Suzuki Motor plans 200 bln yen for Manesar plant

Manesar, Haryana, Feb 6 (UNI) Japanese auto-major Suzuki Motor Corporation (SMC) will invest 200 billion yen in the new car assembling plant inaugurated today in joint venture with country's largest car-maker Maruti.

''We have already invested 100 billion yen in plants run by Maruti Udyog Ltd and another 200 billion yen will be spent by 2010, taking total capacity to one million cars a year from the present 6,30,000 units,'' Mr Suzuki told reporters here.

The unit also consists of a diesel engine and transmission plant set up by Suzuki Powertrain India Ltd (SPIL) -- a 70:30 joint venture between Maruti and SMC.

The unit, set-up at an out-lay of Rs 2,500 crore, will start with an initial output of one lakh units and reach three lakh units by 2010.

The company plans to export two lakh cars by 2010 to Europe and other markets. MUL's new model, expected to be launched in 2008-09, will also be manufactured at the new plant.

SMC also hopes to export diesel engines to Suzuki units worldwide, starting with Hungary by the end of this year or early next year.

In addition, Suzuki Motorcycle India Pvt Ltd, a SMC subsidiary, plans to expand capacity of its two-wheeler facility in Gurgaon from the existing one lakh units to two lakh units per year. SMC will invest 20 billion yen in the two-wheeler manufacturing plant in the same period. It currently produces 125cc motorcycle brands -- Heat and Zeus.

''SMC has a majority stake in Maruti .... We are transferring technology to the extent of 100 per cent,'' Mr Suzuki said.

''The export target for the current year is pegged at Rs 35-40 crore,'' MUL Managing Director Jagdish Khattar said adding that SPIL would be manufacturing transmissions for one million vehicles by 2008.

UNI