The Hindu Business Line : Maruti looking for Indian gas conversion kit makers

Maruti Udyog Ltd is in talks with manufacturers of gas conversion kits to see if these kits can be made in India, according to its Managing Director, Mr Jagdish Khattar.

Answering a question on whether Maruti would consider introducing LPG (liquefied petroleum gas) kits in its other models too, Mr Khattar said the company was importing the gas conversion kits from the US and Poland. For it to introduce LPG facility in other models, the kits would need to be manufactured locally to make it viable.

Maruti, he said, was holding discussions with some Indian companies to see if they could manufacture the kits locally. This would take time as it involved investment of at least Rs 50 crore and a technological tie-up, or possibly a joint venture agreement, with foreign companies that specialised in making gas conversion kits.

Mr Khattar was addressing a press conference to launch the new-look WagonR and the WagonR Duo, which can run on both petrol and LPG.

Maruti had sold about 25,000 Omnis in the last four-five years fitted with LPG kit, he said.

Compact car market

He asserted that India was a compact car market, which means cars fitted with engines of 1.2-litre or 1.3-litre capacity. This segment would account for almost 65 per cent of the passenger car market in the country and Maruti was intent on focusing on this segment to retain its leadership position.

India, he said, would become a hub for small car manufacturing in the world and now occupied the third slot after Japan and Brazil. He expected that by the end of the year, India would move ahead of Brazil in small car manufacturing.

Maruti's tie-up with Nissan was an indication of India's strength in producing small cars, Mr Khattar said and added that in the next year or two, more such agreements could be expected.

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