Maruti plans to maintain focus on small fuel-efficient cars

Maintaining its focus on small cars, Maruti Suzuki India (MSI), a leader in the passenger-car market, plans to develop compact and fuel-efficient cars in the future. Maruti, subsidiary of Japanese auto major Suzuki Motor Corporation (SMC), will enhance the level of research and development (R&D) for small-car engines to cater to the growing demands of smaller cars with smarter engines. With government’s policies encouraging small and fuel-efficient cars, which enjoy many tax sops, Maruti R&D will be geared to design cars that are best suited for the Indian market. MSI chairman R.C. Bhargava, while addressing company shareholders said: “Our Japanese parent company has laid the focus on strengthening R&D for small engines of up to 1,200 cc. Engines below 1,200 cc get excise benefit from the government and currently 60-70% of R&D for these engines takes place in Japan. Now it will change and SMC wants 90% of the R&D to be done in India. But MSI said it has no plans to enter the ”nano car segment” or become a competitor to the existing player. ”Maruti has always been in the small car segment and we have always concentrated on that category of up to 1200 cc cars. But Nano is something which is a totally different segment and we are not venturing or competing in that segment,” said Bhargava. (September 3/4, 2008)