Maruti to spend ¥50 billion on engine capacity, research center

Suzuki Motor Corp.’s Indian unit will invest a total of ¥50 billion (US$540.2 million) to meet rising demand for its Swift and A-Star models and also build new cars amid intensifying competition. Maruti Suzuki India will invest ¥25 billion (US$270.1 million) to raise annual production of its K-Series engine to 500,000 units and an equal amount on a research and development centre in the northern state of Haryana. Maruti, which is 54.2% owned by Suzuki, makes one in every two cars sold in India, but it is facing increasing pressure in its bread-and-butter small car segment as more global auto makers introduce new models in this market segment. (March 23, 2010)