Maruti Suzuki’s parent company, Suzuki Motor Corporation (SMC) Japan has asked the former to strengthen the level of research and development for small car engines to meet growing demand.

Addressing company shareholders, Maruti Suzuki India (MSI) Chairman R C Bhargava said that SMC Chairman Osamu Suzuki has told the board of MSI to enhance the R&D capability for small engines of upto 1,200 cc. 

“Engines below 1,200 cc get excise benefit from the government of India and currently 60-70 per cent of R&D for these engines takes place in Japan. Now Osamu Suzuki wants 90 per cent of the R&D to be done in India,” Bhargava said.

“It is important that Maruti develops these engines in India with help from Japan” he added.

Suzuki has already announced its plans to make India an R&D hub and bring the product development level upto levels comparable to Japan.

According to Mr Bhargava, SMC Chairman is of the view that small car sales will rise in the future as global oil prices increase.

“His (Suzuki) view is that oil and commodity prices have increased and the old prices are not going to return. Keeping this in mind, he also emphasised on the need to develop more fuel efficient and less emission cars such as multi-fuel, electric and hybrid cars,” Bhargava added.

Mr. Bhargava also mentioned that MSI was working on alternative fueled engines which will use CNG which right now is the cheapest fuel available in the country.

“The R&D efforts will also have to enable our vehicles to meet the new emission and safety regulation which are to come into force in 2010″ he added.

Source: Economictimes