&D capabilities for small car as it intends to use the growing Indian automobile market as a small car hub.

"We target to increase the development work on the small engines (of upto 1200 cc) to 90 percent in India and the rest in Suzuki, Japan," Bhargava said, adding, "It is important that Maruti develops these engines in India with help from Japan." Presently, MSIL contributes to around 30 percent to the small engine development work.

"Quality and productivity have improved manifold in Maruti Suzuki in the last few years. Let us now channelize it to the next level, where we become the exclusive base to manufacture small cars for Europe," Maruti Suzuki managing director S. Nakanishi said.

According to I.V. Rao, chief general manager (engineering), MSIL, the company is planning to increase its number of engineers from an existing strength of around 580 to 1000 by 2010. In addition, MSIL will set up a new R&D center and a test track at par with the facility at Suzuki, Japan, Rao said.

Meanwhile, Suzuki Motor Corp would focus on developing cars that are fuel efficient and conforms with international emission norms. "The future belongs to cars that are fuel efficient and low on CO2 emission. SMC would work on developing hybrid, electrical, multi-fuel engines that help increase efficiency and enhance environment protection," Bhargava said.

According to a company statement, MSIL has set aside Rs.9000 crore as capex and would invest the same in Indian operations by 2010. This includes modernizing and expanding its car production plant and commissioning a new engine series plant in Gurgaon, and setting up a dedicated car terminal at Mundra port.