New Delhi, Oct 11: Country's biggest car maker Maruti Suzuki India Ltd, its parent Suzuki Motor Corp and Magneti Marelli have signed an agreement to set up a joint venture at Manesar in Gurgaon to produce electronic control units (ECUs) for diesel engines.
Magneti Marelli will contribute 51 per cent of the share capital of the new company, Suzuki will bring 30 per cent and Maruti 19 per cent, Maruti Udyog Ltd today said in a statement.
The initial investment is expected to be about Rs 75 crore, and the project will be funded through a mix of equity and debt, it said.
The production will commence by this year-end and reach a total of about 5,00,000 control units per year, when working at full stretch.
ECUs produced in Manesar will initially be used for Maruti Suzuki diesel cars and, later on, will also cater to other car manufacturers.
The JV will be a part of the suppliers' park spread over 100 acres, being set up by Maruti Suzuki at its campus at Manesar.