The Hindu Business Line : Suzuki Motor Corp to use India as export hub

Mr Osamu Suzuki, Chairman and CEO of SMC, said on Wednesday that the company would use its subsidiary in India, Maruti Udyog Ltd, to manufacture newer car models with the aim of exporting them to other markets.

"We are keen on manufacturing car models in India and exporting them to other markets. We will be looking to commence manufacturing of new models at Maruti for this purpose," Mr Suzuki said on the sidelines of the India-Japan Business Summit being held in Tokyo and on the eve of World Economic Forum's East Asia Summit. He said SMC had "no intention to up its stake beyond the present 54 per cent in Maruti".

Bullish on venture

SMC is also bullish on its diesel engine venture at its plant under construction in Manesar and hopes to scale up the capacity from the proposed 1,00,000 units in the first phase to up to 3,00,000 units over a period of time, Mr Suzuki said.

Responding to a query, Mr Suzuki clarified that the company has no plans to phase out its entry-level Maruti 800 model, which he said would continue to cater to the first-time car buyers.

Tie-up with Nissan

On the new SMC-Nissan Motors tie-up, Mr Suzuki refused to divulge details saying that the fine print was still being worked upon. He, however, said the deal would benefit SMC by giving the company a huge surge in cumulative volumes in categories other than the compact car segment. "Unless volumes go up, rising costs cannot be justified," he said.

SMC had, earlier this month, announced a manufacturing collaboration with Nissan Motor Co and said they will begin joint production in India. Under the agreement, Nissan would utilise Maruti's production facilities to make a compact car for the Indian market.