New Delhi: Japanese auto major Suzuki Motor Corporation has asked its Indian subsidiary — Maruti Suzuki India (MSI) to enhance its research and development (R&D) for small cars in the country.
Suzuki Motors has asked its Indian subsidiary to take care of 90% of its R&D for small engines in India itself.
“Engines below 1,200 cc get excise benefit from the government of India and currently 60%-70% of R&D for these engines takes place in Japan. Now Osamu Suzuki want 90% of the R&D to be done in India,” Maruti Suzuki India Chairman R C Bhargava said.
Addressing the company’s shareholders here today, Bhargava said that Suzuki Motor Corporation Chairman Osamu Suzuki has told the board of Maruti Suzuki to enhance the level of R&D of small engines up to 1,200 cc.
“It is important that Maruti develops these engines in India with help from Japan,” he added.
Already Suzuki has announced its plans to make India an R&D hub and bring the level of product developments to that in Japan.
Bhargava said that the SMC Chairman was of the view that going forward small cars sales are going to rise and that of bigger cars drop considering the increase in global oil prices.
“His (Suzuki) view is that oil and commodity prices have increased and the old prices are not going to return. Keeping this in mind, he also emphasised on the need to develop more fuel efficient and less emission cars such as multi-fuel, electric and hybrid cars,” Bhargava added.
In his speech, Bhargava said that MSI was working on developing vehicles which would use cheaper alternative fuels like CNG.
“The R&D efforts will also have to enable our vehicles to meet the new emission and safety regulations, which are to come into force in 2010,” he said.