Future Maruti-Suzuki products to be jointly produced by MSI and Suzuki Japan

Maruti Suzuki India (MSI) looks forward to reduce the loyalty they pay to the Suzuki Motor Corp (SMC) Japan. MSI engineers from now onward will assist in the development of the Indian centric product with Japanese major - Suzuki Motor Corp (SMC). The first co-developed product would be Maruti's upcoming compact SUV; though nothing is confirmed yet, expect its arrival in early 2015.

Engaging Indian engineers along with Japanese, MSI will be able to considerably reduce the loyalty amount the company is paying to Suzuki Maruti Suzuki India (MSI) Chief Financial Officer Ajay Seth said in a report published. He added that the powertrains and core technology along with the associated platforms will be provided by the Suzuki Japan while MSI engineers will be assisting in the overall development of made-for-India product.

Moreover in the same spree, Maruti Suzuki is coming up with a new Research and Development (R&D) facility which also include a dedicated vehicle testing tract in Rohtak, Haryana; investment ranges to Rs. 2,000 crore. Furthermore, Seth enlightens that the company will focus on the rising SUV and MUV segment with more product flowing on the coming months. Presently, the unit is partially operational and is expected to fully operational by November this year.

Ajay Seth stated "In terms of vehicle models, yes, the next few months we have powerful lineup, we are entering the SUV and MUV segment with full bandwidth."

“You will see this happening (jointly produced product) with the first launch of our compact SUV (probably be the XA Alpha, that the company showcased at the 2012 Indian Auto Expo), as and when it comes, because that is the first case of joint development and therefore when that comes in you will see that rate of royalty will be lower then the normal rate of quality based on the efforts which are being jointly put," he quoted.

Source: ET