Maruti Udyog has dropped plans to acquire the gear-box technology for its models from Suzuki Motors. The Japanese auto major holds a 50 per cent stake in Maruti, which is a joint venture with the Government of India.
Instead of financing the import of gearbox technology, Maruti now plans to spend the money to roll out new models. Senior company officials estimate that it would have cost as much as Rs 5,000 crore to acquire the technology from Suzuki, an amount that could be utilised more productively in other areas.
A top company official said:
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