Maruti Suzuki, India’s largest car manufacturer has announced that its parent company Suzuki Motor Corporation will be investing an amount of more than Rs 3,000 crore in the new upcoming facility in Gujarat to operate it as a wholly owned subsidiary in India.
While the Japanese automaker currently holds a 56 percent share in Maruti Suzuki India, the new facility will be owned wholly by Suzuki and will manufacture vehicles on contract for sale by Maruti Suzuki. The new facility will be held by a new wholly owned subsidiary of the carmaker, namely Suzuki Motors Gujarat Private Limited which will commence operations with an initial capital of Rs 100 crore.
The land acquired by Maruti Suzuki for the set up of the new facility in Gujarat will now be transferred to Suzuki.
Speaking about this latest development, Mr. Osamu Suzuki Chairman Suzuki Motor Corporation stated that the new arrangement will enable Suzuki to participate in Maruti expansion in India. Maruti Suzuki will now be able to focus more on the sales and marketing operations in India, while Suzuki will take care of the production and future products.
The vehicles manufactured by Suzuki at the new facility will be sold to Maruti Suzuki at cost price including the royalty charged by the parent company.