Suzuki Motor to invest 300 bn yen by 2010
The company's fourth assembly plant has an initial capacity of one lakh cars per annum, reports Deepak Joshi.india Updated: Feb 06, 2007 19:45 IST
Suzuki Motor Corporation's Chairman Osamu Suzuki said on Tuesday that his company plans to invest 300 bn yen (Rs 10,800 cr or $2.5 bn) in various company enterprises in cars and two-wheelers by 2010.
About a third of the Japanese company's investments are already in place.
"So far we have invested about 100 bn yen. Going forward we are investing an additional 200 billion yen up to 2010," Suzuki said while inaugurating Maruti Udyog Ltd's fourth car assembly plant, a diesel engine and transmission plant and Suzuki's two-wheeler plant at Manesar, not far from Maruti's main facilities in Gurgaon.
The Manesar plant will manufacture premium hatchback Swift initially and would later manufacture other models, including an export model expected to be launched in 2008-09.
Apart from making investments in three plants at Manesar, sizable investments would be made in the Maruti facilities in Gurgaon. The company is also drawing up its plans to be globally competitive in terms of quality and costs. The engine plant will manufacture transmissions for 1 million vehicles by 2008.
Suzuki rejected the charge that the Japanese automobile giant was not fully transferring technology to Maruti. "We are transferring technology 100 per cent to Maruti. Suzuki has a 54% stake in Maruti and there is nothing to hide. It is not a rival company."
"We plan to export 1.5 lakh units of cars to the European market. To meet the growing demand for cars globally, there is a need to improve the infrastructure,” he stated.
Maruti has already announced 250 bn yen-worth investments (Rs 9,000 cr) to raise capacities, upgrade and launch new models in next three-four years. Moreover, Suzuki said 20 bn yen (Rs 720 cr) are being invested in the two-wheeler venture.
The company's fourth assembly plant has an initial capacity of one lakh cars per annum. This will be scaled to 3 lakh units per year by 2010, with a projected investment of Rs 2,500 cr.
Email Deepak Joshi: firstname.lastname@example.org