NEW DELHI, Sept. 13 (UPI) -- Suzuki Motor Corp. will build a diesel engine factory in India worth $91 million (10 billion yen) and a second car assembly plant, it said on Monday.
Suzuki, Japan's top mini-vehicle maker and primarily a manufacturer of small cars, already has a large market in India through majority-owned Maruti Udyog Ltd. Maruti is the country's dominant car company, as the population upgrades from motorcycles to cars and as roads improve.
Suzuki said they want to boost their presence in the country's fast-growing car market, reports the Hindustan Times.
The Japanese firm, one-fifth owned by General Motors Corp. of the United States, said the engine plant would have an annual capacity of 100,000 units, with production to start in late 2006.
Chief Executive Officer Osamu Suzuki said, however, that he expected output to eventually far exceed that, reaching as many as 250,000 units a year.
"We think it's possible to produce 100,000 units for the Indian market, and another 100,000 for export to Southeast Asia," he told a news conference at the company's unveiling of the remodeled Alto mini-car for the Japanese market. "But I think demand in India alone could reach 200,000 units, while strong exports could be expected for Pakistan, Indonesia and maybe China," he told reporters.
