Maruti Suzuki to tune up engine R&D from India

Maruti Suzuki said today that it would increase the contribution of its research and development work (R&D) on its less than 1200cc engines in India from 30 per cent to 90 per cent within a few years. Earlier, 70 per cent of the R&D work was being done by the company’s Japanese parent, Suzuki Motor Corporation (SMC).

Addressing its shareholders at the company’s 27th AGM, R C Bhargava, chairman of Maruti Suzuki, said, “At the board meeting, Osamu Suzuki (Chairman of SMC) has asked Maruti Suzuki to increase its R&D work on engines which are less than 1200cc.”

Recently, the car major had announced plans to fit the soon-to-be-launched car, A-Star, with the advanced K-series engines, which complies with the Euro 5 emission regulations.

Commenting on the car major’s future plans, Bhargava echoed Osamu’s view about the global trend in auto sales, where consumers would gravitate towards small cars and shun larger cars. “With prices of oil and other commodities rising, the chances of them reverting to their lower prices are improbable.

Small cars are the future. Here’s an opportunity for Suzuki Motor Corporation to leverage its expertise in manufacturing smaller cars economically,” Bhargava said.

Maruti Suzuki which exported about 50,000 cars in FY08, plans to re-enter the European markets with the A-Star compact car. It exited the European market two years ago, for want of a suitable model. The company plans to export about 100,000 cars in Europe and other parts of the world. In its recent annual report, the company had announced its plans to export 200,000 cars by 2011.

Bhargava also spoke about Osamu’s blueprint for the Suzuki Motor Corporation, which he said would focus on developing green vehicles that would run on CNG, multi-fuels, and electric batteries.

At the AGM, the company hinted at the expansion & modernisation of its production facilities at an estimated Rs 9,000 crore to be completed by 2010.