Japanese car-maker Suzuki Motor will invest a further 200 billion yen ($1.66 billion) in its Indian venture as it expands capacity at car and engine plants, its chairman, Osamu Suzuki, said on Tuesday.
Already 100 billion yen has been invested in plants run by Maruti Udyog , and another 200 billion yen will be spent by 2010, taking total capacity to 1 million cars a year from 630,000 now, Suzuki said.
Maruti on Tuesday opened its fourth car plant — in Haryana state, near New Delhi, which will have an initial annual capacity of 100,000 units. That will be expanded to 300,000 units by 2010.
A diesel engine and transmission plant, which was also inaugurated on Tuesday at the same location, will start with an output of 100,000 units and reach 300,000 over the same period. The company plans to export 200,000 cars by 2010 to Europe and other markets. It also hopes to export diesel engines to Suzuki units worldwide, starting with Hungary.
Maruti will also make a new model for European markets from 2009/09, and 50,000 compact cars a year for Nissan. Suzuki is also planning to expand capacity in the motorcycle plant in Gurgaon.