Suzuki to invest $ 3.5 billion in India

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New Delhi, Oct 29: Country's largest car maker, Maruti Suzuki India Ltd, today said it will invest 200 billion Yen (1.75 billion dollars) in the production and engine facilities at Manesar and an additional 200 billion dollars in research and development and marketing.

''We will be investing 400 billion Yen (3.50 billion dollars) and look to expand the production in the Manesar facility which will be able to produce one million vehicles,'' Suzuki Motor Corporation (SMC) Chairman Osamu Suzuki told reporters here.

Mr Suzuki also outlined a strong outlook on the part of the company to strengthen its R&D where he said the company will be making substantial investment.

''We wanted to use the Manesar facility for R&D but have decided against it. The additional land in Manesar will be used to expand the production line up and we have already applied to the Haryana Government for an additional 500 acre land,'' said Mr Suzuki.

He added that it was necessary for the company to sell the one million vehicles it envisages to produce and for that the company will have to establish a system which can take care of such sales in the form of stock yard and showrooms.

''We will now focus on the need to invest in the stock yard. In Japan we have six stock yards but in India the distribution takes place from its sole manufacturing plant,'' said Mr Suzuki.

The Chairman added that in view of intense competition in the car market it has become imperative to establish a strong pipeline between SMC and Maruti.

In terms of investment India will become the second largest hub for Suzuki after Japan and the company looks to export its products from India to European markets, West Asia and neighbouring countries.


UNI

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